For most people, income earned after age 70 does not affect Social Security benefits. However, there are some exceptions. In this article, we’ll explain how income after age 70 can impact your Social Security benefits and when you may need to pay taxes on your benefits.
The Social Security earnings test
The Social Security earnings test applies to people who have started receiving Social Security benefits but are below full retirement age. In 2023, the full retirement age is 67 for people born in 1960 and later.
If you are below full retirement age and earn above certain limits, your Social Security benefits will be reduced $1 for every $2 earned above the limits. For 2023, the annual earnings limits are:
- Under full retirement age: $21,240
- Year reach full retirement age: $56,520 (applies only to earnings for months prior to attaining full retirement age)
However, once you reach full retirement age, the earnings test no longer applies. You can earn any amount without having it reduce your Social Security benefits.
Income taxes on Social Security benefits
Although your benefits may not be reduced after full retirement age, you may still have to pay federal and state income taxes on your Social Security benefits if you have substantial income from other sources.
Up to 85% of your Social Security benefits may be taxable if your combined income exceeds certain thresholds. The combined income thresholds for 2023 are:
- Single filers:
- Combined income of $25,000 to $34,000 – up to 50% of benefits are taxable
- More than $34,000 – up to 85% of benefits are taxable
- Joint filers:
- Combined income of $32,000 to $44,000 – up to 50% of benefits are taxable
- More than $44,000 – up to 85% of benefits are taxable
Combined income = Adjusted gross income + Nontaxable interest + 1⁄2 of Social Security benefits
So even if your earned income is low after age 70, other income sources like pensions, taxable interest, dividends, and tax-exempt bond interest can make your Social Security benefits partially taxable.
The portion of benefits subject to income taxes also includes any benefits you elect to have withheld for Medicare Part B or Part D premiums.
When you need to pay back benefits
In some cases, even if you are past full retirement age, you may have to pay back some Social Security benefits if your income exceeds certain limits. This happens if you are earning a pension from work not covered by Social Security, like certain government or foreign employment.
If you get a pension from uncovered work and qualify for Social Security spousal or survivor benefits based on your spouse’s work record, your benefits may be reduced due to the government pension offset (GPO) or windfall elimination provision (WEP).
Under the GPO, your Social Security spousal or survivor benefits can be reduced by 2/3 of your government pension. The WEP can reduce your own Social Security retirement or disability benefit if you also get a pension from uncovered work.
In both cases, the reduction in Social Security benefits only applies if your pension exceeds certain thresholds. For 2023, those thresholds are $1,135 per month for the WEP and $288 per month for the GPO. If your pension stays below the thresholds, your Social Security benefits will not be affected.
The WEP and GPO were designed to prevent people from getting the full amount of both a government pension and Social Security benefits. The rules apply even after you reach full retirement age and are no longer subject to the earnings test.
Other special rules
In addition to the major exceptions noted above, there are some other special rules that can impact your Social Security benefits after age 70:
- Workers’ compensation – Payments from workers’ compensation may reduce your Social Security disability benefits after full retirement age in some cases.
- Disability benefits – If you switch from Social Security disability to retirement benefits at full retirement age, income can affect your ongoing disability payment amounts.
- Non-covered pensions – Some pensions from foreign or non-covered work may result in full loss of Social Security benefits, even after age 70.
- Federal employee pensions – The windfall elimination provision may apply if you worked both under Social Security and the federal civil service systems.
So there are select scenarios where your Social Security benefits could be impacted by your work or other income sources even after reaching full retirement age.
Conclusion
For most retirees, income earned after age 70 does not reduce Social Security benefits. The Social Security earnings test ends once you reach full retirement age, which is currently age 67 for most people.
However, your Social Security benefits may still be partially taxable based on your total income from other sources. And in limited cases, certain pensions can trigger benefit reductions like the government pension offset or windfall elimination provision.
Unless you have income sources like non-covered pensions or other special circumstances, your Social Security benefits will not be affected by earnings or income after you reach full retirement age.
| Issue | Impact on Benefits After Age 70 |
|---|---|
| Earned income from wages or salaries | No impact – earnings test ends at full retirement age |
| Other income like pensions, interest, dividends | Can make benefits partially taxable based on total income |
| Pensions from non-covered work | May trigger WEP, GPO, or other benefit reductions |
| Most income sources | No effect on Social Security benefits after age 70 |
In summary, income earned after age 70 typically does not reduce Social Security retirement benefits. But higher incomes from other sources can result in taxes on your benefits. And special rules apply to certain pensions that may trigger offsets in benefits even after you reach full retirement age.
Frequently Asked Questions
Does earning income after 70 affect my Social Security check amount?
No, income earned after age 70 does not reduce your monthly Social Security benefit amount. The Social Security earnings test ends when you reach full retirement age, currently age 67 for most people.
What if I earn a high salary after age 70 while getting Social Security?
Your high salary itself won’t affect your Social Security benefit amount. However, it can make your benefits taxable if your total income from all sources is above the IRS thresholds. Up to 85% of your benefits can be subject to federal income tax.
At what age does income no longer impact your Social Security benefits?
For most people, income no longer impacts your Social Security retirement benefits once you reach full retirement age, which is currently 67 for anyone born in 1960 or later. The earnings test ends at your full retirement age.
Can I lose my Social Security benefits after age 70 if I make too much money?
In most cases, no. The earnings test that causes benefit reductions ends when you reach full retirement age. After age 70, your benefit amount is fixed and earnings won’t change it. The only exception would be if you get a pension from non-covered work that triggers WEP or GPO.
If I have a private pension, will my Social Security be affected after I retire?
If your pension is from a job where you paid Social Security taxes, it won’t affect your Social Security benefit amount after you retire and reach full retirement age. It may make your benefits partially taxable if your total income is high enough. The only impact would be if your pension is from work not covered by Social Security.
Does passive income like dividends or rental income impact benefits after 70?
No, passive income does not reduce or affect your Social Security benefit amount after age 70. But it can make your benefits partially taxable if your total income from all sources exceeds the IRS thresholds. Only earned income from wages can reduce benefits prior to full retirement age.
Can my Social Security benefits be lowered at age 80 if I have too much income?
No, your Social Security benefit amount is locked in once you reach age 70. The amount will not be decreased after that age based on your income. Your benefits could become taxable if your total income is high enough, but the benefit amount will not be reduced just because you have other income sources.
If I have a pension from another country, could it affect my Social Security?
Possibly, if your foreign pension is from work that was not covered by U.S. Social Security. Some foreign pensions fall under the windfall elimination provision (WEP) which can reduce your Social Security benefits as early as age 62. If your foreign pension exceeds $1,135 per month in 2023, it may trigger the WEP and lower your Social Security benefit amount.
Can city/state pensions lower Social Security benefits after retirement?
Yes, government pensions from non-covered work may trigger the government pension offset (GPO) after retirement. If your government pension exceeds $288 per month in 2023, your Social Security spousal or survivor benefits (not your own benefit) may be reduced by 2/3 of your pension amount. This reduction can apply even after age 70.