Retirement gigs can reduce your early Social Security benefits

If you apply for Social Security before your full retirement age and choose to still work, the Social Security Administration will temporarily slash your benefit payments. In 2023, for every $2  you earn above $21,240, you’ll get your monthly benefit reduced by $1.

If you reach full retirement age in 2023, the reduction goes down to $1 for each $3 you earn above $55,520, but this rule only applies until the month you reach full retirement age. Once you’re there, there’s no reduction, no matter how much money you make.

Keep in mind that these reductions aren’t permanent. Once you reach full retirement age, your pension check will be adjusted upward to make up for the original reductions.