• As early as age 62, but benefit will be reduced.
• Full Retirement Age varies between 66 and 67, depending on your birth year.
• Delaying benefits beyond FRA increases your monthly payment up to age 70.
• At age 70, benefit maxes out in value.

• Based on your highest 35 years of earnings.
• Adjusted for inflation and the age you begin collecting.

Earnings Limit Rules (2025)

The earnings limit applies only if you are under your full retirement age (FRA) and receiving Social Security retirement benefits.

1. If You Are Under FRA All Year

• Annual earnings limit: $23,400
• Reduction: Social Security deducts $1 for every $2 you earn above this limit

2. In the Year You Reach FRA

• Earnings limit (before the month you reach FRA): $62,160
• Reduction: Social Security deducts $1 for every $3 earned above this limit, but only for earnings before the month you reach FRA

3. After You Reach FRA

• No earnings limit: You can earn any amount without a reduction in benefits

What Counts as Earnings?

Only earned income counts toward the limit:

• Included: Wages, net self-employment income, bonuses, commissions, vacation pay.
• Excluded: Pensions, annuities, investment income, interest, veterans’ benefits, or other government/military retirement benefits.

Important Notes

• Temporary Reductions: Any benefits withheld due to excess earnings are not lost. Once you reach FRA, your monthly benefit is recalculated upward to account for months when benefits were withheld.
• Reporting Changes: If your earnings change, you should notify SSA to avoid overpayments or underpayments.

Disabled Adult Child (DAC) benefits are a type of Social Security Disability Insurance (SSDI) benefit available to adults with disabilities that began before age 22. These benefits are based on the earnings record of a parent who is retired, disabled, or deceased.

Eligibility Criteria:

• The adult child must be unmarried.
• The disability must have started before age 22.
• The parent must be receiving Social Security retirement or disability benefits or be deceased.
• The adult child does not need to have worked or paid into Social Security.

DAC benefits are paid from the parent’s Social Security record, but they do not reduce the parent’s own retirement benefit. Meaning, regardless of when the parent begins to draw retirement, the DAC beneficiary will receive the same amount whether the parent files at age 62 or 70.

• Social Security imposes a cap on the total amount that can be paid to a family based on one worker’s record.
• If multiple family members (e.g., a spouse and a DAC) are drawing benefits, the total family benefit may be reduced proportionally to stay within the FMB.
• The worker’s own benefit is never reduced, but auxiliary beneficiaries (like the DAC) may receive less if the cap is exceeded.

• A DAC can start receiving benefits based on the record of a retired, disabled, or deceased parent.
• If only one parent is eligible at the time (e.g., retired early), the DAC benefit is based on that parent’s Primary Insurance Amount (PIA)—typically 50% of the PIA if the parent is living.

• When the second parent becomes eligible (e.g., retires at full retirement age or later), the DAC can switch to the higher benefit if it results in a larger monthly amount.
• The DAC is entitled to the highest benefit available from either parent

• The switch often happens automatically in the SSA system once the second parent files for benefits.
• However, it’s strongly recommended to contact SSA to confirm the update and ensure the correct benefit is applied

• The DAC benefit is based on the parent’s PIA, not the increased amount from delayed retirement credits. For example, if a parent delays retirement to age 70, the DAC still receives 50% of the PIA, not 50% of the increased benefit
• If both parents are receiving benefits, the DAC will receive the higher of the two—not both.
• The Family Maximum Benefit (FMB) may limit the total benefits payable to all family members on one record, but the DAC’s benefit will still be based on the higher PIA if switching records.

Let’s say:

• Mom retires early at 62 with a PIA of $1,500 → DAC receives $750/month.
• Dad retires at 70 with a PIA of $2,800 (actual benefit $3,700 due to delay).
• DAC switches to Dad’s record and receives 50% of $2,800 = $1,400/month.