It’s possible to collect Social Security while you are still employed. You can collect both Social Security retirement and survivorship benefits (though not at the same time) even if you are currently employed.
Each year, the Social Security Administration (SSA) reviews the earnings for all Social Security recipients. Your benefit amount may be increased if your earnings during the prior year were higher than one of the years used to calculate the retirement benefit. This increase is paid out retroactively to the January after the income was earned. It can be beneficial to you and your family to receive higher benefits, as it can increase the benefits that you and your family or survivors receive later. Additionally, if you are currently the recipient of survivorship benefits, then the additional earnings could lead to your retirement benefits being higher than your current survivorship benefits.
Income Limits and Social Security Benefits
If you have not reached full retirement age and earn more than the yearly limit, your benefit amount may be reduced. If you are under the full retirement age for the entire year, the SSA deducts $1 for every $2 that you earn over the yearly limit. The 2016 limit for this is $15,720.
If you reach full retirement age within the year, the SSA deducts $1 for every $3 that you earn over the yearly limit. The 2016 limit for this is $41,880. This only includes income that you earned in the months prior to reaching retirement age.
When you reach full retirement age, your income earnings no longer negatively impact your Social Security benefits, regardless of how much you earn. When the SSA recalculates your Social Security benefit amount, any months when your benefits were reduced or withheld are not included in the calculations.