Thinking about claiming Social Security while you continue working?
There’s one number you need to know first.
In 2026, if you’re under full retirement age for the entire year, you can earn up to $24,480 before Social Security begins withholding some of your benefits.
Earn more than that, and the Social Security Administration generally withholds $1 in benefits for every $2 you earn above the limit.
That means earning just $2,400 above the limit could result in $1,200 of Social Security benefits being withheld.
And if you go substantially over the limit, the amount withheld can be much larger.
Here’s how the rule works — and the important part many retirees misunderstand.
The $24,480 Number to Know
You are allowed to work while receiving Social Security retirement benefits.
But if you haven’t yet reached full retirement age, your earnings can affect how much Social Security you actually receive.
For 2026, if you’ll be under full retirement age for the entire year, the earnings limit is:
$24,480
Once your earnings exceed that amount, Social Security generally withholds $1 in benefits for every $2 above the limit.
Here’s a simple example.
Suppose you earn $26,880 in 2026.
That’s $2,400 over the limit.
Divide that by two and you get:
$1,200
That’s how much in Social Security benefits could be withheld under the earnings test.
The higher your earnings go, the larger the potential withholding.
But There’s an Important Catch
This is where headlines about Social Security can be misleading.
The money isn’t necessarily simply “lost forever.”
Once you reach full retirement age, Social Security recalculates your benefit to account for months in which benefits were withheld because of the earnings test.
So it’s better to think of the earnings test as benefits being withheld, rather than automatically describing it as a permanent penalty.
But that doesn’t mean you should ignore the rule.
If you’re counting on a certain amount of Social Security income to cover your expenses this year, having benefits withheld could create a very real cash-flow surprise.
What Is Your Full Retirement Age?
Your full retirement age depends on the year you were born.
For people born between 1943 and 1954, it’s 66.
It then gradually increases.
For anyone born in 1960 or later, full retirement age is 67.
Once you reach full retirement age, the retirement earnings test goes away.
You can work and earn as much as you want without Social Security withholding retirement benefits because of your earnings.
There’s a Different Rule in the Year You Reach Full Retirement Age
This is another important distinction.
If you reach full retirement age sometime during 2026, a much higher earnings limit applies before the month you reach full retirement age.
That limit is:
$65,160
And instead of withholding $1 for every $2 above the limit, Social Security withholds $1 for every $3 over it.
Only earnings before the month you reach full retirement age count toward this particular limit.
Beginning with the month you reach full retirement age, there’s no earnings limit.
Not All Income Counts
Here’s some good news.
The earnings test isn’t based on every dollar coming into your household.
Social Security generally counts wages from a job and net earnings from self-employment.
It does not count income such as:
- Pensions
- Annuities
- Investment income
- Interest
- Veterans benefits
- Other government or military retirement benefits
That distinction can be extremely important.
If you’re retired and receiving investment income in addition to Social Security, don’t automatically assume that income puts you over the earnings limit.
What If You Retire in the Middle of the Year?
There’s another wrinkle.
Imagine you earn a relatively high salary from January through June, retire in July and immediately start Social Security.
Your total annual earnings could already be above the $24,480 limit.
Does that mean you can’t receive a full Social Security payment for the rest of the year?
Not necessarily.
Social Security has a special monthly rule that can apply during the first year of retirement.
For someone under full retirement age throughout 2026, Social Security can consider you retired during a month in which your earnings are $2,040 or less, assuming applicable self-employment rules are also met.
This rule is designed for exactly this type of situation — someone who retires partway through a year after already earning more than the annual limit.
The Bigger Mistake: Not Planning Before You Claim
Working while receiving Social Security isn’t necessarily a bad idea.
For some people, it may make perfect sense.
The mistake is assuming you can start collecting early, continue earning the same amount and automatically receive every dollar of your expected Social Security check.
Depending on your age and earnings, you may not.
Before claiming Social Security while you’re still working, know these three numbers:
1. Your full retirement age
2. How much you expect to earn this year
3. The current Social Security earnings limit
Then calculate how the earnings test could affect the checks you’re expecting.
Don’t Let a Surprise Hit Your Retirement Budget
Retirement decisions are rarely as simple as “claim now” or “wait.”
Working longer may affect your benefits.
Claiming earlier may affect your monthly payment.
And working while claiming before full retirement age can temporarily affect how much Social Security actually arrives in your bank account.
For 2026, remember the number:
$24,480.
If you’re under full retirement age all year and your wages or net self-employment earnings exceed that amount, Social Security can begin withholding benefits.
Just $2,400 above the limit can mean $1,200 withheld.
That’s something worth knowing before you make your retirement plans — not after your Social Security check is smaller than you expected.
