Yes, you can work while receiving Social Security, but if you are under full retirement age, the Social Security earnings limit can temporarily reduce your checks. In 2026, the SSA withholds $1 of benefits for every $2 you earn above $24,480. In the year you reach full retirement age, the limit is $65,160 and the withholding is $1 for every $3. For 2027, those limits rise to $25,560 and $67,920, per the SSA 2027 fact sheet. Once you reach full retirement age, there is no limit at all.
Social Security Earnings Limit for 2026 and 2027
| Your situation | 2026 limit | 2027 limit | Withholding above the limit |
|---|---|---|---|
| Under full retirement age all year | $24,480 ($2,040 / month) | $25,560 ($2,130 / month) | $1 for every $2 |
| Year you reach full retirement age (earnings before that month) | $65,160 ($5,430 / month) | $67,920 ($5,660 / month) | $1 for every $3 |
| Month you reach full retirement age and later | No limit | No limit | None |
For reference, the prior-year limits shown in the original version of this article are below.
Examples
Under full retirement age: A 64-year-old collecting benefits earns $30,000 in 2026. That is $5,520 over the $24,480 limit, so the SSA withholds $2,760 of benefits for the year, about half of the excess.
Year of full retirement age: A worker reaches full retirement age in November 2026 and earns $75,160 from January through October. That is $10,000 over the $65,160 limit, so the SSA withholds about $3,333, one-third of the excess. Earnings in November and December do not count.
What Counts as Earnings?
- Counts: Gross wages from a job (before deductions) and net earnings from self-employment.
- Does not count: Pensions, annuities, IRA and 401(k) withdrawals, investment income, interest, capital gains, rental income (unless you are in the real estate business), and other government benefits.
For self-employed people, the SSA also looks at whether you are performing substantial services in your business, not just your net profit.
Withheld Benefits Are Not Lost
Withholding is not a permanent penalty. When you reach full retirement age, the SSA recalculates your benefit to give you credit for the months benefits were withheld, so your monthly check goes up. In effect, those months are treated as if you had claimed later. Over a normal lifespan, many people recover most or all of the withheld amount.
The Special First-Year Rule
In your first year of retirement, a monthly test can apply. You can receive a full benefit for any month your wages are at or below the monthly limit ($2,040 in 2026, $2,130 in 2027) and you do not perform substantial self-employment services, regardless of your annual earnings. This helps people who retire mid-year after earning a large salary earlier in the year.
How the SSA Withholds Benefits
The SSA uses your estimate of annual earnings, then withholds entire monthly checks at the start of the year until the required amount is covered. For example, if $2,760 must be withheld and your benefit is $1,500 a month, the SSA would withhold your January and February checks ($3,000), and the extra $240 is repaid the following year after it reviews your actual earnings. Tell the SSA promptly if your expected earnings change.
How Work Affects Family Benefits
If you are collecting retirement benefits and your spouse or children also receive benefits on your record, earnings over the Social Security earnings limit can reduce the whole family’s benefits, not just yours. By contrast, if your spouse works and you do not, your spouse’s earnings only affect benefits paid to your spouse. Survivors who collect before their own full retirement age face the same earnings test.
Disability Benefits Use Different Rules
The retirement earnings test does not apply to Social Security Disability Insurance (SSDI). Instead, SSDI looks at whether you are doing “substantial gainful activity.” For 2026, that is earnings over $1,690 a month for non-blind individuals ($2,830 if blind), rising to $1,770 and $2,950 in 2027. A trial work month is any month with earnings over $1,210 in 2026, or $1,270 in 2027, and you can work nine trial months without losing benefits. Report all work to the SSA if you receive disability benefits.
Should You Claim Early If You Are Still Working?
If you expect to earn well above the Social Security earnings limit, claiming before full retirement age often makes little sense, because much of your benefit will be withheld anyway. Waiting can be simpler and, after full retirement age, earns delayed retirement credits. Compare the trade-offs in claiming Social Security at 62 and claiming Social Security at 70.
Working Can Still Raise Your Benefit
Every year you work, the SSA checks whether your new earnings are among your 35 highest years. If they are, your benefit is recalculated upward, even after you start collecting. Higher earnings also mean more of your benefit may be taxable. See Social Security tax thresholds.
Frequently Asked Questions
How much can I earn while on Social Security in 2026?
If you are under full retirement age all year, $24,480 before benefits are reduced. In the year you reach full retirement age, $65,160 before that month. After full retirement age, there is no limit.
What is the Social Security earnings limit for 2027?
$25,560 if you are under full retirement age all year, and $67,920 in the year you reach full retirement age.
Do pensions or 401(k) withdrawals count toward the earnings limit?
No. Only wages and net self-employment earnings count.
Do I get withheld Social Security benefits back?
Yes, indirectly. Your benefit is recalculated at full retirement age to credit the withheld months, which raises your monthly check.
Final Thoughts
The Social Security earnings limit only applies until full retirement age, and withheld benefits are credited back later. If you plan to keep working, estimate your earnings carefully, report changes to the SSA, and weigh whether delaying your claim makes more sense.
Have questions about how this applies to your situation? Book a free consultation with Aric and get answers from a CPA.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
