Social Security: When most people think about retirement, they picture a peaceful life—long walks on the beach, casual games of golf, or leisurely days at home with no rush or deadlines.
But for a growing number of retirees, reality looks different. Many older adults start collecting Social Security while still working. Sometimes it’s a personal choice to stay active, but other times it’s a financial necessity because their benefits alone aren’t enough to cover living expenses.
However, if you work and receive Social Security before reaching your full retirement age (FRA), part of your benefits could be reduced or even temporarily stopped. Social Security has specific rules about working while claiming retirement benefits—and it’s essential to know how these rules work.
Even more importantly, these rules are set to change in 2026. Understanding the updates can help you better plan if you intend to work while collecting Social Security.
Social Security Work Rules Are Changing in 2026
To understand the upcoming changes, let’s first look at the rules in place for 2025.
If you’ve already reached your full retirement age, you can earn as much income as you want without affecting your Social Security payments. But if you’re younger than your FRA and still working while collecting benefits, Social Security may withhold some of your payments if your earnings exceed certain limits. These limits depend on whether you will reach your FRA during the year.
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If you will not reach full retirement age in 2025:
You’ll lose $1 in benefits for every $2 you earn over $23,400. These withheld benefits aren’t gone forever—your payment amount will be recalculated at full retirement age, increasing your future checks. Still, your monthly benefits might be reduced or paused temporarily if you earn more than the limit. -
If you will reach full retirement age in 2025:
Before your birthday, you’ll lose $1 in benefits for every $3 earned above $62,160. Once you officially reach FRA, there are no longer any earnings limits, and you can work freely without losing benefits.
What’s Changing in 2026?
In 2026, the rule allowing unlimited earnings after FRA remains in place. However, the income thresholds for people under their FRA are expected to increase.
While the official numbers haven’t been announced yet, current projections suggest:
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The $23,400 limit will rise to about $24,360.
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The $62,160 limit for those reaching FRA during the year will increase to around $64,800.
This means you’ll be able to earn roughly $960 more if you won’t reach FRA and about $2,640 more if you will reach it that year—without having your benefits reduced.
Why It Matters to Know These Rules
Understanding how working affects your Social Security benefits is crucial for retirement planning. Some retirees plan to supplement their savings or reduce withdrawals from retirement accounts like 401(k)s by working part-time while receiving Social Security. But if you don’t know the earnings limits, you could unintentionally reduce your benefits.
Many Americans don’t have enough saved for retirement and rely on working to make ends meet. If that’s your situation, it’s important to consider whether working before FRA is worth it if much of your Social Security gets withheld.
Knowing these rules early can help you set realistic expectations, adjust your budget, and make smarter decisions for long-term financial stability.
