By the time many people are ready to claim Social Security, they are done earning a paycheck from a job.
The earliest age to claim Social Security is 62. Some older Americans choose to wait until full retirement age (FRA) so they can collect benefits without any reduction. FRA is 67 for those born in 1960 or later, and 2026 marks the first year that threshold fully takes effect. It is the final scheduled FRA increase under the 1983 congressional reform that shored up the program’s finances.
There is also the option to delay Social Security past FRA for larger monthly checks. For each year filers hold off, up to age 70, their benefit grows by 8%.
You may be collecting a Social Security check right now. If you have a robust nest egg to supplement those benefits, you may be living quite comfortably. But many people reach retirement age with little or no savings, and in that case you may need to keep working in some form to fill the income gap.
The good news is that working while collecting Social Security is allowed. The rules, however, have changed for the better in 2026, and there is important context worth knowing before you decide whether to keep earning a paycheck.
Understand how Social Security’s earnings test works in 2026
Once you reach FRA, you can earn any amount of money without it affecting your Social Security benefits. The earnings test only applies if you are working while collecting benefits before reaching FRA, and that is where careful planning pays off.
Earning too much while below FRA can result in having some of your Social Security checks withheld. The earnings test sets the amount you can earn from a job before that withholding kicks in, and the limit adjusts each year.
In 2025, the earnings test limit was $23,400 for those below FRA all year, or $62,160 for recipients who would reach FRA sometime during the year. In 2026, those limits rose to $24,480 and $65,160, respectively. The mechanics work like this: for beneficiaries below FRA for the entire year, the Social Security Administration withholds $1 for every $2 earned above $24,480. For those who will reach FRA sometime in 2026, the formula is more lenient, withholding $1 for every $3 earned above $65,160, and only for the months before their birthday.
The 2026 COLA also plays a role in this picture. Social Security benefits rose 2.8% at the start of the year, lifting the average monthly retirement check by about $56. That bump helps, but with inflation still squeezing household budgets, the higher earnings test limits give working seniors meaningful additional flexibility to supplement their income without consequence.
Don’t worry about losing benefits permanently
One persistent misconception about the earnings test is that withheld benefits are gone for good. That is not the case. Once you reach FRA, the Social Security Administration recalculates your benefit payments to account for any months benefits were withheld. From that point onward, your monthly checks will be larger to make up for what was held back.
That means you should not let the earnings test deter you from working if you need the income. And even if your retirement finances are solid, continuing to work can anchor your routine, keep you socially engaged, and add another year of earnings to your Social Security record, which can raise your eventual benefit.
A potential future change to watch
The earnings test itself may not be around much longer, at least if one bipartisan proposal gains traction. The Senior Citizens’ Freedom to Work Act of 2026, introduced in the Senate by Sen. Rick Scott of Florida and in the House by Rep. Greg Murphy of North Carolina, would repeal the retirement earnings test entirely. If enacted, beneficiaries below FRA could earn any amount without seeing their Social Security reduced. The bill has not yet passed, so the current rules remain in force, but it signals growing congressional interest in removing what critics call a disincentive to work for older Americans.
Editor’s note: This update adds the 2026 Social Security COLA figure of 2.8%, the specific withholding-rate mechanics ($1 per $2 and $1 per $3) for each earnings tier, context on 2026 marking the final scheduled FRA increase under the 1983 reform, and details on the Senior Citizens’ Freedom to Work Act of 2026, a pending congressional bill that would repeal the retirement earnings test.
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