The $65,160 Social Security Earnings Limit That Only Applies the Year You Reach Full Retirement Age
Working while collecting Social Security sounds straightforward until the earnings limits enter the picture, and the rules shift dramatically depending on exactly where you stand relative to your full retirement age.
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By the time a lot of people near full retirement age (FRA) for Social Security, which is 67 for those born in 1960 or later, they’re ready to say goodbye to work. But that’s not always the case.
If you love your job, you may decide to keep working until you reach FRA or even beyond. Or, you may decide to continue working because you don’t have a lot of retirement savings and wish to build some so you’re not overly reliant on Social Security during your senior years.
You should know that you’re allowed to work while collecting Social Security, which you can choose to claim ahead of FRA. In fact, you can file for benefits at any age once you turn 62.
But if you haven’t reached FRA yet and you work while receiving Social Security, there’s an earnings limit you need to keep on your radar.
Know how working affects your benefits
While it’s permissible to work and collect Social Security at the same time, doing so before reaching FRA subjects you to an earnings test. And if your wages exceed its limit, which can change from one year to the next, you risk having Social Security withheld temporarily.
In 2026, the earnings test limit is $24,480 for people who won’t reach FRA by the end of the year. Beyond that, $1 in Social Security is withheld per $2 of earnings.
Clearly, that doesn’t offer all that much room to earn money without losing Social Security temporarily. But if you’re reaching FRA this year, collect Social Security, and are working, you get a lot more leeway.
The earnings test limit for people reaching FRA by the end of the year is much higher than the limit for people who won’t reach FRA within the year at all. In 2026, you can earn up to $65,160 without losing a dime in Social Security temporarily if you’ll reach FRA by Dec. 31. It’s only once you earn beyond that threshold that withheld benefits come into play.
Even then, the rules aren’t as harsh. For earnings above $65,160, you’ll only have $1 in Social Security withheld per $3 of earnings, which is better than the $1-to-$2 ratio for people who won’t reach FRA within the year.
Withheld Social Security benefits aren’t lost forever
While earning a lot of money might cause you to lose a chunk of your Social Security temporarily, it’s only a short-term hit. Once FRA arrives, you should receive that money back in the form of larger checks.
And remember, the earnings test only applies before FRA to begin with. So let’s say you just filed for Social Security, still work, and will reach FRA in December. Once your birthday arrives, the earnings test goes away — at least for you. At that point, you can earn $200,000 a year and Social Security will still pay your monthly benefit in its entirety.
Of course, if you haven’t claimed Social Security yet, are nearing FRA, and are still working, you may want to hold off on taking benefits a bit longer — not necessarily because of the earnings test, but because filing ahead of FRA results in a reduction to your monthly checks. And unlike withheld benefits under the earnings test, the reduction for filing early is a permanent one, which means it could cause you more financial harm in the long run.
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Maurie Backman has more than a decade of experience writing about financial topics, including retirement, investing, Social Security, and real estate. Her work has appeared on sites that include The Motley Fool, USA Today, U.S. News & World Report, and Kiplinger.
Prior to becoming a full-time financial writer, Maurie worked in the financial industry trading distressed debt. She then changed course and spent a few years designing electronic toys. After a stint in content marketing and UX, she shifted back into writing and has since covered everything from the housing market to estate planning to Medicare.
When she's not busy writing, Maurie can be found hiking, walking her dogs, driving her kids to their various sports practices and games, and curling up with a good book. She cooks on occasion and bakes way too often.
