Retirement doesn't necessarily mean what it used to. Very few people get the proverbial gold watch after decades of working for the same company, and almost no private sector workers have a guaranteed pension from their employer to rely on when they've left their job in their old age.
As a result, it's common for people to phase into retirement slowly, and even work a little bit after they have officially left their career behind. Sometimes, people choose to do this because they actually enjoy their work, find it meaningful, and like spending time with their coworkers. They keep working because it gives them purpose. In other situations, it's a matter of financial necessity due to having too little money in retirement plans.
Whether you're working because you want to or because you have to, you should know the rules for collecting a paycheck while you are getting Social Security. And, you should also be aware that those rules are changing in 2026 in a way that could impact the income coming into your home.
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A change to Social Security's work rules affects some retirees
In 2026, there's a change coming to the rules for working while collecting benefits that applies to some retirees who get a paycheck and who collect benefits.
These changes are not going to affect anyone who is working after reaching full retirement age (FRA) because once you've hit that milestone, there is no longer a limit on the income you can earn before your Social Security payments are reduced. You will hit FRA at age 67 if you were born in 1960 or beyond, and if you were born earlier, your FRA is:
- 66 and 10 months if you were born in 1959
- 66 and 8 months if you were born in 1958
- 66 and 6 months if you were born in 1957
- 66 and 4 months if you were born in 1956
- 66 and 2 months if you were born in 1955
If you have reached your FRA, then there's nothing you need to know about Social Security's work rules other than that they don't apply to you. If you haven't, though, then you need to be aware of the rule change because it affects how much you can work before benefits are temporarily forfeited due to earning too much.
The good news is, you are going to be allowed to earn more in 2026, giving you more opportunities to increase your total combined household income.
This is exactly how Social Security's work rules are changing in 2026
Social Security sets limits for how much you can work each year while under your FRA. If you go above them, you lose either $1 in benefits for every $2 earned above the threshold if you won't reach FRA all year, or $1 in benefits for every $3 above it if you'll hit FRA at any point during the year.
When you lose benefits, the Social Security Administration takes away whole checks. So, you could have some months where you get $0 benefits, or even lose your benefits in most or every month, depending on earnings. This can be a hard pill to swallow if you were hoping to get Social Security and a paycheck.
The upside, though, is that benefits are recalculated at full retirement age. While your standard benefit was reduced based on early filing penalties if you claimed before FRA, you are credited back the early filing penalties for any month no check came. This raises your monthly benefits for life when they're recalculated at FRA, which can mean you don't end up having to take as much out of your 401(k) or IRA later.
So, when do you start to lose benefits?
- In 2025, you begin losing $1 in benefits for every $2 above $23,400, and in 2026, that's going up to $24,480. This is for those who won't hit FRA all year.
- In 2025, you lose $1 in benefits for every $3 above $62,160, and in 2026, that number is going up to $65,160. This is for those who will hit FRA sometime during the year.
You need to keep these changes in mind because you may decide you want to work a little more this year, since you can do so without seeing your Social Security checks go away.
