If you haven't reached full retirement age (FRA) yet but have claimed Social Security benefits, there's a little good news this year. Whether you're looking for a little extra money to help you keep pace with inflation or would simply be bored without a job, working (part-time or full-time) recently became a little easier.
That's due to a rule change for 2026 that allows you to earn more money before the Social Security Administration (SSA) withholds any benefits. Here's how it works.
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If you haven't reached FRA yet
For most workers today, full retirement age is 67. If you began collecting Social Security before hitting FRA, there's a limit on how much you can make before Social Security begins withholding a portion of your monthly benefits.
The good news? You can now earn up to $24,480 annually before the SSA will withhold $1 for every $2 in excess of that amount. That's an increase of more than $1,000 over last year's maximum earnings threshold.
Let's say you work part-time and earn $34,480 ($10,000 above the earnings limit). The SSA will reduce your benefit by $1 for every $2 you're over the limit, meaning you'll receive $5,000 less in benefits ($10,000/$2 = $5,000).
While you won't receive the $5,000 you earned in the year it was earned, it will find its way back to you. That's because when you reach FRA, the SSA will recalculate your monthly benefit and add any funds withheld due to working back into your benefits. In other words, your benefits will be higher to ensure you get everything you earned.
Two notable exclusions
- If you receive Social Security disability benefits or work outside the U.S., different rules apply.
- If you're a spouse or survivor who receives benefits either due to having minor children or children with disabilities in your care, you won't receive increased benefits at FRA if money was withheld due to employment.
The year you reach FRA
In the year you reach FRA, you can earn up to $65,160 in the months leading up to your birthday. The SSA will withhold $1 for every $3 earned above that. Let's say you turn 67 in July. Between January and the end of June, you can earn up to $65,160 with nothing withheld from your benefits.
That's a $3,000 increase over the 2025 limit. Again, any money withheld due to work will be factored back into your benefits once they're recalculated.
At or above FRA
You're free to earn as much as you would like without any money being withheld from your Social Security benefits. Given the cost of living, raising the maximum you can earn while receiving Social Security benefits comes as welcome news.
