Many people assume that once they're able to start getting Social Security, they won't need to work anymore. But in reality, Social Security will only replace about 40% of your wages if you earn an average paycheck. So it's pretty common for people to need outside income to supplement those benefits.
The good news is that if you decide to work after claiming Social Security, you'll be allowed to do so. But it's not a given that you'll be able to earn as much as you want without consequences.
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Understand how Social Security's earnings test works
To understand the rules of working while on Social Security, we first need to review the rules of claiming benefits.
Once you turn 62, you can sign up for Social Security at any time. But if you don't want your monthly benefits reduced, you'll need to wait until full retirement age to claim them, which is 67 for anyone born in 1960 or later.
If you decide to work while collecting Social Security, you'll be able to earn any amount of income without risking having benefits withheld as long as you've reached full retirement age already.
But as we just discussed, you can claim Social Security well ahead of full retirement age. And in that case, you'll be subject to an earnings test whose limits change every year.
In 2026:
- If you'll be under full retirement age for the whole year, you can earn up to $24,480. From there, $1 in Social Security is withheld per $2 of earnings.
- If you'll reach full retirement age later this year, you can earn up to $65,160. From there, $1 in Social Security is withheld per $3 of earnings.
If you have Social Security withheld due to exceeding the earnings-test limit, that money won't be lost forever. Your benefits will be recalculated once you reach full retirement age, and you'll see your checks increase. But that temporary reduction could still cause a cash crunch, so that's something to be aware of.
Get all the right information before you claim Social Security
If you're expecting to continue working well into your 60s, you may want to hold off on filing for Social Security ahead of full retirement age. Doing so subjects you to an annual earnings test that could result in withheld benefits, not to mention benefits that are reduced off the bat.
To be clear, though, the earnings test only applies to income from a job. If you're retiring at 62 and planning to claim Social Security right away, the earnings test won't apply to you if your only other income is withdrawals from an IRA.
Either way, make sure you know the rules before signing up for Social Security. Understanding the earnings test allows you to claim benefits strategically -- and ideally avoid unpleasant surprises.
