Working and claiming Social Security at the same time sounds like a recipe for a comfortable, even luxurious lifestyle. This can be true, but many early Social Security claimers are surprised to learn this isn't a universal experience.
Early claimers can run afoul of the earnings test -- a little-known rule that can cost them some or all of their monthly benefits. Fortunately, a 2026 change makes this a little less likely.
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Earnings test limits are higher in 2026
The Social Security earnings test withholds money from your checks if you're claiming while under your full retirement age (FRA) and earn more than a certain amount from your job throughout the year. Your FRA depends on your birth year, but it's 67 for most workers today.
How much you lose to the earnings test depends on your income and age. If you'll be under your FRA all year, you lose $1 for every $2 you earn over $24,480. This limit might seem low, but it's up from $23,400 in 2025.
Those who will reach their FRA this year lose $1 for every $3 they earn over $65,160, assuming they earn this much before their birth month. This limit was $62,160 in 2025.
These increased earnings test limits mean you can earn more from your job before it affects your Social Security checks. This can give you more monthly income and a higher standard of living. But it doesn't mean you'll avoid the earnings test completely.
What to know if you encounter the earnings test
You could still lose money to the earnings test in 2026 if you have a high income. Some people may even lose entire months of Social Security benefits because of this rule. It's frustrating, but it has a silver lining.
Once you reach your FRA, the Social Security Administration will recalculate your benefits and increase your future checks to make up for what it withheld before. If you lost entire checks in years past, you could see a substantial boost at this time.
But until then, you may have to redo your budget to plan for less money from Social Security. You might need to withdraw more from personal savings or work a little more to make up the difference.
You'll also want to keep an eye out for future changes to the earnings test limits if you expect this to be an issue in 2027 and beyond. The government will increase these limits again in future years, which will allow you to earn even more before you lose anything from your Social Security checks.
