Many people look forward to having Social Security as a source of retirement income. But not everyone stops working once those benefits start rolling in. Whether you're working part-time, consulting, or running a business, it's important to understand how the money you earn can affect your Social Security payments.

In general, there's nothing stopping you from continuing to earn money once benefits begin. But if you earn too much, there could be consequences, depending on your age.

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How your income affects your Social Security benefits

You're allowed to claim Social Security as early as age 62. But you don't get your benefits without a reduction until you reach full retirement age, which is 67 for people born in or after 1960.

Not only does waiting for full retirement age to claim benefits help you avoid a permanent reduction, but it also means you can earn as much money as you want without slashing your Social Security checks temporarily. But if you're working and collecting benefits before full retirement age, you'll be subject to Social Security's earnings test.

The earnings-test limits change every year. But exceeding the limit that applies to you means having benefits withheld.

In that situation, once you reach full retirement age, the Social Security Administration recalculates your monthly checks and repays the benefits you didn't receive up front. But in the near term, you may run into cash flow problems if you have a large chunk of your benefits withheld.

What the current earnings-test limits look like

In 2026, you can earn up to $24,480 if you won't reach full retirement age at all without having benefits withheld. Beyond that point, you'll have $1 in Social Security withheld for every $2 of income:.

If you will reach full retirement age at some point this year, you can earn up to $65,160 without having benefits withheld. From there, you'll have $1 in Social Security withheld per $3 of earnings.

You should know that it's only earned wages that count toward Social Security's earnings test. If you withdraw money from your IRA or cash out dividends you get in your brokerage account, that doesn't count against you.

It's important to understand the rules of working while on Social Security so there are no unwanted financial surprises. Knowing the rules could also help you make a wise decision on when to claim Social Security.

If you haven't reached full retirement age and know you intend to work, for example, you may decide to hold off on filing for benefits if your expected income will cause most of your monthly checks to be withheld. So make sure you know how the earnings test works, and pay attention to annual updates on what the limits look like.