Many Americans approaching retirement wonder whether they can continue working while collecting Social Security benefits. In 2026, this question is more relevant than ever, as rising living costs encourage older adults to keep earning even after they begin receiving monthly payments. The good news is that working while collecting Social Security is allowed, but the impact on benefits depends largely on age and income level.
Understanding Social Security and Work in 2026
Social Security is a federal program designed to provide financial support to individuals who can no longer rely on regular employment income due to age. Retirement benefits are based on a person’s work history, including the number of years worked and the payroll taxes paid into the system. To qualify, most people need at least 40 work credits, which typically means around 10 years of work. Full retirement age is 67 for individuals born in 1960 or later.
Can You Work While Receiving Social Security
Yes, individuals can work while collecting Social Security benefits in 2026. However, the effect on benefits depends on whether the person has reached full retirement age. Those who start receiving benefits as early as age 62 and continue working may see part of their benefits temporarily withheld if their earnings exceed certain limits.
Earnings Limits Before Full Retirement Age
For individuals who are under full retirement age for the entire year in 2026, the annual earnings limit is set at $24,480. If earnings go beyond this amount, Social Security withholds $1 in benefits for every $2 earned above the limit. This does not mean the money is lost permanently; rather, benefits are reduced temporarily and adjusted later.
Special Rule for the Year You Reach Full Retirement Age
If a person reaches full retirement age during 2026, a higher earnings limit applies. In that year, individuals can earn up to $65,160 before benefit reductions begin. For earnings above this amount, Social Security withholds $1 for every $3 earned over the limit. This rule only applies to income earned before the month full retirement age is reached.
What Happens After Full Retirement Age
Once full retirement age is reached, there is no earnings limit at all. Individuals can earn any amount from work without any reduction in Social Security benefits. In fact, continued work may increase future benefits slightly, since higher earnings can replace lower-earning years in the benefit calculation.
Key Takeaway for Workers in 2026
Working while collecting Social Security in 2026 is possible and common. The main factor to understand is how earnings limits apply before full retirement age. Planning ahead and knowing these limits can help individuals avoid surprises and manage their income more effectively.
Disclaimer:
This article is for informational purposes only and does not constitute financial, legal, or retirement planning advice. Social Security rules, earnings limits, and benefit calculations may change, and individual circumstances can vary. Readers are advised to consult the Social Security Administration or a qualified financial professional for guidance specific to their situation.
