Working while collecting Social Security: the earnings limit

The two limits for 2026

These limits apply only if you are collecting Social Security and are below full retirement age. Full retirement age is 67 if you were born in 1960 or later.

How much is held back

• Under full retirement age all year: Social Security withholds $1 of benefits for every $2 you earn above $24,480.
• In the year you reach full retirement age: it withholds $1 for every $3 you earn above $65,160, and only counts earnings in the months before your birthday month.

An example

Marcus is 63 and claims Social Security. He earns $44,480 this year. That is $20,000 over the $24,480 limit, so $10,000 of his benefits is withheld, which is $1 for every $2 over. His benefits for the year would be $10,000 smaller than expected. This is an example, not a prediction for you.

The money is not lost

This is the part people often miss. Benefits withheld because of the earnings limit are not gone. When you reach full retirement age, Social Security recalculates your monthly check to give you credit for the months it was held back, so your check becomes larger from then on. You get the money back over time, but only if you live long enough, and you do not get it as a lump sum.

What counts as earnings

Only work income counts: wages, and net earnings from self-employment. These do not count toward the limit: pensions, investment income, interest, capital gains, rental income, and withdrawals from a 401(k) or IRA.

Other things to remember

• Taxes still apply. Your benefit and your wages may both be taxed. See how Social Security is taxed.
• Working can raise your benefit. Social Security uses your 35 highest-earning years. A strong working year can replace a low one.
• Medicare. Medicare can start at 65, whether or not you claim Social Security.

When this should change your decision

If you plan to keep earning well above the limit for a few years, claiming at 62 can mean a lot of your check is held back and then repaid later through a recalculated benefit. In that case, waiting until full retirement age may be simpler. If you plan to stop working, or you earn less than the limit, the earnings test does not matter. Run your own numbers in the Claim Check, then ask SSA about your own earnings.