Social Security earnings limits to rise in 2026 for retirees working

For individuals who will remain under their full retirement age for the entirety of 2026, the annual earnings limit will be $24,480. For every $2 earned above this threshold, $1 will be deducted from their Social Security benefits. This represents an increase from the previous year's limit.

For those who will reach their full retirement age at some point during 2026, a different earnings limit applies to the months before they attain this milestone. This limit is set at $65,160 for 2026. For earnings above this amount before reaching full retirement age, benefits will be reduced by $1 for every $3 earned.

Once an individual reaches their full retirement age, there is no longer any limit on their earnings, and their Social Security benefits will not be reduced regardless of how much they earn. It is important to note that any benefits withheld due to exceeding earnings limits are not permanently lost. Instead, they are effectively credited back, leading to a recalculation of the monthly benefit amount at full retirement age, which can result in a higher lifetime benefit.