Key facts
- Individuals can receive Social Security retirement benefits while working.
- Benefits are reduced if earnings exceed annual limits before reaching full retirement age.
- In 2026, the earnings limit is $24,480 for those under full retirement age all year.
- A higher limit of $65,160 applies in the year of reaching full retirement age, for earnings before that month.
- Once full retirement age is reached, there is no limit on earnings and benefits are not reduced.
- Withheld benefits can be recouped through future benefit recalculations.
Individuals can continue to work while receiving Social Security retirement benefits, but earnings above certain thresholds before reaching full retirement age can lead to a reduction in benefit payments. For the entirety of 2026, if a beneficiary is younger than full retirement age, benefits will be reduced by $1 for every $2 earned above the annual limit of $24,480. In the year an individual reaches full retirement age, a different limit applies: $65,160 for earnings before the month they reach that age. For every $3 earned above this pre-retirement age limit, benefits are reduced by $1. However, once an individual reaches their full retirement age, there is no longer any limit on their earnings, and their benefits will not be reduced. The Social Security Administration notes that any benefits withheld due to exceeding earnings limits are not permanently lost. These amounts are used to recalculate the beneficiary's monthly benefit, potentially increasing it retroactively. Earnings that count towards the limit include wages from employment, bonuses, commissions, and vacation pay, but exclude income from pensions, investments, annuities, and other retirement benefits. Beneficiaries are advised to report any changes in their earnings to the Social Security Administration promptly.