For many Americans in their 60s, retirement doesn’t always mean slowing down. Some see it as a chance to start something new, like a small business, a passion project, or a flexible part-time job. For others, working is simply necessary, as Social Security benefits alone don’t always stretch far enough to cover groceries, rising healthcare costs, and family expenses.
But if you’re planning to work while collecting benefits, 2026 is shaping up to bring a few big adjustments that could change how much you actually take home.
How Social Security and Work Interact
Social Security was created to be a safety net—not a full paycheck replacement. If you claim benefits before reaching your full retirement age (FRA), which is between 66 and 67, depending on your birth year, the government sets limits on how much you can earn from work before they start trimming your monthly checks.
How it works right now (in 2025)
If you’re under FRA all year: You can earn up to $23,400 from work. Go over that, and Social Security withholds $1 in benefits for every $2 you earn above the limit.
If you reach FRA during the year: The earnings limit jumps to $62,160, and the penalty drops to $1 withheld for every $3 you earn above the limit. Once you hit your birthday and reach FRA, you can earn as much as you want, no more penalties.
But don’t panic if you lose some benefits before FRA. Social Security isn’t pocketing that money forever. When you reach full retirement age, your monthly benefit is recalculated to give you credit for the months your checks were reduced or withheld. Think of it as a delayed bonus.
Starting in 2026, both earnings limits are set to rise
For those under FRA all year: The limit is projected to rise from $23,400 to $24,360.
For those reaching FRA during the year: The limit is expected to jump from $62,160 to $64,800.
That means you’ll be able to earn a bit more from work before Social Security starts trimming your checks, about $960 more if you’re under FRA all year, and $2,640 more if you reach FRA during the year. For many, that’s a meaningful difference—enough to cover a few extra bills, a weekend getaway, or a little more breathing room in your budget.
Why Are These Limits Changing?
The Social Security Administration adjusts these thresholds most years to keep pace with national wage growth. It’s their way of making sure the rules don’t get stuck in the past while the cost of living keeps marching forward. While the official numbers for 2026 haven’t been finalized yet, these projections are based on current trends and are unlikely to change dramatically.
What Does This Mean for Your Retirement Plans?
If you’re planning to work and collect Social Security before FRA, these changes could give you more flexibility. Maybe you can take on a few extra hours at your part-time job or say “yes” to that consulting gig without worrying about losing as much in benefits.
But, and this is a big but, if you blow past the new limits, you’ll still see your Social Security checks reduced or paused. That’s why it’s crucial to plan ahead and understand how your earnings will interact with your benefits.
Also read: New lawsuit demands answers on Social Security changes and transparency
Should You Claim Social Security Early If You Plan to Work?
This is the million-dollar question (or at least the several-thousand-dollar one). Claiming Social Security before FRA means your monthly benefit is permanently reduced, even after you reach FRA. If you’re going to keep working and your earnings will push you over the limit, you might lose out on both your full benefit and some of your checks in the short term.
On the other hand, if you need the income now or if you have health concerns that make waiting less practical, claiming early might still make sense. It’s a personal decision, and there’s no one-size-fits-all answer.
Other Factors to Consider
Taxes: Remember, your Social Security benefits may be taxable if your combined income (including wages, Social Security, and other sources) exceeds certain thresholds.
Spousal Benefits: If you’re married, your claiming strategy could affect your spouse’s benefits, too. It’s worth running the numbers or talking to a financial advisor.
Long-Term Impact: The longer you wait to claim Social Security (up to age 70), the higher your monthly benefit will be. If you can afford to wait, it often pays off in the long run.
Also read: Trump’s new tariffs could bring bigger Social Security checks—but there’s a catch
Tips for Navigating the New Rules
- Track Your Earnings: Keep a close eye on your work income, especially if you’re close to the new limits.
- Plan Your Claiming Strategy: Consider whether it makes sense to claim early or wait until FRA (or later).
- Consult a Pro: A financial advisor or Social Security expert can help you map out the best approach for your unique situation.
- Stay Informed: The Social Security Administration updates these numbers every year. Bookmark their website or sign up for updates so you’re always in the know.
Read next:
- Why you won’t see a Social Security SSI payment in November—here’s what to know
- Get ready for a Social Security update: When the 2026 COLA will be announced
- As shutdown continues, key deadlines approach for healthcare and travel
Are you planning to work while collecting Social Security? Have you run into any surprises with the earnings limits? Do you have tips for others navigating this tricky territory? Share your stories, questions, and advice in the comments below.
The GrayVine
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