4. Working While Collecting? The Earnings Limit Went Up

If you are collecting Social Security before full retirement age and still working, the amount you can earn before your benefits are temporarily reduced has increased for 2026.

For workers who will not reach FRA at any point in 2026, the annual earnings limit is now $24,480—up from $23,400 in 2025. If you earn above this, the SSA withholds $1 in benefits for every $2 earned over the limit. For workers who will reach FRA during 2026, a higher limit of $65,160 applies for the months before their birthday, with $1 withheld for every $3 over that threshold.

The key thing most retirees forget: benefits withheld due to excess earnings are not lost forever. Once you reach full retirement age, the SSA recalculates your benefit to give you credit for the months it withheld payments, gradually restoring those amounts over time.

Once you reach full retirement age, there is no earnings limit at all. You can earn as much as you want with zero reduction in your Social Security benefit.

2026 Earnings Limits at a Glance: Under FRA all year: $24,480 ($1 withheld per $2 over limit). Reaching FRA in 2026: $65,160 for months before birthday ($1 withheld per $3 over limit). At or past FRA all year: No limit whatsoever.