Working While on Social Security? This Rule Could Catch You Off Guard
Yahoo Finance ·
Working during retirement could be a great decision for both your finances and your general well-being. A part-time job can provide extra income to cover rising expenses and make it easier to keep up with inflation. But beyond the financial benefits, working can also help you stay socially connected, add structure to your days, and relieve the boredom that may come with leaving the workforce. But if you're collecting Social Security , it's important to know about the program's earnings test. If you don't understand how it works, you could end up with reduced monthly benefits -- and a truly unwanted financial surprise. Social Security's earnings test only applies if you've claimed benefits before reaching full retirement age , which is 67 for folks born in 1960 or later. The earnings test dictates that you can earn a certain amount of money each year from a job before having benefits withheld. In 2026, if you don't reach full retirement age by the end of the year, you can earn up to $24,480 without negatively affecting your benefits. Once your earnings exceed that limit, the Social Security Administration (SSA) withholds $1 in benefits for every $2 you earn.
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