Working while you are drawing Social Security? There is one number you need for 2026: $24,480.
The limit and what it does
That is the annual earnings limit for 2026, and it applies if you are under your full retirement age — which is 67 for anyone born in 1960 or later.
Earn more than $24,480 in a year and Social Security starts holding money back.
How much they hold
One dollar for every two dollars you earn over the limit.
So if you make $30,000, you are $5,520 over. They would hold back $2,760 for the year.
The year you reach full retirement age
The rules loosen considerably.
- The limit jumps to $65,160
- They hold back only $1 for every $3 over
- They only count what you earn before the month you reach full retirement age
And after that
Once you reach full retirement age, there is no limit at all. Earn whatever you want and your check is not touched.
The part almost nobody knows
That money they held back is not gone.
Once you reach full retirement age, Social Security recalculates your benefit and pays it back to you in a bigger monthly check for the rest of your life.
It is a delay, not a penalty. People turn down work or turn down overtime because they believe the money vanishes. It does not.
Two things that catch people out
It counts earned income only — wages and self-employment. Pensions, IRA withdrawals, investment income and rental income do not count toward this limit.
Excess earnings can affect the whole family. If someone is drawing on your record — a spouse or a child — the withholding is spread across everyone’s benefit, not just yours.
Worth knowing before you decide
If you are thinking about claiming early and continuing to work, this is the number to run first. Sometimes the answer is that the earnings test barely touches you. Sometimes it changes the whole plan.
Want to work out what it would mean on your numbers? Call or text me at 941-412-2362.
Educational only. Not connected with or endorsed by the U.S. government or the federal Medicare program.
Falcon Life and Health is not connected with or endorsed by the United States government or the federal Medicare program. We do not offer every plan available in your area. Any information we provide is limited to those plans we do offer in your area. Please contact Medicare.gov or 1-800-MEDICARE to get information on all of your options.