Key Points
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If you work while collecting Social Security benefits, you may not get to keep all of your retirement income.
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While you can work as much as you want after full retirement age, you forfeit benefits if you’re younger.
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The good news is that you get back the benefits you missed later in life.
Many people who claim Social Security do so because they’ve retired and they’re ready to stop working. In some cases, however, you may want to double-dip and both work and collect benefits.
The problem is, if you try to do that before you’ve reached your full retirement age (FRA), your work could affect the amount of Social Security you actually get to bring home. Here’s what you need to know about the rules before you start applying for jobs while getting your benefits.
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Work rules change after full retirement age
The first thing to know is that work rules change after full retirement age. Post-FRA, you can work as much as you want, and you still get the full amount of your Social Security benefits.
In fact, if you are working and earn more than you did earlier in your career (on an inflation-adjusted basis), you could end up increasing your benefit.
Your benefit could increase because the Social Security formula provides benefits equal to a percentage of your earnings in your 35 highest-earning years. Earning more now could allow you to replace some lower-earning years, giving your income a boost.
You may forfeit some Social Security if you work before FRA
Things are different if you work before your full retirement age. In this situation, you will lose some of your Social Security income if you earn too much. Specifically, in 2026:
- You lose $1 in benefits for every $2 in extra income if you won’t hit FRA all year and you earn above $24,480.
- You lose $1 in benefits for every $3 in extra income once your income exceeds $65,160 if you will reach FRA during the year you are working.
The benefits are not lost forever. They are temporarily forfeited. However, you must make sure you report your earnings to Social Security so the correct amount of your benefits can be withheld.
Your Social Security benefit is recalculated if you lost benefits due to work
When your Social Security benefits are withheld because you work too much, you get credit for that later. When you have reached your full retirement age, benefits are recalculated. For any months your Social Security check was withheld due to earning too much, you are credited back the early filing penalty that had applied.
For example, if you claimed Social Security 50 months early but you ended up having 10 months of benefits withheld due to earning too much, you will only have 40 months of early filing penalties reducing your benefit.
This can be a good thing, since you can get higher benefits later when you may need the income. You just need to make sure you understand these rules in your retirement planning process, so you aren’t caught off guard and find yourself with less money than you expect.
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