Workers claiming Social Security before full retirement age face benefit reductions if earnings exceed $24,480 in 2026.
Early Social Security claimants could see benefits reduced if their earnings exceed specific thresholds. In 2026, those under full retirement age (FRA) lose $1 in benefits for every $2 earned over $24,480. For those reaching FRA in 2026, the threshold rises to $65,160, with a $1 reduction for every $3 earned above that limit before their birth month.
The earnings test applies only to those claiming benefits before their FRA, which is 67 for most individuals. While the reduction may seem permanent, benefits are recalculated at FRA to account for withheld amounts. However, the immediate impact can strain personal savings or reliance on job income.
The rule aims to discourage early claiming while working but may inadvertently push some to delay applications. The thresholds adjust annually, reflecting changes in wage levels and inflation.