Retirees face a $24,480 earnings limit before full retirement age
The Social Security Administration allows beneficiaries to work while collecting benefits, but with certain limitations. Before reaching full retirement age, retirees are subject to an earnings limit, which is $24,480 in 2026.
For every $2 earned above this limit, a certain amount is withheld from benefits. Once full retirement age is reached, beneficiaries can earn any amount without having benefits withheld, even with a high salary like $200,000.
Working in retirement can be beneficial for managing expenses and providing structure. Retirees can claim Social Security as early as age 62, but working before full retirement age will trigger the earnings limit.
The earnings limit changes annually, and retirees should be aware of this rule to avoid having their benefits withheld.