Early Social Security claimants earning over $24,480 in 2026 face benefit reductions under a little-known earnings test rule.
Retirees claiming Social Security benefits before full retirement age (FRA) could see reduced payouts if their job earnings exceed $24,480 in 2026. The rule, known as the earnings test, withholds $1 in benefits for every $2 earned above the threshold for those under FRA.
For individuals reaching FRA in 2026, the limit rises to $65,160, with $1 withheld for every $3 earned above that amount before their birth month. The FRA for those born in 1960 or later is 67. The rule does not apply to earnings after reaching FRA.
The impact varies based on income levels and reliance on Social Security, potentially disrupting retirement planning for those unaware of the provision.