For many Americans, retirement isn’t a sudden transition but a gradual one. Many Americans leave their full-time careers to take part-time jobs, freelance, consult in their fields, or pursue new opportunities that generate income. But if you’re also drawing Social Security at the same time, the federal government has rules about how much you can earn before your benefits take a hit.

If you’re collecting Social Security while still working, it’s important to understand how your earnings can affect your benefits.

Your Benefits Can Be Reduced

Social Security allows you to work while receiving benefits. However, there are limits if you claim benefits before reaching your full retirement age (FRA).

This changes from year to year, but in 2026, individuals who are younger than full retirement age for the entire year can earn up to $24,480 without affecting their benefits. Once earnings exceed that amount, Social Security withholds $1 for every $2 earned above the limit.

The threshold is higher in the year you reach your full retirement age. If you hit full retirement age by December 31, 2026, you can earn up to $65,160 before any reduction kicks in. Beyond that threshold, Social Security withholds $1 in benefits for every $3 earned above the limit.

Once you actually reach full retirement age, the earnings limit goes away. You can earn as much as you want, and your monthly benefit won’t be touched.

Also note that any withheld benefits aren’t permanently lost. The Social Security Administration (SSA) recalculates your payment at full retirement age to account for the months when benefits were withheld, and your monthly check gets adjusted upward.

Working Longer Can Increase Your Benefit

If you’re still working and don’t need Social Security income right away, think about holding off on claiming.

Benefits grow approximately 6-8% for each year you delay past 62. Delaying also means sidestepping the earnings limit entirely.

Simple Ways to Get More out of Social Security

Many people spend decades saving for retirement but don’t fully consider how Social Security fits into their overall financial picture. The earlier you understand your options, the more flexibility you’ll have when deciding when to retire and when to claim benefits.

Here are a few planning tips that can make a real difference:

• Work 35 years if you can. SSA calculates your benefits using your highest 35 earning years. If you earn more later in your career, those years could potentially replace lower-earning years.
• Know your full retirement age. Claiming before FRA means a permanently reduced benefit. For anyone born in 1960 or later, the FRA is 67.
• Check your earnings record. You can log into ssa.gov and verify that your work history is accurate. Errors happen, and a mistake in your record could result in a lower benefit.

Retirement looks different for everyone, but if you plan to work while receiving Social Security, make sure you understand the earnings limits that apply before FRA.