Can You Work While Collecting Social Security? What to Know in 2026

Yes, you can work while collecting Social Security retirement benefits. However, if you have not reached your full retirement age and earn more than the Social Security Administration’s annual limit, some of your benefits may be temporarily withheld. Once you reach full retirement age, you can earn any amount without your work income reducing your Social Security benefit.

The rules sound simple, but the interaction between earnings, taxes, Medicare premiums, and the age at which you claim benefits can make the decision more complicated. Understanding those factors can help you avoid surprises and make a more informed retirement-income decision.

What is the Social Security earnings limit for 2026?

The amount you can earn without having Social Security benefits withheld depends on whether you have reached your full retirement age.

For 2026:

• If you are under full retirement age for the entire year, you can earn up to $24,480 before benefits are withheld.
• If you reach full retirement age during 2026, you can earn up to $65,160 during the months before reaching full retirement age.
• Beginning with the month you reach full retirement age, there is no earnings limit.

These limits generally increase periodically. The Social Security Administration publishes updated figures each year. Social Security Administration: Receiving Benefits While Working 

What happens if you earn more than the Social Security limit?

If you are under full retirement age for all of 2026, Social Security generally withholds $1 in benefits for every $2 you earn above $24,480.

During the year in which you reach full retirement age, Social Security generally withholds $1 for every $3 you earn above $65,160. Only earnings received before the month you reach full retirement age count toward this higher limit.

Starting with the month you reach full retirement age, your earnings no longer reduce your Social Security retirement benefits.

Example: Working before full retirement age

Suppose you are 64 throughout 2026 and receive $2,000 per month in Social Security retirement benefits. Your annual benefit would be $24,000.

You also earn $40,000 from a job.

Your earnings exceed the 2026 limit by:

$40,000 − $24,480 = $15,520

Social Security would withhold approximately:

$15,520 ÷ 2 = $7,760

That does not necessarily mean each monthly payment would simply be reduced by an equal amount. Social Security may withhold entire monthly benefit payments until the required amount has been withheld.

Example: Reaching full retirement age in 2026

Suppose you reach full retirement age in October 2026 and earn $72,000 from January through September.

Your earnings before the month you reach full retirement age exceed the applicable limit by:

$72,000 − $65,160 = $6,840

Social Security would withhold approximately:

$6,840 ÷ 3 = $2,280

Beginning in October, you can earn any amount without the retirement earnings test reducing your benefit.

Are benefits withheld because of work permanently lost?

No. Social Security benefits withheld under the retirement earnings test are not necessarily lost forever.

When you reach full retirement age, the Social Security Administration recalculates your monthly benefit to account for the months in which benefits were withheld. This adjustment can result in a higher monthly payment going forward. Social Security Administration: Retirement Earnings Test

However, this does not make the timing decision irrelevant. Having payments withheld today can affect your short-term cash flow, taxes, investment withdrawals, and overall retirement plan. It is important to distinguish between a permanent early-filing reduction and benefits temporarily withheld because of excess work earnings.

What counts as earnings for the Social Security earnings test?

Social Security generally counts:

• Wages from employment
• Bonuses and commissions earned through employment
• Net earnings from self-employment

Social Security generally does not count:

• Pension income
• IRA or 401(k) withdrawals
• Investment interest
• Dividends
• Capital gains
• Annuity payments
• Veterans benefits
• Other government or military retirement benefits

This distinction is important. You may have substantial retirement income and still have little or no “earned income” for purposes of the Social Security earnings test.

However, retirement-account withdrawals and investment income can still affect the federal taxation of your Social Security benefits and potentially your Medicare premiums.

What is full retirement age?

Your full retirement age, sometimes called FRA, is the age at which you become eligible for your unreduced Social Security retirement benefit.

Your full retirement age depends on your birth year:

For example, someone born in 1959 reaches full retirement age at 66 and 10 months. Someone born in 1960 or later reaches it at age 67. Social Security Administration: Full Retirement Age

Full retirement age is not necessarily the same as the age at which you retire from work. You can stop working before FRA, at FRA, or after FRA. You can also begin Social Security while still working.

Can you work full time and collect Social Security?

Yes. You can work full time and collect Social Security retirement benefits.

If you have reached full retirement age, there is no limit on how much you can earn from employment while receiving your full benefit.

If you are younger than full retirement age, full-time earnings may cause some or all of your benefits to be withheld. Whether that happens depends on your annual earnings, your monthly Social Security benefit, and when you reach full retirement age.

A person with higher earnings may have all Social Security payments withheld for part or all of the year. That does not mean the person is no longer eligible for Social Security. It means the retirement earnings test is being applied.

Can working increase your future Social Security benefit?

It can.

Social Security generally calculates your retirement benefit using your highest 35 years of covered earnings. If your current earnings are higher than one of the years previously used in your calculation, Social Security may replace the lower year with the new, higher-earning year.

That could increase your future benefit.

Continuing to work can be especially helpful if you have fewer than 35 years of covered earnings. In that situation, Social Security may use zero-earnings years in the calculation. Adding another year of earnings could replace one of those zero years.

Social Security normally reviews earnings records and adjusts benefits when additional earnings result in a higher payment.

Will working make your Social Security taxable?

Working can cause more of your Social Security benefits to become subject to federal income tax.

The IRS uses a calculation sometimes called “combined income.” It generally includes:

• Adjusted gross income
• Tax-exempt interest
• One-half of your Social Security benefits

For an individual filer:

• Combined income between $25,000 and $34,000 may cause up to 50% of benefits to be taxable.
• Combined income above $34,000 may cause up to 85% of benefits to be taxable.

For a married couple filing jointly:

• Combined income between $32,000 and $44,000 may cause up to 50% of benefits to be taxable.
• Combined income above $44,000 may cause up to 85% of benefits to be taxable.

This does not mean that you pay an 85% tax rate on Social Security. It means up to 85% of your Social Security benefit may be included in your federally taxable income. The actual tax depends on your federal income-tax bracket and the rest of your return. IRS: Social Security Benefits May Be Taxable 

Does South Carolina tax Social Security benefits?

South Carolina does not tax Social Security retirement benefits.

Even if part of your benefit is taxable on your federal return, that amount is generally exempt from South Carolina individual income tax. South Carolina Department of Revenue: Individual Income Tax FAQs

However, wages, retirement-account distributions, pension income, and investment income may receive different tax treatment. South Carolina also provides certain retirement-income deductions, subject to its rules and eligibility requirements.

Retirees in Myrtle Beach and throughout the Grand Strand should consider both federal and South Carolina tax consequences when coordinating employment income with Social Security and retirement-account withdrawals.

Can working affect your Medicare premiums?

Working does not directly reduce your Social Security benefit after full retirement age, but higher income can affect what you pay for Medicare.

Medicare Part B and Part D premiums can include an Income-Related Monthly Adjustment Amount, commonly known as IRMAA. This additional charge is generally based on modified adjusted gross income from two years earlier.

For example, higher income in one year could increase Medicare premiums two years later. Wages, Roth conversions, capital gains, retirement-account distributions, and other income can all contribute to this calculation.

This is one reason the decision to keep working should be evaluated as part of a broader retirement-income and tax plan—not solely by looking at the Social Security earnings limit.

Is it better to claim Social Security while working or wait?

There is no single answer for everyone.

Claiming while working may make sense if:

• You need additional income now.
• Your earnings are below the applicable limit.
• You have health concerns that affect life expectancy.
• You want to reduce withdrawals from investments.
• Your spouse or other dependents may become eligible for benefits based on your record.

Waiting may deserve consideration if:

• Your work income already covers your living expenses.
• The earnings test would cause most or all of your benefits to be withheld.
• You want to increase your future monthly benefit.
• You expect a longer retirement.
• A larger benefit could improve the financial security of a surviving spouse.
• You want to manage the federal taxation of Social Security more carefully.

For people born in 1960 or later, claiming at age 62 can permanently reduce the scheduled retirement benefit compared with claiming at the full retirement age of 67. On the other hand, delaying beyond full retirement age can earn delayed retirement credits until age 70. There is generally no additional benefit from delaying past age 70.

The appropriate decision should consider cash flow, health, longevity, taxes, spousal benefits, survivor benefits, employment income, and existing retirement assets.

What if you retire in the middle of the year?

A special monthly earnings rule may help during the first year you retire.

This rule can allow you to receive Social Security for months in which the Social Security Administration considers you retired, even if your total earnings earlier in the calendar year exceeded the annual limit.

In 2026, a person under full retirement age for the entire year may generally be considered retired in a month when earnings are $2,040 or less, assuming the person does not perform substantial services in self-employment.

For someone reaching full retirement age during 2026, the applicable monthly amount before FRA is generally $5,430. Social Security Administration: Special Earnings Limit Rule

This rule can be particularly important for someone who earns a substantial salary early in the year, retires in the summer or fall, and then begins receiving Social Security.

Frequently asked questions

Can I collect Social Security at 62 and still work?

Yes. However, if you are under full retirement age, your benefits may be withheld when your earnings exceed the annual limit. Claiming at 62 also normally results in a permanently lower monthly benefit than waiting until full retirement age.

How much can I earn in 2026 while collecting Social Security?

If you are under full retirement age for the entire year, the 2026 limit is $24,480. In the year you reach full retirement age, the limit is $65,160 for earnings received before the month you reach FRA. After reaching FRA, there is no earnings limit.

Does Social Security count IRA withdrawals as earnings?

No. IRA and 401(k) withdrawals generally do not count as earned income under the Social Security retirement earnings test. They can, however, affect federal taxes and Medicare premiums.

Does an annuity count toward the Social Security earnings limit?

Annuity income generally does not count toward the retirement earnings limit because it is not income from work. It may still affect your taxable income and other areas of your retirement plan.

Are Social Security benefits taxed in South Carolina?

No. South Carolina does not tax Social Security benefits, even when a portion is included in federally taxable income.

Do I need to stop working before applying for Social Security?

No. You do not have to stop working before applying. The effect of continued employment depends on your age and earnings.

Should I notify Social Security if my expected earnings change?

Yes. If you are receiving benefits before full retirement age and your expected earnings change, notify Social Security promptly. An inaccurate estimate may result in too many benefits being withheld or an overpayment that must later be repaid.

The bottom line

You can work and receive Social Security at the same time. The key question is how your age and earnings affect your payments.

Before full retirement age, earning more than the applicable annual limit may cause benefits to be temporarily withheld. During the year you reach full retirement age, a higher limit applies. Starting with the month you reach FRA, you can earn any amount without work income reducing your Social Security retirement benefit.

The decision involves more than the earnings test. Working may affect federal taxes, Medicare premiums, investment withdrawals, spousal planning, and the long-term amount of your Social Security benefit.

A coordinated retirement-income plan can help you decide when to claim Social Security, how long to work, and which accounts to use for income along the way.

This article is for general educational purposes only and should not be considered individualized investment, tax, or legal advice. Social Security and tax rules may change. Consult the Social Security Administration and qualified financial and tax professionals regarding your circumstances.