Many people who claim Social Security benefits continue to work. If you are working while collecting Social Security, 2026 brings changes you should watch for. This article explains how the rules work today, what may change in 2026, and practical steps to protect your benefits.
What the 2026 changes mean for working while collecting Social Security
The Social Security Administration (SSA) updates several thresholds and rules each year. For 2026, expect official announcements about annual earnings limits, cost-of-living adjustments (COLA), and possible administrative updates. Some changes are automatic and predictable; others depend on Congressional action.
Key points to monitor for 2026:
- Annual earnings limit announcements from the SSA.
- Changes to the calculation of withheld benefits if you exceed limits before full retirement age.
- Any new guidance on reporting self-employment income while collecting benefits.
Why these updates matter
If you earn above the SSA’s permitted amount, the agency may temporarily withhold part of your monthly benefit. That withheld amount is not always lost: SSA often recalculates benefits at full retirement age to credit months of withheld benefits.
Understanding 2026 updates can help you avoid surprises and plan whether to work, reduce hours, or delay benefits.
How the earnings test works now when working while collecting Social Security
The retirement earnings test applies to people below full retirement age (FRA) who receive Social Security retirement benefits and continue to work. There are two standard rules:
- Before the calendar year you reach FRA: SSA deducts $1 from benefits for every $2 earned above the annual limit.
- In the calendar year you reach FRA: SSA deducts $1 for every $3 earned above a higher limit, but only for earnings before the month you reach FRA.
After you reach FRA, there is no earnings test and your benefits will not be withheld no matter how much you earn.
What changes are likely in 2026
Most year-to-year changes are adjustments to the earnings limits and COLA tied to national wage indexes and inflation. These adjustments affect the dollar amounts that trigger benefit withholding.
Legislative changes that alter the structure of the earnings test would require Congress. Stay updated with the SSA and trusted financial news sources for any new legislation in 2025 and early 2026.
Practical steps to plan for 2026 when working while collecting Social Security
Follow these steps to reduce surprises from 2026 rule changes and protect your financial plan.
- Check SSA announcements in October or November of the prior year for the new annual earnings limit and COLA figures.
- Estimate your 2026 earnings now. If you expect to be above the new limit, consider reducing hours or deferring work to lower income.
- Know your full retirement age and how close you are to it. Withholding rules change in the year you reach FRA.
- Keep accurate records of wages and self-employment income. Report changes promptly to SSA to avoid overpayments you must repay.
- Consult a tax or retirement planner to model how working impacts your overall retirement income and taxes.
Options if you might exceed the 2026 earnings limit
- Delay Social Security benefits until after you reach FRA to avoid the earnings test entirely.
- Switch to part-time work or adjust your schedule to stay under the limit.
- Consider saving additional earnings into tax-advantaged accounts to smooth income across years.
Case study: A real-world example
Example: Maria is 63 and started Social Security benefits at 62. She plans to work part-time in 2026. She expects $30,000 in earnings for the year and is waiting for SSA’s 2026 earnings limit announcement.
If the 2026 pre-FRA limit ends up near past-year levels, Maria may have some benefits withheld. However, when she reaches FRA at 66, SSA will recalculate her benefit to credit months where benefits were withheld, increasing her future monthly benefit.
Action Maria took: she asked her employer for a slightly reduced schedule to keep annual earnings below the likely limit, and she scheduled a meeting with a financial planner to confirm the best timing for switching to full-time work.
If the SSA withholds benefits because you earned too much, those withheld dollars are often credited back when you reach full retirement age through a recalculation, so they are not always permanently lost.
How to stay informed about 2026 Social Security rule changes
Use these trusted sources for reliable updates:
- Social Security Administration website and press releases.
- Direct notices from SSA sent by mail when your benefit is affected.
- Financial advisors and certified planners who follow Social Security policy.
Record keeping and proactive planning are the best defenses against unexpected withholding. Monitor SSA updates in late 2025 and early 2026 and adjust your work or benefit strategy based on the official figures.
Final checklist before 2026
- Confirm your expected 2026 earnings and compare to SSA’s announced limit.
- Decide whether to continue working, reduce hours, or delay benefits.
- Keep copies of pay stubs and tax returns in case SSA requests verification.
- Schedule a review with a financial professional if your situation is complex.
Knowing how the rules apply to you and preparing for SSA announcements will reduce surprises in 2026. If you are unsure how changes affect your benefits, contact SSA or a qualified advisor before making big decisions.
