Change #5 The Earnings Test Limits Increase for Working Beneficiaries
What Changed
Many Americans choose to continue working — either part-time or full-time — after beginning to collect Social Security retirement benefits, particularly those who claim before reaching their full retirement age.
For those beneficiaries, the Social Security earnings test determines how much of their benefit may be temporarily withheld based on their work income. In 2026, both earnings test thresholds increased, allowing working beneficiaries to earn more before any benefits are withheld.
For beneficiaries who will not reach full retirement age at any point during 2026, the earnings limit rises to $24,480 (up from $23,400 in 2025). For every $2 earned above this threshold, Social Security withholds $1 in benefits. For example, a beneficiary earning $40,000 from work in 2026 would have their annual Social Security benefits reduced by $7,760 — half the difference between $40,000 and $24,480.
For beneficiaries who will reach full retirement age during 2026, a more generous threshold applies: earnings up to $65,160 (up from $62,160 in 2025) are exempt from the earnings test, and benefits are withheld at a rate of only $1 for every $3 earned above the limit.
Once a beneficiary reaches their full retirement age, the earnings test no longer applies — they can earn any amount without affecting their Social Security benefits.
Key Insight: Benefits temporarily withheld under the Social Security earnings test are not lost — they are recredited to your record when you reach full retirement age, resulting in a higher monthly benefit going forward. The net lifetime impact depends on how long you live after reaching FRA.
What about the money that the government borrow from Social Security, that never got paid back?
Always Honored: Every single time Social Security has needed to “cash in” those bonds to pay benefits, the Treasury has paid them in full. The government has never defaulted on these payments. This is a myth or conspiracy theory that the loans have not been paid back.
As citizens we must plan ahead. Hells bells! Ive been working since a teenager, went to college nights. I have basically worked my ass off my entire life. Even thru losing 2 houses during my divorce at age 37 and starting all over again financially, I still managed to help my 2 kids become very independent with one getting her PhD paid off at age 33 w all her scholarships etc, and the other serving the military then bachelor’s degree. Both very successful buying homes by age 30 or before. Then I retired from my state job at 55 collecting that pension, creating code approved basement apartment, other rentals I have created and back to work full time at age 60 for non state work to make extra money for big house projects and travel. Try to stay healthy w exercise and eating right most of the time. Now I intend to work full time til age 67 at least. Im single and loving it. I make close to $100,000 a year with all my different sources of income I created. My 60s are now for full time work w lots of vacations/travel plans and big house projects. I dont plan on collecting soc sec til I’m age 70 for maximum payout. Might work part time then.
Not true, the government did not put that money back,