Working While You're Collecting Social Security

Epoch Times ^ | 03/23/2026 | Anne Johnson

[SeekAndFind]

Choosing when to collect Social Security retirement benefits is a consequential decision. It will affect your finances for the rest of your life. You’ll be able to claim reduced retirement benefits as early as 62.

In fact, in 2022, nearly 30 percent of new Social Security beneficiaries began receiving benefits at age 62, according to the Bipartisan Policy Center. The full retirement age (FRA) for those born in 1960 or later is 67, according to the Social Security Administration (SSA). Although you can claim the benefits early, there are drawbacks. And one of them relates to any continued employment.

Social Security Earnings Test

You can receive Social Security or survivors’ benefits and work at the same time. But the Social Security earnings test will be applied to you.

According to the SSA, if you start collecting retirement benefits before FRA and earn more than $24,480 in 2026, you will be penalized. The SSA deducts $1 from your benefits for every $2 you earn above $24,480.

If you reach FRA in 2026, the SSA deducts $1 from your benefits for every $3 you earn above $65,160 until the month you reach FRA.

For example, you file for benefits in January 2026, and your payment is $600 monthly, or $7,200 annually. But during 2026, you plan to work and earn $26,080. You will be $1,600 above the limit. The SSA would withhold $800 of your Social Security benefits.

How Do You Pay the Penalty?

If you file for Social Security benefits at 62 in January 2026, and your benefit is $600 a month, or $7,200 per year. During 2026, you plan to work and earn $26,080, which is $1,600 above the limit. The SSA would withhold $800 of your Social Security benefits ($1 for every $2 you earned over the limit).

To do this, they would withhold all $600 benefits in January and all $600 benefits in February to take the $800. Keep in mind that the SSA does not make partial payments. So, they would take all the February benefits. In other words, you would go two months without benefits. But you would receive all your $600 benefit in March.

The SSA would pay you the additional $400 they took from February 2026 back to you in January 2027.

The SSA doesn’t actually know your earnings in advance. They rely on three items: your estimate when you apply; your employer’s wage reports; and your tax return later.

Often, they don’t know you’ve gone over the maximum until the following year. At that point, they would withhold the overage.

First-Year Rule Saves Money

Sometimes, people younger than FRA begin receiving benefits in the middle of the year. At that point, they may have already exceeded the yearly limit.

According to the SSA, under the first-year rule, you can receive full Social Security benefits for any whole month you are retired, and earnings are below the monthly limit. In other words, the limit starts the month you start receiving benefits, not for the prior months when you may have gone over the limit.

So, if you started receiving benefits in July 2026, you must be under the limit from July through December 2026. But you don’t have to be below the limit from January 2026 through June 2026.

This rule allows you to work earlier in the year, retire midyear, and still collect Social Security immediately without losing benefits earned before you started collecting them.

Social Security Refunds Penalties at FRA

Although some of your benefits may be reduced if you work, they will be returned later. According to the SSA, if some of your benefits are withheld because of your earnings, your monthly benefit will increase starting at FRA. It will take into account those months when benefits were withheld.

Earnings Drawback to Collecting Social Security Before FRA

Whether or not you’re working, if you start drawing your Social Security benefits before FRA, you’ll receive less money.

If you start receiving benefits early, your benefits will be reduced by a small percentage for each month before your FRA. According to the SSA, those born in 1960 or later will have their benefits reduced by 30 percent if they retire at 62.

So, if your FRA benefit is $1,000, because of the reduction, you’ll receive $700 if you start benefits at age 62. A spouse’s benefit is reduced by 35 percent, which brings it down to $325, according to the SSA.

How to Contact the Social Security Association

The best and most convenient way to contact the SSA is to visit www.ssa.gov. You’ll be able to use their services and receive information. If you live outside the United States, visit www.ssa.gov/foreign to access online services.

If you don’t have internet access, call 1-800-772-1213 or the TTY number, 1-800-325-0778 if you’re deaf or hard of hearing. They recommend calling between Wednesday and Friday and later in the month when it’s less busy.

* * *

---

TOPICS: Culture/Society; Government; News/Current Events
KEYWORDS: socialsecurity; taxes

[mythenjoseph]

I took it as soon as I was eligible. Apply 3 months prior to your 62nd birthday so you won’t miss a penny. The grifters in D.C. do not care about you and is shown how they so easily allow non-contributors to obtain S.S. and the outright theft of the numerous programs they should not be involved in. Never did I believe our own people who choose to run for public office would end up so devious and allow such blatant theft. If our Government ran at even 70% efficiency every LEGAL American would get a check for just being a citizen at tax refund time...

[Texas Eagle]

I know too many people who died last just before they qualified before Socialist Security which means they paid into Socialist Security for 40+ years and never recouped a dime.

Obviously, everybody has to decide what he or she or they/them is best for himself or herself or theyselves/themselves.

I subscribe to the "A bird in the hand is worth two in the bush" philosophy.

[ChronicMA]

in theory the money lost by those who die early goes to those who live longer than expected. the program is not just a “get back what you put in” program.

[KingofZion]

This is a good summary and the reason that those of us who are still working at age 62 have zero incentive to file for social security until we retire.

As for dying before collecting I would check your genetics. If parents and grandparents lived into their 90s (like mine) or later than you may want to delay collecting. Assuming you can still work or have other income.

[dayglored]

I had the good fortune to have a good paying job in my 60’s and early 70’s, so instead of retiring and taking my Social Security in my 60’s, I waited and kept my full-time job, where my salary was still increasing. As a result when I did start taking Social Security at 70 it was at a very healthy level, even though I am still working. Not everybody is able to do that, but I was very fortunate in that regard.