Overview
- Before full retirement age in 2026, Social Security withholds $1 for every $2 earned above $24,480, or $1 for every $3 above $65,160 in the year you reach full retirement age until your birthday month, after which earnings no longer reduce benefits.
- Benefits withheld due to the earnings test are not lost, as the Social Security Administration recalculates your payment at full retirement age to compensate for prior withholdings.
- Continuing to work can raise future payments by replacing lower-earning years in the formula, and SSA’s annual review can trigger increases that typically show up in the December payment of the following year.
- Retirement benefits are based on your highest 35 years of indexed earnings and require 40 credits to qualify, with full retirement age at 67 for those born in 1960 or later and roughly 8% annual increases for delaying benefits past full retirement age up to 70.
- Wages, commissions, bonuses, and net self-employment income count toward the earnings test, while pensions, unemployment benefits, IRA withdrawals, and most investment income do not, and income is counted when earned rather than when paid.