Can I work and collect Social Security at the same time?

The earnings test only counts money you earn from work: wages and net self-employment income. Pensions, IRA and 401(k) withdrawals, investment income, rental income, and annuity payments do not count against the limit. And withheld benefits are not lost money. At your full retirement age (FRA), Social Security recalculates your benefit to credit back the months that were withheld, permanently raising your check going forward.

The 2026 earnings test at a glance

For anyone born in 1960 or later, FRA is 67. In the year you reach FRA, only earnings in the months before your FRA month count toward the $65,160 limit.

A worked example

Maria is 63, collecting a $1,600 monthly benefit ($19,200 per year), and takes a job paying $34,480 in 2026. She is $10,000 over the $24,480 limit, so Social Security withholds $5,000 of benefits, roughly three of her monthly checks (it withholds full months, not partial ones). She still nets the job income plus about $14,200 in benefits for the year.

Now the payback: when Maria reaches 67, Social Security adjusts her benefit as if she had claimed those withheld months later than she actually did. Three withheld months work like claiming three months later, which nudges her check up for the rest of her life. Over a normal retirement, many workers recover much of what was withheld. Her new earnings can also raise her benefit a second way: Social Security recomputes benefits annually, and if a working year replaces a lower year among her highest 35, the benefit rises.

When working while collecting backfires

Here’s the mistake I see people make: claiming at 62 while still working full time. If your wages are high enough, the earnings test can withhold most or all of your checks, so you have locked in the permanent early-claiming reduction (roughly 70% of your full benefit at 62 with an FRA of 67) while receiving little money now. In that situation it may make more sense to delay filing until you actually stop working or get within reach of FRA. Also remember the withheld amounts are based on your earnings estimate, so tell Social Security promptly when your work income changes, or you may face an overpayment notice later. One more note: benefits you do receive while working may also be taxable, since work income raises the combined income that determines taxation of benefits.