Can I Work and Collect Social Security at the Same Time? 2026 Rules Explained
The short answer
Yes, you can work and collect Social Security at the same time — but if you have not yet reached full retirement age, earning above the annual limit will result in SSA withholding a portion of your benefits. Once you reach full retirement age, the earnings test disappears entirely and you can earn any amount without reduction.
The 2026 earnings limits
For 2026, the Social Security Administration applies the following earnings test:
- If you are under full retirement age for the entire year: you can earn up to $24,480. For every $2 you earn above that amount, SSA will withhold $1 in benefits.
- In the year you reach full retirement age (but before your birthday month): the limit is $65,160. For every $3 you earn above that amount, SSA withholds $1 — but only counting earnings before the month you reach full retirement age.
- At and after full retirement age: no earnings limit. You can work as much as you want with no reduction in benefits.
These limits apply to earned income only — wages and self-employment income. Investment income, pension income, rental income, and Social Security itself do not count toward the earnings test.
What happens to withheld benefits
One thing many retirees don’t know: benefits withheld because of the earnings test are not permanently lost. Once you reach full retirement age, SSA recalculates your benefit upward to account for the months when benefits were withheld. This does not fully compensate for the withheld amounts in most cases, but it softens the permanent impact.
This is one reason that the earnings test, while worth understanding, should not automatically deter South Jersey retirees from working part-time — particularly if the additional income supports a specific goal or if delaying full retirement is providing a higher benefit through delayed retirement credits.
How this interacts with taxes
Working while receiving Social Security adds another layer of tax complexity:
- Earned income may push your “combined income” above the threshold where Social Security benefits become taxable — potentially increasing the portion of your benefit subject to federal income tax
- Earned income after full retirement age continues to be subject to Social Security and Medicare payroll taxes — though your benefit may be recalculated upward if your recent earnings are among your highest 35 years
- New Jersey does not tax Social Security income at the state level, but taxes wages and self-employment income at ordinary rates
The WealthCare perspective
Many South Jersey clients in their early 60s are working part-time by choice — consulting, freelance work, family business involvement, or phased retirement. The decision about whether and when to claim Social Security in that context should be made as part of a complete income plan, not based on the earnings limit alone.
At Family Wealth Management, we model the interaction between part-time income, Social Security timing, tax bracket management, and IRMAA exposure as part of the WealthCare Process. The earnings test is one input. It is rarely the most important one.
What to do next
If you are planning to work in retirement — or are already doing so — and want to understand how it interacts with your Social Security timing and tax picture, contact our team at (856) 988-7722 or familywealthadvisory.com.