Retirement doesn’t necessarily mean what it used to be. Very few people get the proverbial golden watch after decades of working for the same company, and almost no private sector workers have an employer-guaranteed pension to fall back on when they leave their job in old age.
As a result, it is common for people to phase into retirement slowly, and even work shortly after they have officially left their careers behind. Sometimes, people choose to do this because they actually enjoy their work, find it meaningful, and like spending time with their coworkers. They keep working because it gives them purpose. In other situations, it is a matter of financial necessity because you have too little money in retirement plans.
Whether you are working because you want to or because you have to, you should know the rules for collecting pay while you are receiving Social Security. And, you should also be aware that those rules are changing in 2026 in a way that could impact your take-home income.
Image source: Getty Images.
In 2026, there is a change coming in the rules for work while collecting benefits that apply to some retirees who draw wages and collect benefits.
These changes will not affect anyone who is working after reaching full retirement age (FRA) because once you reach that milestone, there is no longer a limit on the income you can earn before your Social Security payments are reduced. You will hit FRA at age 67 if you were born in 1960 or later, and if you were born earlier, your FRA is:
66 and 10 months if you were born in 1959
66 and 8 months if you were born in 1958
66 and 6 months if you were born in 1957
66 and 4 months if you were born in 1956
66 and 2 months if you were born in 1955
If you’ve reached your FRA, then there’s nothing you need to know about Social Security’s work rules except that they don’t apply to you. If you are not, however, then you need to be aware of the rule change because it affects how long you can work before benefits are temporarily lost because you earn too much.
The good news is, you will be allowed to earn more in 2026, giving you more opportunities to increase your total combined household income.
Social Security sets limits on how much you can work each year while under your FRA. If you go above them, you’ll lose either $1 in benefits for every $2 you earn above the limit if you won’t reach FRA all year, or $1 in benefits for every $3 above if you hit FRA at any point during the year.
When you lose benefits, the Social Security Administration withdraws entire checks. So, you may have some months where you get $0 in benefits, or even lose your benefits for most or every month, depending on earnings. This can be a tough pill to swallow if you were hoping to get Social Security and a paycheck.
The advantage, however, is that benefits are recalculated at full retirement age. While your standard benefit was reduced based on the early filing penalty if you filed before FRA, you are credited back the early filing penalty for each month no check is received. This raises your monthly benefits for life when they are recalculated at the FRA, which may mean you don’t end up having to take as much from your 401(k) or IRA later.
So, when do you start losing benefits?
In 2025, you start losing $1 in benefits for every $2 over $23,400, and in 2026, that rises to $24,480. This is for those who will not hit FRA all year.
In 2025, you lose $1 in benefits for every $3 above $62,160, and in 2026, that number will rise to $65,160. This is for those who will hit FRA sometime during the year.
You want to keep these changes in mind because you may decide you want to work a little more this year, since you can do so without seeing your Social Security checks go away.
If you’re like most Americans, you’re a few years (or more) behind on your retirement savings. But a small number of little known “Secrets of Social Security” can help ensure a boost to your retirement income.
One easy trick can pay as much as $23,760 more… every year! Once you learn how to maximize your Social Security benefits, we think you can confidently retire with the peace of mind we’re all looking for. Join Stock Advisor to learn more about these strategies.
See the “Secrets of Social Security” ยป
The Motley Fool has a disclosure policy.
The Rules for Working While Collecting Social Security Are Changing in 2026 was originally published by The Motley Fool
