While Social Security is usually thought of as a financial safety net for retirement, about 40% of Americans keep working after claiming, according to a 2025 report from Boston College's Center for Retirement Research. Working beneficiaries typically work for at least several years, researchers found, and receive "non-trivial earnings."
While you can continue to collect a paycheck on Social Security, the amount you earn and your age play a large role in how much of your full benefits you'll receive.
Understanding how the rules work can help you decide when to claim benefits and how working may affect your monthly check.
See if an annuity can help you get guaranteed income in retirement
Can you work and collect Social Security at the same time?
You can begin collecting Social Security at age 62, regardless of whether you stop working. However, if you claim Social Security before reaching full retirement age (FRA) and continue working, the Social Security Administration (SSA) may temporarily withhold some of your benefits, depending on how much above the annual earnings limit you make.
Once you reach FRA, there is no retirement earnings test — you can collect any income with no impact on your benefits check.
What is the retirement earnings test?
The Social Security retirement earnings test applies to people who are earning an income and collecting benefits before they've reached FRA. Each year, the SSA sets an earnings cap — if you make more than that amount, a portion of your benefits are temporarily withheld.
That money is not lost forever, though. Any money that the SSA withheld from your check due to the retirement earnings test is paid out after you reach FRA. It may come as a higher monthly benefit or additional checks.
If you're thinking about working and collecting Social Security, here are some things to keep in mind:
- Income is considered wages from an employer and does not include investment earnings, government benefits, interest or capital gains.
- If you make enough income, Social Security could withhold all of your benefits. In that scenario, you're better off delaying filing.
- If you keep working, earnings get factored into your benefits calculations. The SSA could end up recalculating a higher benefit for you in years to come.
- The earnings test also affects spousal benefits. If either you or your spouse is working while collecting worker or spousal benefits before FRA, both of your benefits may be withheld.
How much money can you make while collecting Social Security in 2026?
How much you can earn before it impacts your Social Security benefits depends on your age and the year you're collecting.
If you're younger than full retirement age for the entire year.
For 2026, the Social Security retirement earnings test exempts $24,480 (or $2,040 per month) for beneficiaries below full retirement age (FRA). For every $2 you make over $24,480, $1 is withheld from your Social Security check.
If you're reaching full retirement age in 2026.
If you are going to hit your FRA this year, there's a lot more latitude: For individuals reaching FRA in 2026, you can earn up to $65,160 per year (or $5,430 per month) in the months prior to your birthday month without any penalty. For every $3 over $65,160 you earn, however, $1 is withheld from your check until you hit FRA.
If you've already reached full retirement age.
Once you reach the month of your FRA, there is no longer any cap on how much you can earn while collecting 100% of your Social Security benefits.
Should you work while collecting Social Security?
Whether you should claim Social Security while you continue working is a personal decision that depends on a lot of different factors, including:
- Your age and how close you are to full retirement age
- Your health and life expectancy
- How much you expect to earn
- How much Social Security you're receiving
- Whether you need the income now
- Whether delaying benefits could result in a larger monthly benefit
When working while collecting Social Security may make sense
Working can be worthwhile if you enjoy working, need the additional income or want to continue building your retirement savings. It may also increase your future Social Security benefit if your current earnings are among your highest-earning years.
If you're already at full retirement age, there's no penalty — you can earn any amount from work without having your Social Security retirement benefits reduced.
When you may want to reconsider
If you're younger than full retirement age and earning enough that practically all of your benefits are being withheld, it could make more sense to wait to claim.
Supplementing Social Security
Social Security was never intended to cover 100% of financial needs in retirement.
When he signed the Social Security Act of 1935, President Franklin Roosevelt said the goal was to "give some measure of protection to the average citizen and to his family against the loss of a job and against poverty-ridden old age."
Financial security in your post-working years means leveraging other options.
1. Retirement investment funds
If your company offers a 401(k), you should try to contribute at least enough to max out on any employer match. An individual retirement account (IRA) is also a good option, especially because it's not tied to your workplace — so long as you draw income, you can keep making deposits.
With a Roth IRA, contributions are post-tax, so your investments grow tax-free and you can make withdrawals tax-free. That makes them a good option if you think your tax bracket will be higher in retirement. Roth IRAs have annual contribution limits, as well as income limits on who can open one.
There's no income cap on a traditional IRA, and your contributions go in pre-tax. You pay income tax when you make eligible withdrawals in retirement, which makes them a good investment vehicle if you expect to be in a lower tax bracket when you retire. It's not an either/or proposition: Many investors have both Roth and traditional IRAs
Charles Schwab and Fidelity Investments are two of our top picks for brokerages to open an IRA with. Both have decades of experience and combine low costs and broad investment options with top-rated service from human advisors.
Charles Schwab
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Fidelity Investments
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Minimum deposit and balance requirements may vary depending on the investment vehicle selected. No minimum to open a Fidelity Go® account, but minimum $10 balance according to the investment strategy chosen
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Investment options
Stocks, bonds, ETFs, mutual funds, CDs, options and fractional shares
Educational resources
Extensive tools and industry-leading, in-depth research from 20-plus independent providers
Terms apply.
2. Investments
A diverse portfolio is a smart move when building your retirement strategy: Stocks, bonds, CDs and other investments can spread risk and help you weather market fluctuations. Vanguard is one of our top choices, with a wide lineup of mutual funds and ETFs, including target-date retirement funds.
Vanguard
Minimum deposit and balance
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Fees
Fees may vary depending on the investment vehicle selected. Zero commission fees for stock and ETF trades; zero transaction fees for over 3,000 mutual funds; $20 annual service fee for IRAs and brokerage accounts unless you opt into paperless statements; robo-advisor Vanguard Digital Advisor® charges up to 0.20% in advisory fees (after 90 days)
Bonus
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Investment vehicles
Robo-advisor: Vanguard Digital Advisor® IRA: Vanguard Traditional, Roth, Rollover, Spousal and SEP IRAs Brokerage and trading: Vanguard Trading Other: Vanguard 529 Plan
Investment options
Stocks, bonds, mutual funds, CDs, ETFs and options
Educational resources
Retirement planning tools
Terms apply.
3. Annuities
An annuity is a contract with an insurance company or other financial institution that provides guaranteed income for a set period or even for life.
You can fund an annuity in one lump sum or through a series of payments, and the investment can grow either at a fixed or variable rate. You can also select an annuity that’s tied to a market index, with caps on gains and losses.
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Gainbridge annuities don't have upfront sales charges or administrative fees. However, withdrawal fees and surrender charges may apply if you withdraw above 10% of your account's value per year.
FAQs
Can I work and still collect Social Security?
Yes. You can work while receiving Social Security retirement benefits. However, if you haven't reached full retirement age (FRA) and your earnings exceed the annual limit, the Social Security Administration may temporarily withhold some of your benefits.
What is the Social Security earnings test?
The earnings test determines whether any wages earned while you collect Social Security before reaching FRA can impact the amount of benefits you receive. In 2026, if you are under your FRA by at least a full year, the SSA withholds $1 in benefits for every $2 you earn above $24,480. If you reach full retirement age in 2026, $1 is withheld for every $3 you earn above $65,160 — but only until the month you reach full retirement age.
At that point, you can earn any amount and still qualify for 100% of your Social Security benefits.
What types of income count toward the Social Security earnings limit?
Social Security generally counts wages from employment and net earnings from self-employment. Income such as pensions, annuities, investment income or interest is not usually counted toward the earnings limit.
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At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed financial decisions. Every retirement article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of retirement savings products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
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