You can collect Social Security and keep working. If you’re younger than full retirement age, Social Security holds back part of your benefit once your earnings pass a set limit. Once you reach full retirement age, you can earn any amount with no reduction.
The rules here cover Social Security retirement benefits. Disability benefits and Supplemental Security Income use different earnings rules.
What Is the Social Security Earnings Limit for 2027?
The Social Security earnings limit is $25,560 in 2027 for anyone under full retirement age all year, up from $24,480 in 2026. Social Security withholds $1 from your benefits for every $2 you earn above it.
In the year you reach full retirement age, the limit is higher: $67,920 in 2027 and $65,160 in 2026. Social Security withholds $1 for every $3 above it, counting only what you earn before the month you reach full retirement age.
| Earnings test | 2026 limit | 2027 limit | Amount withheld |
|---|---|---|---|
| Under full retirement age all year | $24,480 ($2,040 a month) | $25,560 ($2,130 a month) | $1 for every $2 above the limit |
| Year you reach full retirement age | $65,160 ($5,430 a month) | $67,920 ($5,660 a month) | $1 for every $3 above the limit |
Source: Social Security Administration, 2027 COLA fact sheet.
Here’s how that works in practice. Say you’re 64, your benefit is $1,800 a month, and you earn $35,560 in 2027. That’s $10,000 over the limit, so Social Security withholds $5,000 of your benefits for the year. It does that by holding back whole monthly payments at the start of the year until it reaches the full amount.
Do You Get Withheld Social Security Benefits Back?
Withheld benefits come back to you after full retirement age. According to Social Security’s guidance, “your benefit will increase at your full retirement age to account for benefits withheld due to earlier earnings.” The higher payment returns that money over the rest of your life.
What Counts as Earnings for the Social Security Earnings Test?
Only work income counts toward the earnings test. That means wages from a job and net earnings from self-employment, including bonuses, commissions, and vacation pay.
Pensions, annuities, investment income, capital gains, interest, and veterans’ or other government retirement benefits don’t count. You can draw on all of those without triggering the earnings test.
Is There an Earnings Limit After Full Retirement Age?
There’s no Social Security earnings limit after full retirement age. Starting the month you reach it, you can earn any amount without reducing your benefit. Full retirement age is 67 for anyone born in 1960 or later.
Do You Still Pay Social Security Tax While Collecting?
If you’re working, you keep paying Social Security payroll tax on your wages at any age. In 2027, the 6.2% tax applies to earnings up to $192,300, up from $184,500 in 2026.
That extra work can raise your benefit. Social Security reviews your earnings record every year. If a new year of earnings replaces a lower one in your benefit calculation, your payment goes up. Work income can also make more of your benefit taxable, since it adds to your combined income.
Should You Claim Social Security While You’re Still Working?
If you’re still working before full retirement age, waiting to claim often pays off. The earnings test can hold back much of your benefit while you work. Each year you wait past full retirement age, up to 70, adds about 8% to your monthly check.
The Boldin Planner shows how different claiming ages and work income change your cash flow, taxes, and savings over your lifetime. It factors in the earnings test for any years you work before full retirement age.
How Long Should You Keep Working?
Many people keep working part time to stay engaged and to put off claiming. Jobs for seniors range from consulting in your old field to seasonal and remote roles. Delaying retirement even a year or two can raise both your savings and your benefit.
FAQs: Social Security and Working
How much can I earn while collecting Social Security in 2027?
You can earn up to $25,560 in 2027 while collecting Social Security before full retirement age without any reduction. In the year you reach full retirement age, the limit rises to $67,920. After you reach full retirement age, there’s no limit at all.
What happens if I earn over the Social Security limit?
Earning over the Social Security limit means part of your benefit is withheld. Under full retirement age, Social Security keeps $1 for every $2 above the limit. In the year you reach full retirement age, it keeps $1 for every $3. Your benefit goes up at full retirement age to make up for the withheld months.
Does pension or investment income count toward the Social Security earnings limit?
Pension and investment income don’t count toward the Social Security earnings limit. Neither do annuities, interest, capital gains, or government retirement benefits. Only wages and net self-employment earnings count.
Do I pay Social Security tax if I work while collecting benefits?
You pay Social Security payroll tax on your wages whether or not you’re collecting benefits. Employees pay 6.2% on earnings up to $192,300 in 2027, and self-employed workers pay 12.4%. The extra earnings can also raise your benefit if they replace a lower-earning year in your record.
Does the earnings limit apply to Social Security disability benefits?
The retirement earnings limit doesn’t apply to Social Security disability benefits. Disability benefits use a separate test called substantial gainful activity, with its own monthly earnings threshold. Supplemental Security Income has its own rules as well.
