A part-time job can make retirement more comfortable, but combining wages with Social Security before full retirement age needs some planning. The salary you earn may cause the agency to withhold benefits, leaving your bank deposits different from the total you expected.
The retirement earnings test applies before full retirement age. It is separate from income tax, and it looks at earnings from work rather than every dollar entering your household. The figures below apply to 2026; use the limits for the year in which you work.
Work out which annual limit applies
If you remain below full retirement age throughout 2026, SSA generally withholds $1 of benefits for each $2 of earnings above $24,480. Suppose you earn $30,480 during the year. The $6,000 excess produces $3,000 of benefit withholding under the annual test.
In the year you reach full retirement age, a higher limit applies only to earnings before that month. For 2026, it is $65,160, with $1 withheld for every $3 above the limit. If the relevant earnings total $68,160, the $3,000 excess produces $1,000 of withholding. Starting with the month you reach full retirement age, earnings no longer reduce retirement benefits under this test.
These examples describe the calculation, not a promise that SSA will deduct an equal amount from every check. Ask how withholding will affect the payment schedule before spending against benefits you may not receive that month.
A midyear retirement can qualify for a different rule
Someone leaving a well-paid job in the autumn may have passed the annual limit months before filing. The special monthly rule can allow benefits for whole months SSA considers you retired, despite earlier earnings. It generally applies for one year, often the first year of retirement.
For someone below full retirement age all year in 2026, the monthly earnings figure is $2,040. In the year of full retirement age, the corresponding figure is $5,430 for relevant months. You must also avoid substantial services in self-employment. A business can count as substantial work even when its profit is small.
For example, imagine someone below full retirement age who leaves employment in September, has already earned $50,000 and performs no further work that year. The annual total alone does not establish whether October through December benefits must be withheld. SSA needs to evaluate the monthly rule. You can check the first-year rule on the Social Security Administration website before making that assumption.
Separate work earnings, taxes and later adjustments
Wages and net self-employment earnings generally count; pensions and investment income generally do not. That distinction belongs to the earnings test. Those other income sources can still matter when calculating tax on Social Security benefits.
Report a changed earnings estimate to SSA promptly. At full retirement age, the agency adjusts the benefit calculation to account for months reduced or withheld because of excess earnings. This is not simply an immediate refund of every withheld dollar. Further work can also improve the earnings record used for your benefit, as explained in our guide to the 35-year rule.
Before accepting extra hours, compare the pay you would keep with the timing of any benefit withholding. You can confirm the applicable annual limits on the Social Security Administration website and then put the expected deposits into your monthly budget.
