Understanding the Social Security Earning Limit
Retirement doesn’t always mean giving up working completely. There are plenty of older Americans who choose to continue working in some capacity, often with part-time jobs or side gigs. The extra income is often needed when you consider that the average Social Security retirement benefit payment is $2,071 per month.
Before you start filling out job applications, an article by Money cautions that there is a limit to how much you can earn while receiving full benefits. However, the earnings limit applies to people who claim benefits before reaching full retirement age, which is age 66 or 67.
According to the article, “if you are younger than full retirement age, Social Security withholds $1 for every $2 earned above an annual limit, which is $24,480 in 2026.” In the year that you do reach full retirement age, that changes to $1 for every $3 earned above $65,160.
Keep in mind, the money is not lost. The article explains that any benefits that are withheld because you are below full retirement age will be distributed in future Social Security payouts.
The Seniors Trust is committed to improving the financial well-being of older Americans by passing the Social Security Expansion Act. It will give retirees an immediate increase of about $200 a month in benefits, a fair annual cost-of-living adjustment (COLA), increased minimum benefits, and ensure the long-term solvency of the Social Security program.
