Social Security Administration deducts benefits for workers above annual earnings limit
Updated
Updated · USA TODAY · May 1
Social Security Administration deducts benefits for workers above annual earnings limit
5 articles · Updated · USA TODAY · May 1
For 2026, beneficiaries below full retirement age lose $1 in benefits for every $2 earned above $24,480; in the year they reach it, the threshold rises to $65,160.
The rule mainly affects people claiming early, including those first eligible at 62, and can sharply reduce monthly payments while they continue working.
Once beneficiaries reach full retirement age, currently 67 for people born in 1960 or later, earnings no longer reduce benefits, though income and some benefits may still be taxable.
If the earnings test is repealed, could more seniors end up with lower lifetime benefits without realizing it?
Could a different system better balance the need for senior income security and Social Security’s financial health?