Social Security reduces benefits for workers earning above annual limits

In 2026, Americans who collect Social Security early and keep working need to watch their earnings carefully. If you have not yet reached full retirement age, you can earn up to $24,480 a year. Above that, Social Security will reduce your benefits by $1 for every $2 you earn. If you reach full retirement age during 2026, a higher limit of $65,160 applies, but only for months before your birthday month. After that birthday month, there are no limits at all. The good news is that withheld money is not gone forever. Social Security will increase your monthly payments later to pay it back. These rules apply only to work income, not to pensions or investments.