3 Rules All Retirees Must Know About Working While Collecting Social Security

Social Security replaces only 40% of preretirement income, so you'll need something to supplement it. This could be money from your retirement plans if you have plenty invested. However, some people also want money from a paycheck coming in while they collect Social Security.

If you're thinking about working while you receive your benefits, there are three key rules you need to know. Here's what they are.

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1. You can work as much as you want once you've reached FRA

The first key rule you need to know is that you can work as much as you want once you have reached your full retirement age. FRA is 67 if you were born in 1960 or later. Once you've hit this milestone, you're entitled to collect your standard Social Security benefit with no reductions for early filing penalties, and any limits on earning income are lifted.

For many people, it makes sense to work at least until FRA to claim benefits, especially if they are planning to work at the same time. That's true both so they can avoid shrinking their standard payment and so they don't need to worry about their earnings costing them any Social Security. When you're doing your retirement planning, this approach is worth considering.

2. If you're under FRA, there are earning limits

If you claim Social Security before FRA, you need to be aware of the impact this decision will have on your ability to work. Specifically, if you earn too much before hitting your FRA, you temporarily forfeit some of your benefits.

The earning limits change over time. In 2026, here's what they are:

• $24,480 if you will not hit FRA at all during the year. Once you've earned this much, you lose $1 in Social Security benefits for every $2 extra earned.
• $65,160 if you will reach FRA at some point in the year. Once you earn this much, you lose $1 in Social Security benefits for every $3 extra earned. This limit only applies until the time you hit your FRA. As soon as you do, there is no longer a cap.

If you forfeit benefits, the Social Security Administration will withhold entire checks. At FRA, benefits are recalculated to account for the missed income, and you get a higher benefit in the future because of it.

3. If you work, you can increase your Social Security check

There's also some good news for people who work while collecting benefits, no matter how old you are. If you earn more than you did at a prior point in your career, your benefits may increase because of it.

That's because of the way the Social Security benefit formula works. You get benefits equal to a percentage of your average income during your 35 highest-earning years, after adjusting wages for inflation. If you earn a lot now, later in life, the years you're working now could potentially replace lower-earning years in your formula, increasing your benefit.

Understanding these three rules can help you make smart choices, so be sure you know them before you start working as a Social Security retiree.

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