Going Back to Work After Claiming Social Security? Here's When You Need to Worry About Withheld Benefits.

A lot of people find themselves returning to work after claiming Social Security, and for good reason. For one thing, retirement can be boring. Some people may opt to work even if they don't need the money just to have something to do with their time.

But there are also plenty of Social Security recipients who do need the money. The average retiree benefit today is only about $2,075 a month. If that's your only source of income, covering your bills in full may be a struggle. So working may become necessary in order to supplement those monthly checks.

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The good news is that you're allowed to work while collecting Social Security. But you may risk having benefits withheld, depending on your age and income.

Working while on Social Security: Know the rules

If you claim Social Security before reaching full retirement age (which is 67 for people born in 1960 or later), you'll be subject to an earnings test if you go back to work.

If you're under full retirement age for all of 2026, you can earn up to $24,480 without having any benefits withheld. From there, $1 in Social Security will be withheld per $2 of income you earn.

If you'll be reaching full retirement age at any point in 2026, you can earn up to $65,160 without having benefits withheld. From there, $1 in Social Security will be withheld per $3 of income.

Do keep in mind that the earnings test only applies to earned wages. Withdrawals from a retirement account, for example, don't count toward your annual earnings limit.

Understand what happens when you exceed the earnings test

When you exceed the earnings test, you don't lose out on Social Security benefits permanently. Rather, those benefits are withheld and get repaid to you later.

In that situation, the Social Security Administration recalculates your monthly benefits once you reach full retirement age. And from there, your checks increase so you're made whole on the money that was withheld earlier. But it's still important to understand how Social Security's earnings test works so you know how much income to expect in the near term.

Working while on Social Security could be a good thing for your finances and mental health. But if you're going to do that, know the rules and understand how much income you can earn before withheld benefits come into play. It could, in some cases, make sense to purposely keep your income below the earnings-test limits to avoid financial challenges.

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