5. Social Security earnings test

Social Security applies an earnings test to beneficiaries who have not yet reached full retirement age (FRA), which is currently between 66 and 67, depending on birth year. People who collect retirement, survivor or family benefits before reaching that milestone­­­ – and who continue to work­­­ – may temporarily lose a share of their Social Security payments if their earnings exceed a certain level.­­­

That threshold changes annually, tracking wage trends. In 2026, beneficiaries who will not reach FRA until a later year have $1 withheld from their Social Security payment for every $2 in work income above $24,480 (up from $23,400 in 2025). For example, if you earn $40,000 from work in 2026, your benefits for the year would be reduced by $7,760 — half the difference between $24,480 and $40,000.

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The earnings test eases in the year you reach your FRA: Social Security holds back $1 in benefits for every $3 in earnings above $65,160 (up from $62,160 in 2025) until the month when you hit the milestone. At that point, the test goes away: There’s no longer any benefit deduction, no matter how much you earn, and the SSA adjusts your monthly payment upward so that, over time, you recoup the prior withholding.

There are different income rules for people receiving Social Security Disability Insurance (SSDI). Because disability benefits are intended for people who are largely unable to work for an extended period due to a serious medical condition, you can lose them if your earnings reflect what the SSA calls “substantial gainful activity.”

In 2026, that threshold is $1,690 a month for most SSDI beneficiaries, a $70 increase from the 2025 level of $1,620. People receiving SSDI due to blindness are subject to a higher income limit: $2,830 in 2026, $130 more than in 2025.

6. Qualifying for benefits

The first step in qualifying for Social Security retirement benefits is having at least 40 Social Security credits. You earn credits by doing work in which you pay Social Security taxes on your income. You can earn up to four credits a year, so most workers reach the eligibility threshold after 10 years in the labor force.

In 2026, you will earn one credit for earnings of $1,890, $80 more than the 2025 level, so you bank your maximum of four credits when your work income for the year reaches $7,560.

Andy Markowitz and Tony Pugh contributed to this story.