If you are thinking of retiring before the Full Retirement Age (FRA), the Government has proposed changes so that, in 2026, you can earn more money without losing part of your benefits! Finally some good news, right?

And the thing is, next year you will be able to earn more money working without Social Security cutting so much from you. It is a change in the system that determines how much an early retiree can work before they start withholding part of their monthly check.

And they specify that there are two different increases, one for those who are still below the full retirement age (FRA), and another (much more generous) for those who will reach it in 2026. And we remind you what the SSA has also clarified, which is that the money they withhold from you is not lost, it comes back later in the form of a monthly increase! Let’s go step by step.

New limits

Until now, there was an income limit you could earn while receiving retirement payments (because yes, there are people who keep working while receiving the pension because their salary is not enough), and if you exceeded it, they would start deducting money. The good news for 2026 is that this limit is going to change.

For those who will remain below FRA during the whole year, the new cap will be 24,480 dollars in 2026 (in 2025 it was 23,400).

If you go over it, the rule stays the same, they withhold 1 dollar for every 2 dollars earned above the limit.

It is not something to throw fireworks about, but it does mean that millions of retirees will be able to work a little more or keep a part-time job without Social Security “taking” half their check.

If you reach FRA in 2026…

For those who reach FRA at some point in 2026, the annual limit rises to 65,160 dollars (compared to 62,160 in 2025). In this bracket, the withholding will be 1 dollar for every 3 extra dollars.

And the thing is, many people who are just one step away from full retirement age are still in well-paid jobs or with long-established professional careers. That is why they expand the margin right here.

And the withheld money?

As we were telling you, this is the point that creates the most doubts. Many retirees wonder if that part of the pension is lost when it is deducted from their check.

The answer is NO, when you reach FRA, the SSA reviews your record and raises your monthly check to compensate for the months in which they withheld money from you. But, yes, they do not send you a lump-sum payment, they give it back to you month by month. That is, you recover everything, but in the form of an “improved monthly payment”.

Now everything is more expensive

Surely you have noticed it too, housing is more expensive, basic services and medicines keep rising and the supermarket basket gets smaller and smaller but we spend more… So allowing retirees to earn a little more without punishing them is, honestly, a relief for many people.

There are those who need to work some hours to make ends meet and cover all their expenses, or even some do it because they like their routine and feeling active. Whatever the reason, these new limits offer a lot of flexibility.

More freedom, more income and fewer restrictions

People have been asking for this improvement for years, to be able to work without seeing Social Security take a big part. 2026 comes to fulfill that, but remember that a giant bonus will not arrive, they will give it back to you little by little, like a COLA just for you! We have to adapt to modern times, and modern times say that many retirees cannot stop working!