2026 comes with changes to Social Security (and they say they’re finally good news). Now, retirees will be able to earn money (by working, of course) without having their benefits reduced. Sure, going back to work isn’t exactly ideal, but many people honestly need to (or simply want to because they enjoy it), and until now, part of their monthly payment was being taken away.

Not anymore. After years in which inflation has driven up the price of absolutely everything (and we know it well), those who still need to work to make ends meet can breathe a little easier.

What changes in 2026

Until now, the system had a limit: if you earned more than a certain amount while receiving Social Security, the government deducted part of your benefits.

For example, in 2025 the cap is 23,400 dollars per year, so if you go over that amount, the state “takes” 1 dollar for every 2 extra dollars you earn.

The new limit will be higher (the exact figure hasn’t been confirmed yet, but it’s expected to exceed 25,000 dollars), so if you feel the need to return to work, you’ll be able to earn more money without losing part of what you’re entitled to.

How the current system works

There are currently two levels:

If you haven’t yet reached your full retirement age (FRA), Social Security takes 1 dollar for every 2 dollars you earn above the limit.
If you reach your full retirement age (67 years), the penalty is 1 dollar for every 3 dollars earned above 62,160 dollars, and only until the month you reach that age.

When you reach full retirement age, Social Security recalculates your payments and returns part of what was withheld with a small increase in your future benefits.

A change for retirees

Unfortunately, more and more retirees need to keep working after retirement, some for economic reasons and others because they want to stay active.

With this new rule, those who combine work and retirement will at least feel that working is actually worth it. Plus, it could encourage more people to stay in the workforce (and less spending on pensions, wink, wink).

What you should do before 2026

Although the change takes effect in January 2026, it’s best to prepare now, calculate your FRA, estimate your income, and review how your life would look with your current benefits.

If you work or plan to, it’s best to talk to a financial advisor or contact the SSA to adjust your work plans without losing money.

And this change?

Don’t think it’s a coincidence. One in four people over 65 has some type of job (some even have two). Retiring (even if some of us in our early 30s already dream of it) no longer seems like a viable option for the system. Everything is more expensive, and life expectancy has increased, so they want to modernize the system, and in the process, save a few pensions while they figure out how to make the program survive past 2030 (the year it’s estimated Social Security funds could run out).

So, if you’re ready to retire, do it. And if you still have many years to go before retirement, start saving so that when the time comes, you won’t have to put your work uniform back on and can truly enjoy your golden years as you deserve!

That said, if you want to keep working, go ahead, that’s exactly what the system is being changed for! And as you can see, they won’t take as much money from you for continuing to work once you start receiving your benefits. We did say it was good news, didn’t we?