In the United States, individuals receiving Social Security retirement benefits who continue to earn income before reaching their full retirement age (FRA) may experience a reduction in their monthly payments. However, this withholding rule applies only to certain types of earnings and only until the beneficiary attains FRA.
Importantly, not all income counts towards the Social Security Administration’s (SSA) earnings limit. Earnings derived from investments, for instance, do not factor into the calculation and therefore do not trigger any withholding of benefits.
Details of the Earnings Limits and Withholding
For beneficiaries who begin claiming Social Security retirement benefits before their FRA, the SSA sets an annual earnings threshold. As of 2026, this limit stands at $24,480 for those who will not reach FRA at any point during the calendar year. If a beneficiary earns above this amount, the SSA reduces their benefits by deducting $1 for every $2 earned beyond the threshold.
In the year a beneficiary reaches their FRA, the earnings limit increases significantly to $65,160 as of 2026. Up until the month prior to reaching FRA, the SSA withholds $1 in benefits for every $3 earned above this higher cap.
Once a beneficiary attains their full retirement age, these earnings restrictions are lifted entirely. They can earn any amount without facing reductions in their Social Security payments.
Moreover, the SSA accounts for any benefits withheld due to excess earnings before FRA. These withheld amounts are not lost but are instead credited and added back to the individual’s monthly benefit once they reach their full retirement age.