The retirement earnings test withholds part of your Social Security benefit if you claim before reaching full retirement age and your earnings from work exceed an annual limit. Two limits apply, set by SSA each October:
- The lower limit applies in any calendar year that ends before you reach FRA. SSA withholds $1 of benefits for every $2 of earnings above the limit. For 2026 the lower limit is $24,480.
- The higher limit applies in the calendar year you reach FRA, but only to earnings in months before your birthday month. The withholding rate softens to $1 for every $3. For 2026 the higher limit is $65,160.
Once you pass FRA, the earnings test stops applying entirely. You can work and earn any amount with no benefit withheld.
2026 lower limit
$24,480
Years before you reach FRA
2026 higher limit
$65,160
Year you reach FRA, before birthday month
Below FRA withholding
$1 in $2
For each dollar earned over the lower limit
Year of FRA withholding
$1 in $3
For each dollar over the higher limit
Annual earnings test exempt amounts, 2000 to 2026
Both annual limits are wage-indexed and update each January. The lower limit applies in any year before the year you reach FRA. The higher limit applies only in the calendar year you reach FRA, and only to earnings in the months before your birthday month.
| Year | Lower limit (years before FRA) | Higher limit (year of FRA) |
|---|---|---|
| 2000 | $10,080 | $17,000 |
| 2001 | $10,680 | $25,000 |
| 2002 | $11,280 | $30,000 |
| 2003 | $11,520 | $30,720 |
| 2004 | $11,640 | $31,080 |
| 2005 | $12,000 | $31,800 |
| 2006 | $12,480 | $33,240 |
| 2007 | $12,960 | $34,440 |
| 2008 | $13,560 | $36,120 |
| 2009 | $14,160 | $37,680 |
| 2010 | $14,160 | $37,680 |
| 2011 | $14,160 | $37,680 |
| 2012 | $14,640 | $38,880 |
| 2013 | $15,120 | $40,080 |
| 2014 | $15,480 | $41,400 |
| 2015 | $15,720 | $41,880 |
| 2016 | $15,720 | $41,880 |
| 2017 | $16,920 | $44,880 |
| 2018 | $17,040 | $45,360 |
| 2019 | $17,640 | $46,920 |
| 2020 | $18,240 | $48,600 |
| 2021 | $18,960 | $50,520 |
| 2022 | $19,560 | $51,960 |
| 2023 | $21,240 | $56,520 |
| 2024 | $22,320 | $59,520 |
| 2025 | $23,400 | $62,160 |
| 2026 | $24,480 | $65,160 |
Source: SSA Office of the Chief Actuary, Retirement Earnings Test Exempt Amounts.
How the $1-in-$2 and $1-in-$3 withholding works
The earnings test reduces your monthly benefit until the total withholding equals the calculated amount, then it stops for the rest of the year. Take a worker with a $2,000 monthly Social Security benefit who is two years before FRA in 2026 and earns $36,480 from a job. Earnings above the lower limit are $12,000. SSA withholds $1 in benefits for every $2 of those, which is $6,000 total withholding. With a $2,000 monthly benefit, that means three full months are withheld. The remaining nine months are paid normally.
In the year you reach FRA, the rules loosen. Suppose the same worker reaches FRA in 2026 and earns $95,160 between January 1 and their birthday month. Earnings above the higher limit are $30,000. SSA withholds $1 for every $3 of those, which is $10,000. With a $2,000 benefit, five months are withheld. Earnings after the birthday month, no matter how high, do not count.
Once FRA is reached, both the withholding and the recalculation kick in. SSA recomputes your benefit using only the months that were actually paid before FRA, plus the bend point reduction credit, producing a slightly higher ongoing monthly amount that recovers the withheld benefits over time.
Practical implications for claim-age decisions
The earnings test is one of the strongest arguments against claiming Social Security early if you intend to keep working. Three concrete consequences:
- If you earn well above the lower limit, the early-claim trade-off gets worse. You took a permanent reduction at 62 to start checks early, and the earnings test then withholds many of those checks anyway. You eventually get them back, but the lifetime expected value drops.
- If you stop working at 62 and stay below the lower limit, the earnings test does not affect you. The early-claim reduction still applies, but no withholding kicks in.
- If you wait until FRA to claim, the earnings test never applies. You can keep working at any income level once you cross FRA.
For the per-cohort math on the early-claim reduction itself, see the FRA chart, which has individual pages for every birth year from 1955 to 1975 with concrete dollar examples.
Earnings test FAQ
The questions that come up most often about the Social Security earnings test.