Can You Still Work and Collect Social Security? 

Glenn Kirst is a lead planning excellence consultant at Northwestern Mutual.

Once you turn 62, you can start collecting Social Security, which can be a great source of guaranteed income in retirement. But you may not be quite ready to take your foot off the gas and stop working completely. So, you might choose to work and collect Social Security at the same time. If you do, it’s important to know that your earnings can affect your benefit amount, in some cases even reducing the amount to zero.

Here’s a rundown of how working while you collect Social Security works.

Can you work and collect Social Security?

Yes, you can—though doing so may have tax consequences and temporarily lower your benefit amount. Even if you are of retirement age, you might decide to continue working at your full-time job to save more for retirement and take advantage of catch-up contributions. Or you may choose to work part time or do consulting work in retirement to keep busy and make extra money. In either case, you can still begin collecting Social Security as soon as you’re eligible at 62.

How many people are still working while collecting Social Security?

It’s likely that more than 11 million Americans over 65 are currently collecting Social Security while working. According to the Bureau of Labor Statistics, about 20 percent of people aged 65 and older worked in 2024. A monthly snapshot from the Social Security Administration reveals that 58.4 million people in the same age group received Social Security, SSI or both in January 2026.

Will my Social Security benefit increase if I continue to work?

How much you’ll receive in Social Security depends on many factors, including your income in the years you were working. So regardless of your age and whether you’re already receiving payments, the Social Security Administration (SSA) will review your earnings every year and refigure your benefit, which could lead to an increase.

How much money can I make in 2026 and still collect Social Security?

While continuing to work has the potential to ultimately raise your Social Security benefit, working can also temporarily reduce your benefit, depending on your age and how much money you make. The SSA sets an income limit, and any amount over the limit will impact your Social Security check.

Here are the income limit rules in 2026:

• If you’re younger than your full retirement age for the entire year, you can earn up to $24,480 before your benefit is impacted. For every $2 you earn above that amount, SSA will deduct $1 from your benefits check.
• If you’ll reach your full retirement age within the calendar year, the income limit increases to $65,160. For earnings above that amount, the SSA will deduct $1 from your monthly benefit for every $3 you earn, but this will stop end the month you reach full retirement age.
• Beginning the month you reach full retirement age, you can earn as much as you’d like without your benefit payment being impacted.

Here’s a look at some examples to see how this plays out:

Let’s say as a 65-year-old, you make $60,000 in 2026 and are eligible for an annual benefit of $24,000 (based on a monthly benefit of $2,000, which is just shy of the average Social Security payment for retired workers in January 2026). That means $35,520 of your income would fall over the income limit, and your benefit would be reduced by $17,760 for a total benefit amount of $6,240. In this situation, collecting benefits before full retirement age may not make sense.

Let’s say instead that you’re still making $60,000 a year, but you’re reaching full retirement age in 2027. In the months leading up to your birthday in 2027, your entire income falls below the limit, meaning your benefit payment amount will not be reduced. In this hypothetical situation, waiting just one year to start taking Social Security would have made much more sense for you.

What income counts toward the limit?

The SSA will only consider wages in your income, so that excludes:

• Investment earnings.
• Unemployment benefits.
• Pensions.
• Annuities.
• A spouse’s income.

What happens when I reach my full retirement age?

The income threshold disappears once you hit your full retirement age. From that point onward, there is no reduction to your benefit based on how much you make.

Is Social Security taxable if you’re still working?

Whether you have to pay taxes on your Social Security benefit depends on your income—not on whether or not you’re working. The IRS takes into account both income from a job and income from other sources.

To determine whether you’ll owe taxes, you’ll calculate your combined income, which involves adding 50 percent of your Social Security benefits to your adjusted gross income and nontaxable interest. If your combined income sits within a certain threshold, your benefit payment could be subject to tax.

The calculation can get a bit complicated, but the most important thing to know is that you’ll never be taxed on more than 85 percent of your benefits.

Here’s a general look at how the numbers shake out:

• Individual tax filers: If your combined income is between $25,000 and $34,000, you may be taxed on up to 50 percent of your benefits. If your combined income is more than $34,000, up to 85 percent of your benefits may be taxable.
  
• Married couples filing jointly: If your combined income is between $32,000 and $44,000, up to half of your benefits may be taxed. If your combined income is more than $44,000, you could be taxed on up to 85 percent of your benefits.

What are the pros and cons of collecting Social Security while working?

When to begin collecting Social Security—and when to stop working—are truly personal decisions that will depend on your situation. Here are some things to think about as you weigh these decisions:

Pros of collecting Social Security while you work

Some upsides of working and collecting Social Security include:

It could provide much-needed income.

If your lifestyle has changed or you’ve experienced a financial emergency or unexpected health care costs, Social Security benefits could help you cover additional expenses.

It could help you work toward financial goals.

A monthly Social Security payment can free up money to put toward other important goals. That might be investing, traveling, starting a side business or funding your legacy plan.

There’s no penalty if you’ve reached full retirement age.

Once you’ve reached full retirement age, money you have coming in from a job won’t affect your Social Security benefit payment amount. So, in addition to income you’re earning with a job, income from Social Security could help you move more quickly toward financial goals—like a full retirement.

Cons of collecting Social Security while you work

Here are some downsides you may want to consider before collecting Social Security while you work:

Taking Social Security before your full retirement age will result in a smaller benefit for life.

If you start taking Social Security at age 62, it could reduce your total benefit amount by as much as 30 percent. But if you delay taking your benefit after you reach your full retirement age, your benefit will increase 8 percent each year that you wait until you turn 70. That could make a significant difference in your total benefit amount—and your total retirement income.

Working could reduce your Social Security benefit.

If you’re under the full retirement age, your benefit may be reduced if you earn more than the allowable limit. Depending on how much you make, this could significantly reduce how much you collect. You could even reduce your benefit to zero.

You might owe more in taxes.

Bumping up your earnings by working could result in a higher tax bill. You may also have to pay taxes on the Social Security benefit you receive, depending on your annual combined income.

When should you start collecting Social Security?

Decisions about when to begin claiming Social Security and when to stop working will completely depend on your financial situation. How much do you have saved? What other financial pieces do you have in place? What are you hoping to do in retirement? Are you supporting others or only yourself? These are all questions you’ll want to answer when making these decisions.

It can feel overwhelming to juggle all the variables on your own, but a financial advisor can be a helpful resource to guide you through these decisions.

When you meet with a Northwestern Mutual financial advisor, your advisor will ask you questions like those above (and many more) to get a good understanding of what’s important to you and what you’re already doing. From there, you’ll create a plan together that maximizes opportunities available to you and accounts for things you may not have thought about. Whether your plan includes working, Social Security or both, your advisor can share the information you need to make educated decisions about how you’ll reach your financial goals.

Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the CFP® certification mark, the CERTIFIED FINANCIAL PLANNER™ certification mark, and the CFP® certification mark (with plaque design) logo in the United States, which it authorizes use of by individuals who successfully complete CFP Board’s initial and ongoing certification requirements.