Working while collecting Social Security: the 2027 earnings limit

You can work and collect Social Security retirement benefits at the same time. If you have not reached full retirement age yet, though, earning more than a set amount means some of your benefits are held back. Here is how that works in 2027.

Who the limit applies to

Only people below full retirement age. From the month you reach it, there is no limit at all, and you can earn any amount without a dollar being withheld.

The two limits for 2027

• Under full retirement age for the whole year: $25,560, up from $24,480 in 2026.
• The year you reach full retirement age: $67,920, up from $65,160 in 2026. Only what you earn in the months before you reach that age counts.

How much is held back

Under the lower limit, Social Security withholds $1 in benefits for every $2 you earn above it. Under the higher limit, it withholds $1 for every $3.

Two examples. You are 63 all year and earn $35,560 in 2027. That is $10,000 over the limit, so $5,000 of benefits is withheld. Or you reach full retirement age in 2027 and earn $70,920 in the months before your birthday month. That is $3,000 over, so $1,000 is withheld.

Try your own numbers in the earnings limit calculator.

The money is not lost

This is the part that gets missed. The Social Security Administration says benefits withheld while you keep working are not lost. Once you reach full retirement age, your monthly benefit is increased permanently to account for the months in which benefits were withheld.

Why the limits change every year

The agency sets the amounts each year under a procedure written into the Social Security Act, so they change from one year to the next. Last year's figure is no use for this year's planning.