A growing number of American seniors are working past age 65, with 23.4% of men and 16.2% of women still employed in 2024. Many are collecting Social Security benefits while working, with 40% doing so. Income limits apply, allowing up to $24,480 in 2026 before benefits are impacted.

Once reaching Full Retirement Age (FRA), the income limit no longer applies, and you can earn any amount without impacting benefits. Retirees have multiple income sources, but only earned income is considered for the SSA earnings test. Passive income like investments or pensions is not included.

The SSA’s earnings test withholds, not eliminates, benefits in early retirement. For example, if you earn $29,000 a year from part-time work, exceeding the limit by $4,520, the agency withholds $2,260. This reduction could impact your benefit amount over the long term. Additional working years can also increase benefits by replacing lower-earning years in your wage record.

Read more at Yahoo Finance: Getting Social Security checks and working at the same time? Here are the new rules you must know for 2026