"One of the most overlooked changes to Social Security has to do with the rules for working while collecting benefits. For many seniors who have saved too little, collecting Social Security benefits alone is not enough to support them, and they don't have much savings to fall back on. This could mean that they need to double dip and get a paycheck and Social Security benefits at the same time."
"Unfortunately, there are some rules surrounding this that could make supporting yourself this way in retirement more difficult. Specifically, if you earn above a certain amount of money and you are under your full retirement age (FRA), you will begin to lose some of your Social Security benefits. In fact, you could find that entire checks, or even all of your benefits, disappear once you start working during your retirement."
Social Security rules change slightly each year, including Cost of Living Adjustments and full retirement age adjustments. A less-noted change involves rules for working while collecting benefits, which can reduce benefits for those below full retirement age. If earnings exceed a specified threshold, Social Security benefits are withheld or reduced, potentially eliminating monthly checks when combining a paycheck and benefits. Many retirees with limited savings rely on both wages and benefits, making the earnings test a significant financial risk. The rule changes scheduled for 2026 may alter withholding thresholds or calculations, affecting long-term financial security for working beneficiaries.
Read at 24/7 Wall St.
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