Last updated: October 2026
Short answer: In 2027 you can earn up to $25,560 while collecting Social Security before full retirement age (FRA) with no reduction in benefits. Above that, Social Security withholds $1 for every $2 you earn. In the year you reach FRA, the limit is $67,920 and $1 is withheld for every $3 over, counting only earnings before the month you reach FRA. From that month on there is no limit. Both limits rise from 2026 ($24,480 and $65,160), according to the SSA’s 2027 determinations in the Federal Register.
2027 earnings test limits
| Your situation in 2027 | Annual limit 2026 | Annual limit 2027 | Monthly limit 2027 | Amount withheld |
|---|---|---|---|---|
| Under FRA all year | $24,480 | $25,560 | $2,130 | $1 for every $2 over |
| Reach FRA during 2027 (months before FRA only) | $65,160 | $67,920 | $5,660 | $1 for every $3 over |
| Month you reach FRA and after | No limit | No limit | No limit | None |
The Federal Register notice sets the monthly exempt amounts at $2,130 and $5,660 and says the annual amounts are exactly 12 times those figures. The withholding rates and the 2026 limits are from the SSA’s Receiving Benefits While Working page. For most people now approaching retirement, FRA is 67.
What counts as earnings
The SSA counts only wages from a job or net profit from self-employment. Wages include bonuses, commissions and vacation pay. These don’t count:
- Pensions and annuities
- Investment income, interest, dividends and capital gains
- Veterans benefits and other government or military retirement pay
- IRA and 401(k) withdrawals
A retiree living on a pension and portfolio withdrawals can have a large income and still not be affected by the earnings test. A retiree with a part-time job, on the other hand, can be affected.
Worked examples for 2027
Example 1: under FRA all year. Linda is 63 and her benefit is $1,200 a month ($14,400 a year). She earns $35,560 in 2027, which is $10,000 over $25,560. Social Security withholds $5,000 ($10,000 ÷ 2), so she receives $9,400 of her $14,400 for the year.
Example 2: reaching FRA in 2027. Raj reaches FRA in September 2027 and his benefit is $2,000 a month. From January through August he earns $70,920, which is $3,000 over $67,920. Social Security withholds $1,000 ($3,000 ÷ 3) from his pre-FRA months. From September he receives the full $2,000 a month, however much he earns.
Example 3: just under the line. Ana is 64 and earns $25,000. That is below $25,560, so nothing is withheld.
In practice, the SSA usually withholds whole monthly checks until the total is covered. That is why some people get no payment for a few months early in the year.
Withheld benefits are not lost
When you reach FRA, the SSA recalculates your benefit to give you credit for the months it withheld. Your monthly check goes up from then on. Separately, if a year of work is among your highest-earning years, the SSA recomputes your benefit and pays any increase. That increase is retroactive to January of the following year.
So the earnings test is mostly about timing, but timing still matters if you need the cash now. If working is likely to trigger large withholdings, delaying your claim may be simpler. See when to claim Social Security. You can also compare claiming ages with the Social Security breakeven calculator or our explainer on the Social Security break-even age.
The first-year monthly rule
A special rule applies in the first year you retire. The SSA can pay a full benefit for any whole month it considers you retired, whatever you earned for the year. In 2027 that generally means a month in which you earn $2,130 or less, or $5,660 or less if you reach FRA that year. It helps people who earned a full salary before retiring mid-year. Someone who stops work in June after earning $60,000 can still get full benefits for the months after they retire.
Other 2027 changes stack on top. Benefits rise 3.6% starting with January 2027 payments, and the 2027 Social Security COLA calculator shows your new amount. For a rough estimate of your benefit itself, try the Social Security calculator.
Frequently asked questions
How much can I earn on Social Security in 2027?
If you’re under full retirement age all year, you can earn $25,560 without any withholding. In the year you reach FRA, the limit is $67,920 for the months before FRA. After FRA there is no limit.
Does the earnings limit apply after full retirement age?
No. Starting with the month you reach FRA, your earnings no longer reduce your benefits, no matter how much you earn.
Do pensions or 401(k) withdrawals count toward the earnings limit?
No. Only wages and net self-employment earnings count. Pensions, annuities, investment income, interest and government retirement benefits don’t.
Do I lose the benefits that are withheld?
Not permanently. At FRA, the SSA recalculates your benefit to credit the months it withheld, which raises your monthly payment from then on.
What was the earnings limit in 2026?
$24,480 for people under FRA all year and $65,160 in the year you reach FRA. They rise to $25,560 and $67,920 in 2027.
Bottom line: For 2027, an early claimer can earn $25,560 before $1 is withheld for every $2. In the year you reach FRA, the limit is $67,920 with $1 withheld for every $3. Withheld months are credited back once you reach full retirement age. If you’re working and claiming early, estimate your earnings first, then decide whether claiming now or waiting gives you more usable income.