The next year, 2026, will bring reforms to the Social Security Administration (SSA) in the United States, especially important for those who receive Social Security benefits and have not yet reached full retirement age (FRA). Earnings limits will be modified, with the goal of providing an additional margin before applying reductions. It is important to know the new limits, as they could lead to unexpected reductions in Social Security payments, particularly for those who work part-time or delay withdrawals from their 401(k) plans. The importance of these changes lies in the possibility of carrying out financial planning for retirement that can help avoid financial surprises.
Work and receive Social Security benefits
Many people do not make ends meet solely through Social Security income, so they also have to continue working. As of 2025, if a worker has reached full retirement age, the amount of their benefits will not be reduced, regardless of the work they perform or the salary they earn. However, if that full age has not been reached, there are income limits.
- If you do not reach your FRA in 2025, Social Security will deduct $1 in benefits for every $2 you earn over $23,400.
- If you reach your FRA during 2025, you will lose $1 for every $3 you earn over $62,160, until the month you reach full retirement age.
This economic reduction is not lost forever, but is recovered later. When the worker reaches full retirement age (FRA), Social Security recalculates all benefits in order to compensate for the reductions applied previously. However, it is a temporary reduction in monthly payments.
Changes in salary limits in 2026
The changes expected for the next year, 2026, involve an increase in income limits. Official figures are not yet available, but the increases are estimated to be as follows:
- The $23,400 limit would rise to $24,360.
- The $62,160 limit would increase to $64,800.
These changes in limits mean that those who have not yet reached full retirement age could receive up to $960 more, and those who reach it during 2026 could achieve an additional margin of $2,640.
Impact of these changes
It is important for workers and beneficiaries to be aware of the changes made by the administration. Information regarding these changes is especially crucial for those planning their retirement, as a lack of knowledge about the limits can result in unexpected reductions in Social Security monthly payments. Knowing these limits can help individuals who work part-time to supplement their income or who delay withdrawals from their 401(k) plans.
Knowing this information is helpful for those people who do not have enough savings to stop working, as it provides them with the exact data on how much they can earn without affecting the benefits they may receive. It facilitates retirement planning, allowing them to decide when to apply for benefits, knowing that there will be no financial surprises from the Social Security Administration.
According to experts, there are more tools to increase Social Security benefits, in addition to the changes in salary limits expected for 2026. Knowing how to take advantage of these tools, along with adding optimal planning, could lead retirees to achieve annual income of up to $23,760. 2026 is expected to be a more flexible year and provide some financial relief for those who are forced to combine retirement with work.