Working and Claiming Social Security Early at the Same Time? A Benefit Cut Could Be in Your Future.

Group 1 - Claiming Social Security benefits early, particularly before reaching full retirement age (FRA), can significantly reduce monthly benefits by up to 30% [2][3] - The earnings test can further diminish Social Security benefits for those still working, with a loss of $1 for every $2 earned over $24,480 for individuals under FRA in 2026 [3][4] - For those who will reach FRA in 2026, the reduction is $1 for every $3 earned over $65,160, which can lead to the complete loss of benefits in certain months depending on salary [3][4] Group 2 - Money lost due to the earnings test is not permanently forfeited; benefits are adjusted upward upon reaching FRA to compensate for withheld amounts, potentially leading to larger monthly benefits for life [5][6] - Once FRA is reached, individuals can earn unlimited income without the risk of losing Social Security benefits, although higher income may increase the likelihood of benefit taxation [6][7] - Delaying the application for Social Security until retirement can result in larger lifetime benefits, as each month of delay increases the eventual benefit amount [7]