Social Security retirement income limit for partial year work in 2026?

Yes, there's a special rule for your first year of retirement! In the year you retire, Social Security uses a monthly earnings test rather than the annual test. For 2026 (using estimated figures), you could earn up to about $1,850/month in any month you're receiving benefits without triggering a reduction. Your pre-retirement earnings from January-June won't affect your benefits starting in July, regardless of how much you earned in those earlier months. So in your case, as long as you have no earnings (or stay under the monthly limit) starting in July 2026 when you begin receiving benefits, what you earned January-June won't matter at all.

this actually depends on ur age. the earnings limit is different if ur at full retirement age (FRA) or not. if ur 65 in 2026, ur not at FRA yet. i think FRA is 67 for u probably. so different rules apply

I just went through exactly this situation last year. Here's what you need to know: 1. For 2026, the annual earnings limit if you're under FRA will probably be around $22,500 (it's $21,240 for 2024 and increases each year). 2. BUT - as mentioned, there's a special rule for first year of retirement. Social Security will pay a full benefit for any month you're "retired" - meaning you earn below the MONTHLY limit (about $1,875) or don't perform substantial services in self-employment. 3. So your $43,500 pre-retirement earnings won't matter at all for your benefits starting in July. 4. IMPORTANT: Make sure you actually tell SSA you'll be retiring mid-year when you apply! I didn't initially, and it caused confusion with my payments.

@profile5 - Yes, there IS an annual earnings limit if you're under Full Retirement Age (about $22,500 in 2026, estimated). And yes, they withhold $1 for every $2 over that limit. BUT (big but) - in the first year you retire, they use a MONTHLY test instead. So the annual limit doesn't apply to the original poster if they stop working completely before claiming benefits.

My sister got caught by this last year. Be super careful if you continue working part-time after starting benefits! She thought she was fine because her yearly total was under the annual limit, but she worked some high-paying consulting gigs after retirement that put her over the monthly limit for several months. SS came back later asking for some benefits back!

Don't forget about the FICA taxes on your pre-retirement earnings! Those actually might increase your benefit amount slightly since your 2026 earnings could replace a lower earning year in your top 35. Not related to your question exactly but something positive to consider.

I tried reaching SSA to clarify this exact same question last month and got disconnected FOUR TIMES after waiting on hold forever!!! SOOOO frustrating!!! 😡

this hole system is so confusing. they make it complicated on purpose i think so people mess up. my cusin lost like 3 months of benefits becuz she didnt know about some rule

One more thing - if you're planning to start benefits immediately after your last day of work on June 30, remember that benefits are paid in the month FOLLOWING the month they're due. So your July benefit (first one) would arrive in August. Plan your cash flow accordingly!

i retired last april but i still did some consulting work afterward and made about $2500 a month for a few months oh man i hope i didnt mess something up!!! nobody told me about any monthly limits!!!

Just to add one more perspective - I'm a former SSA employee and want to emphasize how important it is to apply for benefits at the right time if you're retiring mid-year. You'll want to apply about 3 months before you want your first benefit payment. Since you're planning to retire June 30th and want benefits starting July, you should apply around April 2026. This gives SSA time to process your application and ensures you don't have any delays in receiving your first payment. Also, when you apply, be very clear about your retirement date and that you'll have zero earnings after June 30th - this helps them apply the correct first-year retirement rules from the start.

As someone who just went through this process myself, I want to add that it's also worth considering the timing of when you actually apply for benefits. Even though you're planning to retire June 30th, you can apply up to 4 months in advance. I'd recommend applying in March 2026 (around your 65th birthday) to ensure everything is processed smoothly and you don't have any delays getting your first payment in August. Also, make sure you have all your documentation ready - W-2s, tax returns, etc. The process was much smoother when I had everything organized beforehand. One last tip: consider setting up direct deposit when you apply - it's faster and more secure than waiting for paper checks!

Great question! I just helped my father navigate this exact situation when he retired mid-2024. The key thing to understand is that Social Security has a "special rule" for your first year of retirement that works in your favor. Since you're planning to stop working completely on June 30, 2026, your earnings from January through June won't affect your Social Security benefits at all - even though $43,500 is well above the annual earnings limit. Here's why: In your first year of retirement, SSA uses a monthly earnings test instead of the annual test. As long as you earn less than the monthly limit (approximately $1,850-1,900 for 2026) in each month you're receiving benefits, you're good to go. Since you'll have zero earnings starting in July when your benefits begin, this rule protects you completely. One important tip: When you apply for benefits (which you should do around March 2026), make sure to clearly communicate your retirement date and that you'll have no earnings after June 30th. This ensures they apply the first-year retirement rule correctly from the start and avoid any confusion later.

I have seen where this 1st year rule is going to expire in 2025. I had planned to retire April 1st. Do we know if this is part of the changes happening in 2026. Sounds like from your answer below I would be fine collecting in 2026. I know I would be over the yearly limit by then.

I haven't seen any reliable information about the first-year retirement rule expiring in 2025 or 2026. This rule has been part of Social Security law for many years and is codified in the Social Security Act. However, I'd strongly recommend checking directly with SSA or reviewing official SSA publications to confirm current rules for your specific retirement timeline. If you're planning to retire April 1st and would be over the yearly earnings limit, it's definitely worth getting official confirmation about which rules will apply to your situation. The earnings limits and rules can be complex, and getting accurate information directly from Social Security will give you the most reliable guidance for your retirement planning. You might also want to consult with a Social Security expert or use the calculators on the official SSA website to model different retirement scenarios based on current and projected rules.

As someone who's been researching retirement planning myself, I want to thank everyone for this incredibly helpful discussion! The distinction between the annual earnings test and the monthly test for first-year retirees is something I definitely didn't understand before reading through all these responses. One question I have - for those who have gone through this process, did you find that SSA automatically applied the first-year retirement rule correctly, or did you need to specifically request it or provide additional documentation? I'm wondering if there are any steps we should take proactively to ensure the rule is applied properly from the start, rather than having to sort it out after the fact. Also, I'm curious about the timing of when SSA actually calculates whether you've exceeded the monthly limits. Do they check this in real-time as you report earnings, or is it something they review after the year ends? Understanding the process might help avoid any surprises or temporary benefit holds.

This discussion has been incredibly informative! As someone approaching a similar situation (planning to retire at 66 in late 2026), I had the same concerns about mid-year retirement and earnings limits. The clarification about the first-year retirement rule using monthly rather than annual earnings tests is a game-changer for planning purposes. One additional consideration I'd like to add - if you're planning to retire mid-year, it might be worth reviewing your health insurance situation as well. Many employer health plans end at the end of the month you retire, so if you retire June 30th, your coverage might end July 31st. Make sure you have a plan for bridging to Medicare (if eligible) or COBRA coverage so you don't have a gap. Also, for tax planning purposes, retiring mid-year with high earnings in the first half might put you in an interesting position for estimated tax payments. You might want to consult with a tax professional to make sure you're not underpaying throughout the year, especially since your Social Security benefits will be taxable income in the second half of 2026. Thanks to everyone who shared their experiences - this thread should be bookmarked by anyone considering mid-year retirement!

As someone new to this community and just starting to research Social Security benefits, this entire discussion has been incredibly eye-opening! I had no idea there was a difference between annual and monthly earnings tests, or that there was a special first-year retirement rule at all. Reading through everyone's experiences and explanations, it seems like the key takeaways for mid-year retirees are: 1) The monthly earnings test in your first year of retirement protects your pre-retirement earnings from affecting benefits, 2) Clear communication with SSA about your retirement date when applying is crucial, and 3) There are several other factors to consider beyond just Social Security (health insurance, taxes, etc.). For those who have successfully navigated this process, did you find the SSA representatives were knowledgeable about the first-year retirement rule when you spoke with them? I'm wondering if it's something that comes up commonly enough that most agents are familiar with it, or if you had to educate them about the rule during your conversations. This thread should definitely be pinned or saved somewhere - the collective knowledge shared here is invaluable for anyone planning a mid-year retirement!

As someone new to this community, I'm amazed by how helpful this discussion has been! I'm in a similar situation - planning to retire in August 2026 at age 64 and was really worried about the earnings impact. The explanation about the first-year retirement rule using monthly limits instead of annual limits is such a relief! One thing I'm curious about - does anyone know if there are any income sources that DON'T count toward the earnings limit? For example, if I have some rental property income or dividend income after I retire, would that affect my Social Security benefits? Or does the monthly earnings test only apply to wages and self-employment income? Also, for those who mentioned applying 3-4 months in advance, is there any downside to applying even earlier? I'm a planner by nature and would love to get the application submitted as soon as possible to avoid any last-minute stress. Thanks to everyone who has shared their experiences - this thread has been more informative than hours of reading SSA publications!

As someone new to this community and just starting to think about retirement planning, this entire thread has been absolutely invaluable! I'm still a few years away from retirement, but reading through all these detailed explanations about the first-year retirement rule has completely changed how I'm thinking about timing my retirement. The distinction between the annual earnings test and the monthly earnings test for first-year retirees is something I never would have discovered on my own. It's reassuring to know that if I decide to retire mid-year, my pre-retirement earnings won't penalize my Social Security benefits as long as I stop working completely. I'm particularly grateful for all the practical advice shared here - from the timing of when to apply (3-4 months in advance) to the importance of clearly communicating your retirement date to SSA upfront. The additional considerations about health insurance transitions and tax planning for mid-year retirement are also really helpful context that goes beyond just the Social Security rules. For those who have successfully navigated this process, thank you for sharing your real-world experiences. It's clear that while the rules can be complex, proper planning and clear communication with SSA can make the transition much smoother. This thread should definitely be a resource for anyone considering mid-year retirement!

As a newcomer to this community, I want to echo what others have said - this thread has been incredibly enlightening! I'm currently 62 and considering when to retire, and the first-year retirement rule is completely new information to me. One question I haven't seen addressed: if someone retires mid-year but then decides to go back to work part-time later in that same year (let's say October), would they lose the protection of the first-year retirement rule? Or does it only apply to the months before you start receiving benefits? Also, I'm wondering about the interaction between this rule and delayed retirement credits. If you're past full retirement age when you retire mid-year, do you still get the monthly earnings test benefit, or do the delayed retirement credit rules take precedence? Thank you to everyone who has shared their experiences - this is exactly the kind of practical information that's so hard to find in official publications but makes all the difference in real-world planning!

As someone new to this community and retirement planning in general, this discussion has been absolutely fascinating! I had no idea about the first-year retirement rule and how it protects pre-retirement earnings through the monthly earnings test instead of the annual limit. What really stands out to me is how this rule seems to be poorly understood even by some SSA representatives, based on the experiences shared here. It makes me wonder - are there other "hidden" Social Security rules that could significantly impact retirement planning that most people don't know about? Also, I'm curious about documentation - when you apply and mention your mid-year retirement date, do you need to provide any specific proof that you'll stop working completely? Like a resignation letter or something formal from your employer? Or do they take your word for it and then verify later through earnings reports? This thread should definitely be required reading for anyone approaching retirement! The combination of official rule explanations and real-world experiences is incredibly valuable.

As someone completely new to Social Security planning, this thread has been absolutely incredible! I had never heard of the first-year retirement rule before reading through all these responses, and it's such a relief to understand how the monthly earnings test works for mid-year retirees. What strikes me most is how this rule seems to be one of those "insider secrets" that can make a huge difference in retirement planning, but isn't widely known or well-explained in most general Social Security information. The fact that you can earn $43,500 in the first half of 2026 and it won't affect your benefits at all (as long as you stop working completely before claiming) seems almost too good to be true! I'm also impressed by how many practical tips have been shared here - from applying 3-4 months early to being very specific about your retirement date when you apply to SSA. These real-world insights from people who have actually been through the process are so much more valuable than just reading the official publications. For those still researching this topic, it sounds like the key is to be very proactive and clear in your communication with SSA about your specific timeline and earnings situation. Thank you to everyone who has shared their experiences - this discussion should definitely be bookmarked by anyone considering mid-year retirement!