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!!!