Working Retirees Can Earn $1,080 More In 2027 Before This Social Security Rule Kicks In

The Social Security Administration (SSA) has announced revised 2027 benefit figures, including changes to earnings figures for people who began receiving benefits before their full retirement age (FRA). People can elect to start receiving their benefits at age 62; however, this may reduce their monthly benefit by as much as 30%. In 2026, the FRA is 67, with benefit amounts increasing for people who wait until age 70 to begin collecting.

People who retire early can still work and earn money while receiving Social Security benefits, but there is a maximum amount a person can earn before the SSA begins withholding $1 in benefits for every $2 earned over the limit. In 2026, that Social Security earnings limit went up to $24,480 annually. In 2027, this amount will go up again, this time to $25,560 annually — a $1,080 increase.

It's worth noting that this rule automatically changes in the year in which an early retiree reaches full benefits age. For example, if someone retired early but is turning 67 in May 2027, their earnings limit would be $67,920 for the calendar year prior to reaching FRA — in this instance, January through April 2027. During these months, the SSA would deduct $1 for every $3 earned over the higher earnings limit. Then, once a person reaches full retirement age, their earnings no longer reduce SSA benefits, and their benefits will even be recalculated to credit any of the reduced or withheld amounts taken during early retirement.

If you're considering working during retirement, you aren't alone. According to a March 2026 report from the U.S. Government Accountability Office (GAO), the share of people aged 55 and up in the workforce increased from 15% to 23% over the two decades prior. GAO cited a range of reasons for people working longer, including ones of both necessity and of choice. For instance, some people keep working to save more for retirement or to keep their employer-sponsored health insurance, while others stay for the social interactions.

According to a 2022 study from T. Rowe Price, 48% of retirees cited financial reasons and 45% cited social and emotional benefits as reasons for why they stayed in the workforce. Interestingly, more women than men cited financial reasons, especially single women. This is perhaps because even Social Security's biggest cost-of-living adjustment since 2023 — 3.6% in 2027 — will likely not be enough to keep up with larger inflationary and cost considerations. As the cost of household essentials continues to rise, many older single people likely don't feel that they can afford to retire completely.