Social Security Income Reduction Affects 40% of Retirees Working

Approximately 40% of retirees continue to work while collecting Social Security benefits, according to Boston College's Center for Retirement Research. In 2026, retirees can earn up to $24,480 without impacting their benefits, but every $2 earned above this limit decreases benefits by $1. These reductions only apply to those who have not reached their full retirement age, set at 67 for those born in or after 1960. Although benefits may be reduced, the Social Security Administration recalculates future payments, potentially increasing them accordingly.