Here’s a bold truth: Navigating Social Security rules can feel like walking through a financial minefield, especially when it comes to the dreaded ‘earnings test.’ But here’s where it gets controversial: Can you actually stop your Social Security payments if you exceed the income limit, and what does it really cost you? Let’s break it down in a way that even beginners can understand.
Imagine this: You’ve decided to start collecting Social Security before reaching your full retirement age, but you’re still earning an income. In 2026, if you make more than $24,480, the earnings test kicks in, reducing your benefits by $1 for every $2 you earn above that limit. And this is the part most people miss: While the money withheld isn’t lost forever—it’s gradually added back to your benefits later—you’re still missing out on the higher benefit amount you’d get if you’d waited until full retirement age to claim.
Now, here’s the silver lining: Once you hit full retirement age, you can suspend your Social Security payments entirely. At that point, the earnings test no longer applies, and you can start building delayed retirement credits. For every year you delay between full retirement age and age 70, your benefit increases by 8%. For most people, that 24% boost (plus cost-of-living adjustments) makes waiting well worth it.
But here’s the controversial question: Is it smarter to take reduced benefits early and invest the money yourself, or should you play the long game and wait for that guaranteed boost? It’s a debate that divides even financial experts. What’s your take? Let’s discuss in the comments.
For more insights, check out Liz Weston’s other advice on topics like share-secured loans (https://www.oregonlive.com/business/2026/01/liz-weston-what-are-share-or-deposit-secured-loans-and-who-offers-them.html) and setting up 529 accounts for grandchildren abroad (https://www.oregonlive.com/business/2026/01/liz-weston-can-i-set-up-a-529-account-for-a-grandchild-who-lives-abroad.html). Liz, a Certified Financial Planner and personal finance columnist for NerdWallet, is here to help. Send your questions to 3940 Laurel Canyon, No. 238, Studio City, CA 91604, or use the ‘Contact’ form at asklizweston.com (https://asklizweston.com/).
