You go to work for the paycheck, obviously. But there can be other benefits to your job, too — an opportunity to socialize or a chance to help others, for example. And while you might not think about it much, it’s also making a difference to your future Social Security checks.
The income you’re earning and paying Social Security taxes on today plays a part in the future benefit you receive, but not always in the way you’d expect.
Will AI create the world’s first trillionaire? Our team just released a report on the one little-known company, called an “Indispensable Monopoly” providing the critical technology Nvidia and Intel both need. Continue »
Image source: Getty Images.
The Social Security Administration bases your benefit on your average monthly earnings over your 35 highest-earning years. If you haven’t hit the 35-year mark yet, you’ll have zero-income years factored into your benefit calculation.
By working in April 2026, you’re ensuring you report income for this year, which will lead to one less zero-income year weighing down your benefit. And the more you earn, the larger your future benefit will be.
Even if you’ve already worked 35 years, working longer could still be to your advantage if you’re earning more today than you did in past years. Your more recent, higher-earning years will slowly edge out your earlier, lower-earning years from your benefit calculation, resulting in larger checks.
The only people this won’t work for are those earning more than $184,500 in 2026. You don’t pay Social Security taxes on income over this amount, so it doesn’t count toward your future benefits.
Working in April 2026 could cost you future Social Security benefits if you’re claiming checks before your full retirement age (FRA). This is 67 for most workers today.
There’s a little-known rule called the earnings test. This withholds $1 from your checks for every $2 you earn over $24,480 if you’ll be under your FRA for all of 2026. If you’ll hit your FRA this year, you only lose $1 for every $3 you earn over $65,160, assuming you earn that much before your birth month.
This money isn’t gone forever. Once you reach your FRA, the government increases your benefit to make up for what it withheld before. However, in the meantime, it could cost you some or even all of your checks.
If you have a question about your benefits, it’s best to contact the Social Security Administration for the most accurate information. It should be able to explain why your checks look different than you expect in a given month.
