How Can Working in Retirement Impact Medicare & Social Security Benefits?

People may continue working for income, purpose or flexibility. If work remains part of your retirement, coordinate earnings with Social Security, Medicare and portfolio withdrawals rather than treating each decision separately.

This guide explains the benefit and coverage rules to review when employment continues alongside retirement income.

Working While Receiving Social Security Benefits

For Americans approaching retirement age, the current “full” retirement age is between 66 and 67 depending on when you were born, although you’re eligible to begin collecting benefits at 62.

If you find yourself in between these two thresholds, you can keep working while collecting Social Security, although there’s a limit to how much you can earn before your benefits are reduced. This is known as the Social Security earnings limit, and there are two cut-offs that bear consideration.

Both limits are adjusted each year. For 2026:

• Before the year you reach full retirement age: if you earn more than $24,480, your benefits are reduced by $1 for every $2 you earn above that amount.
• In the year you reach full retirement age: if you earn more than $65,160, your benefits are reduced by $1 for every $3 above that amount, but only until the month you reach full retirement age.

In some cases, if you earn enough, all of your Social Security benefits may be withheld while you're working.1

At full retirement age, SSA recalculates your monthly benefit to account for months when benefits were withheld because of work. This is not an automatic lump-sum refund. The earnings test ends at full retirement age, but work and other income can still affect taxes and Medicare premiums.

Working While Receiving Medicare Benefits

Medicare Part A coverage is generally available premium-free to people 65 or older, provided they worked and paid Medicare taxes for long enough – typically for a period of at least 10 years.2

If you (or your spouse) are still working at 65, this may impact your Medicare premiums depending on your situation:3

You Have Current-Employment Coverage With 20 or More Employees

If you are covered by a group health plan based on your or your spouse's current employment, you may be able to delay Part B. Confirm how the plan coordinates with Medicare before deciding; employer size and the nature of the coverage matter.

The Part B special enrollment period generally lasts eight months after the employment or group coverage ends, whichever happens first. COBRA does not extend that deadline. See Medicare's enrollment guidance.

If you contribute to a health savings account, check the timing before applying for Medicare. Medicare enrollment ends eligibility to contribute to an HSA, and premium-free Part A can begin retroactively, affecting earlier contributions. Review Medicare's working-past-65 guidance before contributing or enrolling.

You Work at a Company With Fewer Than 20 Employees

Medicare generally pays first in this situation. Ask the benefits administrator when to enroll in Parts A and B; relying on the employer plan alone can leave coverage gaps.

You Are Self-Employed or Have Retiree Coverage

Check whether your coverage qualifies as a group health plan based on current employment. Individual, Marketplace, COBRA and retiree coverage should not be assumed to provide the same enrollment protection.

If you have retiree coverage, ask the benefits administrator how it coordinates with Medicare and whether enrollment in both Parts A and B is required.

If you earn a higher income while on Medicare, you may pay an extra premium for Part B and prescription drug coverage, known as the income-related monthly adjustment amount (IRMAA):

• Standard Part B premium: $202.90 per month in 2026.
• When surcharges start: modified adjusted gross income above $109,000 for single filers or $218,000 for joint filers.
• Two-year look-back: surcharges are based on your federal tax return from two years earlier.4

The CMS 2026 premium tables confirm those year-specific amounts. Because of the look-back, a final high-earning year or a large Roth conversion can affect premiums later; our Roth conversion and IRMAA guide explains that timing.

Other Considerations

Your earnings record, claiming age and household circumstances also affect the Social Security benefit available:

• Work history: your monthly benefit is based on your top 35 inflation-adjusted earning years.5
• When you claim: your monthly benefit increases the longer you wait to collect, until age 70.
• Survivor benefits: delaying a worker's benefit can affect the amount available to an eligible surviving spouse. Eligibility, claiming age and the survivor's own benefit matter; do not assume both spouses' full benefits continue after a death.

Work, benefits and portfolio withdrawals should fit one retirement plan. Schedule a free, no-obligation introductory meeting with Todd to discuss the decisions ahead and the coordination your situation may need.

This material is intended for informational/educational purposes only and should not be construed as tax, legal or investment advice, a solicitation, or a recommendation to buy or sell any security or investment product. Investments are subject to risk, including the loss of principal. Some investments are not suitable for all investors, and there is no guarantee that any investing goal will be met. Certain sections of this material may contain forward-looking statements. Forward-looking statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Past performance is no guarantee of future results. Third-party links are provided to you as a courtesy. We make no representation as to the completeness or accuracy of information provided at these websites. Information on such sites, including third-party links contained within, should not be construed as an endorsement or adoption of any kind. Please consult with your financial professional and/or a legal or tax professional regarding your specific situation and before making any investing decisions.

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Endnotes

1 “Receiving Benefits While Working.” Social Security Administration. https://www.ssa.gov/benefits/retirement/planner/whileworking.html.

2 “What Does Medicare Cost?” Medicare.

https://www.medicare.gov/basics/get-started-with-medicare/medicare-basics/what-does-medicare-cost.

3 “Working Past 65.” Medicare.

https://www.medicare.gov/basics/get-started-with-medicare/medicare-basics/working-past-65.

4 “Medicare Premiums: Rules for Higher-Income Beneficiaries.” Social Security Administration. https://www.ssa.gov/benefits/medicare/medicare-premiums.html.

5 Social Security Administration. https://www.ssa.gov.