Social Security in 2026: Why Retirement Now Means Work That Doesn’t Stop with Benefits

Forget the gold watch and the beach house. The new retirement reality is a side hustle that outlives your Social Security check.

The Benefit Cliff Is a Myth

Conventional wisdom said benefits meant you could finally stop. The math in 2026 tells a different story—one where the deposit hits and the laptop stays open. It's not about topping up; it's about not falling behind.

Portfolios Aren't Pension Funds

The old three-legged stool—Social Security, pensions, savings—is wobbling. Pensions are relics. Savings get devoured by inflation that official metrics somehow keep missing. That leaves work as the only lever you can actually pull.

The New Full-Time Gig: Financial Self-Defense

Retirement planning used to be a one-time meeting. Now it's a continuous audit—optimizing benefits, managing tax exposure on freelance income, and hoping the market doesn't sneeze before you've cashed out. It's less about leisure and more about logistics.

Work is the New Safety Net. Get Used to It.

The system was built for a different century. Adapting means accepting that 'retirement' is just a tax status, not an exit plan. The ultimate finance joke? You'll likely be filing a 1099 form from your retirement home. The grind doesn't retire; it just gets a new mailing address.

KEY TAKEAWAYS

• About four in ten Social Security beneficiaries are still working, with the majority having a part-time job.
• Experts have said that Social Security benefits are not keeping pace with retirees' rising expenses, leading many to cut their spending or return to work.

While most Americans stop working once they claim Social Security benefits, many still need to work to keep up with their expenses, a new report found.

In 2022, approximately 40% of Social Security recipients worked at some point after claiming benefits, according to an analysis from the Center for Retirement Research at Boston College. Some of these workers began receiving Social Security benefits before they retired. But others had to return to work to supplement their benefits to make ends meet.

Lawmakers and advocates have argued that Social Security benefits are not keeping up with retirees' rising expenses. Between 2010 and 2024, the annual cost-of-living adjustments for Social Security have not kept pace with inflation, resulting in a loss of approximately 20% of buying power for beneficiaries, according to a report by The Senior Citizens League.

Why This Matters

This report shows that many older Americans are still having to work even after receiving their benefits. For those who do not want to work while receiving Social Security benefits, it is essential to set aside enough money for retirement now, as benefits alone are usually not enough to sustain retirees.

Why Beneficiaries Are Still Working

About 68% of the beneficiaries who are still working claimed their Social Security benefits before their full retirement age.

Researchers at Boston College found that early claimants who are still working are less likely to have a college degree or have a managerial or professional occupation compared to claimants who claimed their benefits after their FRA. This group was also less likely to report they were in good health than those who waited until their FRA.

"For the early claimants, this pattern is consistent with using Social Security benefits to supplement reduced earnings while gradually transitioning out of the labor force," the researchers wrote.

About one in three beneficiaries who are still working claimed their benefits between their FRA and when they turned 69. More beneficiaries who claimed at or after their FRA worked full-time rather than part-time—a trend that is flipped for those who claimed their benefits early.

Early Social Security claims are subject to an earnings test, which discourages full-time work because it reduces benefits. Yet, when claiming after the FRA, the earnings test no longer is a factor.

RELATED EDUCATION

What Social Security Beneficiaries Are Dealing With Now

One reason that some beneficiaries may be going back to work is that their finances are being stretched.

Recently, Social Security beneficiaries have been facing increased financial stressors, which 2026 benefits may not fully account for and could lead to more retirees returning to work.

In 2026, premiums for Medicare Part B, which about 63 million disabled and older Americans have, will eat into beneficiaries' payments. Yet, Social Security will not keep pace with the cost of the federal insurance used by many beneficiaries, as benefits will only increase by 2.6%.

Other increases in grocery and prescription drug prices are also digging into many older adults' budgets. In a recent Nationwide survey, about half of retired Social Security recipients reported cutting discretionary spending, and over a third said they are having to cut back on essentials.