As someone who recently started receiving Social Security benefits, this thread has been incredibly helpful! I had the exact same concern when I first noticed my deposit was slightly less than what my verification letter showed. Like many others here, I was worried about fraud or errors. The rounding policy explanation makes perfect sense now - it's just one of those administrative details that isn't well communicated to beneficiaries. I wish SSA would include a simple note on their statements explaining this, as it would save a lot of people unnecessary stress. Thank you to everyone who shared their knowledge and experiences!

This thread perfectly illustrates why I love this community! As someone who's been helping seniors with Social Security questions for years, I can't tell you how common this exact concern is. The rounding policy is probably one of the most misunderstood aspects of SS benefits, and it causes unnecessary panic for so many people. What's frustrating is that SSA could easily prevent this confusion by adding a simple line to their statements like "Payment amounts are rounded down to the nearest dollar." Instead, beneficiaries are left to figure it out on their own or worry that something's wrong. Kudos to everyone who shared their knowledge here - this is the kind of helpful discussion that makes navigating government benefits so much easier!

This has been such an incredibly helpful thread! As someone who's completely new to navigating Social Security decisions, I'm amazed by how much practical wisdom has been shared here. I'm still a few years away from my FRA, but reading about everyone's experiences and considerations is already helping me think through my own strategy. The point about this being both a financial AND lifestyle decision really resonates with me. It's clear that the "right" choice depends on so much more than just maximizing dollar amounts - things like stress levels, family situation, health considerations, and personal risk tolerance all play important roles. What strikes me most is how much more nuanced this decision is than I initially thought. Between the earnings test rules, tax implications, spousal benefits, Medicare coordination, and workplace dynamics, there are so many moving pieces to consider. For those of you who've shared your real experiences - whether you claimed at FRA or waited until 70 - thank you for providing actual outcomes rather than just theoretical advice. It's exactly what someone like me needs to hear when trying to plan ahead. I'm definitely bookmarking this thread and will be checking out those SSA resources that were mentioned. This community is providing way better guidance than anything I've found through official channels!

As someone who just started receiving Social Security at my FRA while continuing to work full-time, I wanted to share my experience since it directly relates to your situation. I was earning about $90K annually when I turned 67 last year, and I was just as confused as you are about whether I could collect benefits without penalties. The good news is that everyone here is absolutely correct - there are NO earnings limits once you reach your FRA. I've been collecting my full monthly benefit for 8 months now while working full-time, and Social Security hasn't reduced my payments by a single penny. The tax situation is exactly as others described - I do pay federal taxes on about 85% of my SS benefits because of my income level, but that's just regular income tax, not a benefit reduction. My accountant helped me adjust my withholdings to handle the extra tax burden, and it's been manageable. What surprised me most was the psychological benefit that @Eloise Kendrick and @Nia Davis mentioned. Having that guaranteed monthly income has completely changed my relationship with work. I'm more relaxed, more creative, and honestly probably a better employee because I'm not constantly worried about job security or economic downturns. One practical tip: when you apply online (which I highly recommend to avoid those phone wait times!), you don't need to do anything special to indicate you're still working. Just apply normally and report your earnings on your annual tax return. Social Security will handle everything automatically. The decision between claiming at FRA vs waiting until 70 is personal, but for me, the peace of mind and financial flexibility of having both income streams has been absolutely worth it. Good luck with whatever you decide!

Reading below it looks like the withholding percentage, say 12% is on the gross and then medicare premiums, etc come out of what is left taken withholding, is this correct?

Just wanted to add one more consideration for your planning - if you have a Health Savings Account (HSA), you can use it to pay for Medicare premiums tax-free once you're enrolled in Medicare! This includes Part B, Part D, and Medicare Advantage premiums. You can't use HSA funds for Medigap premiums though. Also, once you enroll in Medicare, you can no longer contribute to an HSA, but you can still use what's already in there. This could help offset some of those monthly deductions everyone's talking about. Make sure to coordinate your Medicare enrollment timing if you're still working and have employer health coverage - there are some tricky rules around that!

Thank you all for the helpful responses! This has cleared up so much confusion for me. I appreciate the technical details and real-life experiences shared here. I'm going to go ahead with my plan to claim at 62, and my husband will still plan to work until his FRA of 67. Knowing that my early filing won't impact potential survivor benefits gives me peace of mind. I'm also relieved to learn about being able to switch between benefits if circumstances change. Social Security really should make this information clearer on their website and publications!

Just wanted to add one more consideration that might be helpful - since you're planning to claim at 62 and your husband will continue working until 67, make sure you're aware of the earnings test that might apply to your benefits. If you're still working and earning over the annual limit ($22,320 for 2024), Social Security will temporarily withhold some of your benefits until you reach your FRA. However, those withheld benefits aren't lost forever - they get added back to your benefit amount once you reach FRA through a recalculation. Just something to keep in mind as you finalize your plans!

I'm in a very similar situation - turning 67 in October 2025 and still working full-time. After reading through all these responses, I want to share what I learned from my own research that might help clarify things further. The key insight is that SSA uses what's called the "earnings test exempt amount" which is different for the year you reach FRA versus other years. For 2024, the regular annual limit was $22,320, but the special higher limit for your FRA year was $59,520. The 2025 amounts should be announced in October, but they'll likely be around $62,760 as others mentioned. What really helped me understand this was looking at SSA Publication 05-10069 "How Work Affects Your Benefits" - it has clear examples of exactly how they calculate this for people in our situation. One thing I'd add is to keep detailed records of your monthly earnings throughout 2025, especially if you have any irregular income like bonuses or overtime. This will make it much easier to provide accurate information to SSA and avoid any confusion later.

One additional consideration that might be helpful for your planning - since you're making $85,000 annually and turning 67 in September, you should also think about the tax implications of when you start your benefits. Starting benefits in September versus January could affect your tax liability for 2025, especially since you'll have both earned income and Social Security benefits in the same year. Up to 85% of your Social Security benefits could be taxable depending on your "combined income" (adjusted gross income + nontaxable interest + half of SS benefits). With your salary level, you'll likely hit the higher taxation threshold. You might want to run some tax projections for both scenarios - starting benefits in January versus September - to see which timing works better for your overall financial situation. Sometimes the earnings test considerations are just one piece of the puzzle, and the tax impact can be significant enough to influence your decision even when you're under the earnings limits.