I'm about 3 months away from my FRA and have been reading through all these experiences with great interest. The advice about applying 3 months early and checking your earnings record beforehand seems really solid. I had a question about the direct deposit setup - for those who had their banking information already in their mySocialSecurity account before applying, did this speed up the process at all? Or is it something they verify separately during the application review? I'm also wondering if anyone has experience with what happens if you change banks between when you apply and when your first payment is scheduled. I'm in the process of switching to a credit union and want to make sure I time everything correctly. The last thing I want is my first Social Security payment going to a closed account! Has anyone dealt with updating banking info mid-process, and if so, how complicated was it to change?

Just wanted to share my recent timeline for anyone still waiting! I applied online at the end of February and got my approval notification through mySocialSecurity yesterday - exactly 19 days. The process was pretty smooth overall. A couple of things that might have helped: I applied about 10 weeks before my FRA (turning 67 in June), and I spent time beforehand making sure all my documents were ready to upload immediately. One thing I noticed that hasn't been mentioned much - the mySocialSecurity mobile app actually updated faster than the website for me. I got the approval notification on my phone about 6 hours before it showed up when I logged in on my computer. Not sure if that's always the case, but might be worth checking both if you're anxiously waiting like I was! Now just waiting for that first payment in July. Thanks to everyone who shared their experiences here - it really helped manage my expectations during the waiting period.

I've been lurking on this community for a while and finally decided to jump in because this thread is so relevant to my situation! I'm also on SSDI and have been dealing with car troubles for months. Reading through everyone's experiences has been incredibly reassuring - I had no idea that SSDI doesn't have asset limits like SSI does. What really stands out to me is how consistently everyone emphasizes keeping good documentation, even though the car purchase itself doesn't need to be reported. That seems like such practical advice for anyone dealing with government benefits. @Abigail, your insurance settlement situation sounds very straightforward based on what everyone has shared. It's great that you're getting reliable transportation - dealing with a car that keeps breaking down while managing a disability is stressful enough without having to worry about benefit implications! This community has been such an eye-opener for understanding the real rules versus the anxiety-inducing rumors that seem to circulate about SSDI requirements. Thanks to everyone who took the time to share their knowledge and experiences!

I'm new to this community and have been on SSDI for about 4 months now. This thread has been incredibly helpful because I've been in a similar situation - my car has been having major issues and I wasn't sure if replacing it would affect my benefits. Reading through everyone's experiences really clarifies the difference between SSDI and SSI rules. It's such a relief to learn that SSDI doesn't have asset limits and that car purchases don't need to be reported. I especially appreciate all the advice about keeping good documentation even though it's not required - that seems like smart protection. @Abigail, your insurance settlement situation sounds very straightforward based on what everyone has shared. Property damage settlements aren't counted as income, and using those funds for a replacement vehicle makes perfect sense. That Honda Civic sounds like a practical choice for reliable transportation. Thanks to everyone who took the time to share their real experiences and knowledge. This community is such a valuable resource for understanding these complex benefit rules!

To more directly answer your original question: The indexation factors for 2025 retirement calculations use the ratio of the Average Wage Index (AWI) from the year you turn 60 compared to the AWI for each earlier year you worked. For example, if you're turning 62 in 2025 (born in 1963), your indexation year would be 2023 (the year you turned 60). So if the AWI for 2023 was $65,839.55, and the AWI for 1990 was $21,027.98, the indexation factor for your 1990 earnings would be approximately 3.13 (65,839.55 ÷ 21,027.98). Your actual earnings from 1990 would be multiplied by this factor to determine their indexed value. The SSA then takes your highest 35 years of indexed earnings to calculate your Average Indexed Monthly Earnings (AIME), which becomes the basis for your Primary Insurance Amount (PIA).

Just wanted to add that you can also create a my Social Security account at ssa.gov to see your complete earnings history and get benefit estimates. The online tools there will show you exactly how your indexed earnings are calculated, and you can run different scenarios (like working until 65, 67, or 70) to see how it affects your monthly benefit. Since you're 58, this is perfect timing to start planning your optimal claiming strategy. The account also lets you download your Social Security Statement which breaks down the indexation calculations year by year.

Thank you all for the helpful responses! Just to summarize what I've learned: 1. SS counts NET earnings for self-employed people (not gross) 2. It's specifically the amount on Schedule SE line 6 3. They multiply net earnings by 92.35% when calculating for the earnings limit 4. Only earnings before my FRA month (November) count toward the 2025 limit 5. I might be able to shift some income to Nov/Dec to stay under the limit This is such a relief since my net earnings will be under the limit! I'm going to call SSA just to confirm everything (using that Claimyr service someone mentioned since I haven't been able to get through normally). Thanks again for all your help!

As someone who just went through this exact situation last year, I can confirm what others have said - it's definitely your NET earnings that count, not gross! I was terrified I'd gone over the limit because my 1099s totaled around $80k, but after business expenses my actual net was well under the threshold. One thing I learned the hard way though - make absolutely sure you're tracking every legitimate business expense throughout the year, not just scrambling at tax time. The IRS (and by extension SSA) wants to see consistent, reasonable business expenses. I keep a dedicated business checking account and credit card to make the paper trail crystal clear. Also, since you're turning 66 in November, you're in a great position to manage your income strategically for those last few months before FRA. Any chance you can defer some invoicing until after your birthday month?

I'm in a very similar situation and this thread has been incredibly helpful! I'm 65, just started collecting SS benefits a few months ago ($1,650/month), and I'm still working part-time making about $16,000/year. Like so many others here, I had no idea Social Security benefits could be taxable when I first signed up. Reading through everyone's experiences, it's clear that 10% withholding is probably the right choice for our income levels. I'm definitely going to download that W-4V form and get it submitted this week. Better to be safe than sorry! One thing I'm curious about - has anyone here tried using the IRS withholding calculator online to double-check what percentage might work best? I found it at irs.gov and it seems like it might help confirm whether 10% is the right amount for my specific situation. Just thought I'd mention it in case others want to cross-check their decision. Thanks to everyone for sharing their experiences - it's so reassuring to know we're all navigating this together!

I'm 66 and went through this exact same confusion when I started getting SS benefits last year! Nobody warned me that Social Security could be taxable - I thought it was like getting back money I'd already paid in. Boy was I wrong! I ended up owing about $900 at tax time because I had zero withholding. After that wake-up call, I immediately filed the W-4V form for 10% withholding. It's been working perfectly - I actually got a small refund this year instead of owing money. The form is super simple to fill out once you download it from ssa.gov. Just make sure you clearly mark which percentage you want (I almost checked the wrong box!). And definitely mail it certified or take it to the local SSA office in person so you have proof they received it. With your income levels, 10% withholding sounds like the right choice. The peace of mind is totally worth it - no more tax day surprises!