One other thing to consider is that if your brother passes away (hopefully not for many decades!), your SIL would be eligible for survivor benefits. Those are calculated differently than spousal benefits. As a widow, she could get 100% of what your brother was receiving if she's at her full retirement age when she claims survivor benefits. However, if she claims survivor benefits early, they'll be reduced. The reduction factors for survivor benefits are different than for retirement or spousal benefits. This is why Social Security planning for couples often involves considering the higher earner delaying as long as possible (to age 70 ideally) to maximize the survivor benefit for whichever spouse lives longer.

After reading through this whole thread, I think your SIL has essentially three options: 1) Claim now at 63 and accept permanent reductions to both her retirement AND spousal benefits. This gives her income now but less income later. 2) Wait until her FRA to claim either benefit. This maximizes her spousal benefit when your brother claims. 3) A compromise approach: If she absolutely needs income now, she could consider whether she qualifies for any other benefits (like spousal benefits from a previous marriage if applicable) or look at other income sources to bridge the gap until FRA. The deemed filing rules that took effect for people born after January 1, 1954, eliminated many of the clever claiming strategies that used to exist. Now, when you file for one benefit, you're effectively filing for all benefits you're eligible for.

Has anyone tried adjusting their withholding after starting benefits? I initially had 7% withheld but want to increase it. Is it a big hassle to change it?

One thing to keep in mind: even though Michigan doesn't tax Social Security benefits, your total income will affect whether your pension is taxable in Michigan. The rules depend on your birth year and filing status. For someone born after 1952, there's a limited pension/retirement income deduction once you reach age 67. For 2025, the deduction is around $22,000 for single filers and $45,000 for married filing jointly (these numbers get adjusted). So while your SS isn't taxed by Michigan, it might affect the taxation of your other retirement income. This might be why there was confusion.

my daughter got approved last month and we couldn't see her account either. we got the approval letter in the mail about 10 days after her lawyer called us. the letter had all the information in it - monthly payment, back pay, medicare info, everything. just wait for the mail, it's coming.

Something nobody's mentioned - if you were receiving SSI while waiting for SSDI approval, your back pay might be reduced because of this (called "windfall offset"). Also, if you owe child support, have defaulted student loans, or certain other government debts, they can take that from your backpay too. The lawyer definitely knows your basic monthly amount though.

Something else to consider: if you have any periods of employment where you DID pay into Social Security (outside of your non-covered pension job), you might qualify for your own Social Security benefit. If that's the case, you wouldn't be subject to GPO on those benefits - only on the spousal/survivor benefits. This could potentially increase your total retirement income. Do you have any work history outside of your pension-covered employment?

That could absolutely make a difference! Those 8 years of covered employment would contribute to your own Social Security benefit, which would not be reduced by GPO (though it might be affected by WEP, but differently). In fact, if your own benefit is higher than your reduced spousal benefit, you'd receive your own instead. When your husband passes, you'd then get the higher of: your own benefit OR your reduced survivor benefit. Having multiple income sources can significantly improve your financial situation. I strongly suggest getting a Social Security benefits analysis to see exactly how these calculations would work in your specific case.

If you need absolute clarity for your foreign bank, you can request a more detailed Benefits and Earnings Statement from SSA that shows the exact calculation including cents. This might take a few weeks to receive but will have your precise benefit amount with all calculations shown. Though based on everything said here, this seems like a standard rounding vs truncation issue that most financial institutions are already familiar with.

Thanks everyone for the helpful explanations! I feel much better knowing this is a common thing with how SSA handles reporting versus payment amounts. I'll go ahead with my foreign bank application using the verification letter, and if they ask about the $1 difference, I'll explain about the rounding versus truncation policy. Really appreciate all your insights!

I hate to be that person but are you SURE you got the right info? When I went through this 2 years ago, the person at SSA told me it was a 3-way split of the family maximum minus the primary beneficiary (my husband). Did your letter specifically say they subtracted YOUR benefit from the family maximum? That doesn't sound right to me.

seems like ssa rules are designed to be confusing on purpose!! my mom tried for YEARS to get a straight answer about her widow benefits with my disabled brother still receivinh benefits. eventually she just gave up and took whatever they gave her 😡

To clarify a few points about your specific situation: 1. At 65, you're under your FRA of 66+10 months, so the earnings test applies to your survivor benefits. 2. With earnings of $55,000, approximately $16,880 would be withheld from your annual survivor benefit (($55,000 - $21,240) ÷ 2). 3. If your monthly survivor benefit would be $2,000, for example, that's $24,000 annually. After the reduction, you'd still receive about $7,120 per year or roughly $593 per month. 4. Once you reach your FRA, the earnings test disappears completely. You can earn any amount without reduction. 5. At FRA, you can then decide whether to keep the survivor benefit or switch to your own retirement benefit, whichever is higher. There's no downside to applying for survivors now, even with the reduction. Any amount you receive is money you wouldn't otherwise get, and it doesn't impact your future retirement benefit.

One thing that hasn't been mentioned: if your late wife's benefit at her FRA would have been HIGHER than your own benefit at your FRA, you might want to consider a different strategy! You could: 1. Take your OWN reduced retirement benefit now at 65 2. Then at your FRA, switch to the FULL survivor benefit This works if her benefit > your benefit. The calculations get complicated, so you really should discuss with an SSA representative who can run the numbers for your specific situation.

but what about medicare??? doesnt it start at 65? does that effect when u should file for ss?

Thank you everyone for all this helpful information! I think I've decided to wait until at least 65 to claim benefits, for several reasons: 1. The earnings test would reduce my benefits significantly if I claim at 62 while still working part-time 2. The 29% higher monthly amount ($510 more per month) will add up substantially over time 3. The survivor benefit consideration for my wife is important - I want to make sure she's well taken care of 4. My family history suggests longevity, so the break-even point of 75-76 likely makes waiting worthwhile I'm going to try to speak with SSA directly to get personalized calculations before making the final decision. Thanks again for all your insights!

Just curious why ur taking SS at 63 and still working??? Wudnt it make more sense to just keep working and wait till FRA or even 70 to start SS? Your monthly payment wud be way higher and no earnings limit to worry about.

I just went through this exact situation last year! You absolutely CAN earn the entire amount in a shorter period. I worked January-April, made about $21,000, then completely stopped working and had zero issues with SSA. Just make sure you're tracking your YTD earnings carefully. The only thing that tripped me up was I had to explicitly tell my employer I was "retiring" even though I was just quitting that job. This stopped them from contesting my unemployment when I applied for it during the months I wasn't working or collecting SS yet.

Thank you all for the helpful information! I checked my settlement agreement paperwork more carefully, and it's all categorized as compensation for injury, medical expenses, and pain/suffering. Nothing for lost wages. Based on all your advice, it sounds like I don't need to report this to Social Security since it won't affect my retirement benefits. I'll still keep track of my actual work earnings carefully since I'm doing some part-time consulting work and need to stay under that $22,320 limit for 2025. Really appreciate everyone sharing their experiences!

Glad you got it sorted! One more thing - when I had to finally call Social Security about something else, I was on hold for 3.5 HOURS!!! Next time I needed to talk to them, I tried that Claimyr service someone mentioned above and got through in like 20 minutes. Worth every penny just for my sanity lol. Good luck with your new retirement!