What an incredibly thorough and helpful discussion! As someone who just joined this community after recently turning 62 myself, I'm amazed by the depth of knowledge and real-world experience shared here. @CosmosCaptain - your situation really resonates with me, though I haven't had the success of selling a business for such a substantial amount. Congratulations on that achievement! One angle I haven't seen discussed much is the psychological benefit of having that business sale "cushion" during these decision-making years. Knowing you have $875K plus your 401(k) means you can make this choice from a position of strength rather than financial stress. That alone is probably worth considering in your decision framework. The consensus here seems strongly in favor of waiting until FRA, and the math certainly supports it. But I'm curious - have you considered a hybrid approach? For instance, using a portion of your business proceeds to purchase a deferred income annuity that would kick in at your FRA, essentially creating your own "bridge" strategy? This could give you some guaranteed income peace of mind while still allowing you to delay Social Security for the higher benefit. Just a thought from someone watching this discussion and thinking about my own upcoming decisions. This thread should be required reading for anyone approaching retirement with substantial assets!

What an excellent thread! As someone who works with retirees on Social Security optimization, I wanted to add one more perspective that could be valuable. Given your substantial assets and the fact that you're leaning toward waiting until FRA, consider implementing what's called a "Social Security replacement strategy" during the waiting period. Instead of just living off your business sale proceeds randomly, calculate what your monthly Social Security benefit would be if you claimed now ($2,250) and set up automatic monthly transfers of that amount from your investment account to your checking account. This serves multiple purposes: 1) It simulates your retirement cash flow and helps you adjust to living on a "fixed income," 2) It preserves the bulk of your assets while giving you practice with retirement budgeting, and 3) It makes the waiting period feel more intentional rather than just delaying. Meanwhile, invest the remaining business proceeds conservatively to preserve capital, since you know you'll need to draw from it for about 3 years until FRA. This approach essentially lets you "test drive" retirement while still capturing that 8% annual increase in your eventual Social Security benefit. The beautiful thing about your situation is that you have enough assets to make this decision purely on optimization rather than necessity. That's the reward for 25 years of successful business ownership!

I'm dealing with a very similar situation and your post really resonates with me! I'm 64 and have been on early retirement benefits for about two years. Like you, I work part-time (at a local bookstore) and got caught off guard this year when some unexpected overtime during our holiday rush pushed me over the earnings limit. What I've learned from my research and talking to others here is that your FRA year (2026) will definitely be more manageable. You'll get that higher earnings limit (likely around $59,000-60,000) that only applies to your January-July earnings, and the penalty rate drops from $1-for-$2 to $1-for-$3 if you do go over. Plus once you hit FRA in July, you're completely free from earnings limits forever! For your current $1,240 overage, they'll probably withhold around $620 from your early 2026 benefits, but you should get advance notice. One thing I'm planning to do differently next year is have a conversation with my manager about getting advance notice of busy periods so I can make informed decisions about extra shifts. The tracking spreadsheet idea that others mentioned sounds really smart too. I'm going to start monitoring my earnings monthly instead of just hoping I stay under the annual limit. It's frustrating to navigate these rules, but we're both so close to FRA when all this stress goes away permanently. Hang in there!

I'm also approaching my FRA next year (turning 67 in August 2026) and have been dealing with similar earnings limit stress! What really helped me prepare was calling SSA in October to get specific information about my situation. They confirmed that for 2026, the earnings limit for the months before FRA will be around $59,520, and crucially, they only count earnings from January through July (the month before I reach FRA). One thing I learned that might help you: if you're concerned about going over the limit again next year during your busy spring season, you can actually request that SSA temporarily suspend your benefits for specific months when you know you'll be earning more. This gives you more control than having them surprise you with withholdings later. Also, make sure you understand both the annual AND monthly tests for your FRA year. Even if your total January-July earnings are under $59,520, if you earn more than about $4,960 in any single month before FRA, they might still withhold benefits for that specific month. The good news is that July 2026 will be here before you know it, and then you can work unlimited hours without any penalties! I'm counting down the days myself. All these calculations and stress will finally be behind us.

I'm currently going through this exact same situation! Filed my application in mid-October and it's been stuck on Step 2 for about 8 weeks now. Like many others here, I also have government employment history - worked for a state agency for 11 years with a pension. Reading through all these comments has been so enlightening, especially the explanation from the retired SSA specialist about WEP reviews. I had no idea that government pensions could trigger such lengthy manual verification processes! The MySocialSecurity messaging approach sounds promising - I'm going to try that today and specifically mention my state employment history. It's incredibly frustrating not having transparency about what's happening, but at least now I understand this is likely a legitimate review process rather than my application being lost or forgotten. Thanks to everyone for sharing their experiences and advice - it's reassuring to know I'm not alone in this waiting game!

I'm dealing with almost the exact same situation! Filed my Social Security application in early November and it's been stuck on Step 2 for about 7 weeks now. Like several others here, I also have government employment history - worked for a municipal water department for 14 years with a pension. This entire thread has been incredibly eye-opening, especially the retired SSA specialist's explanation about WEP reviews. I had absolutely no clue that government pensions could trigger such lengthy manual verification processes! It's so frustrating that this information isn't communicated upfront when you apply. Based on all the great advice here, I'm going to send a detailed MySocialSecurity message today specifically mentioning my municipal employment history and asking for status updates. The suggestion about contacting the pension system directly to ask them to prioritize their response to SSA is genius - I'm definitely going to try that approach too. It's oddly comforting to see so many of us in the same boat with government employment delays. Thanks to everyone for sharing their experiences and strategies - this gives me hope that persistence and the right approach will eventually get us through this process!

my aunt just went thru this! if u get denied don't give up, she got denied first time then got a lawyer and won her case. her disability on her dead husbands record is like $2200/month i think

I work as a benefits counselor and wanted to add some practical advice for your situation. Since you're 56 applying for DWB, you're in a good position age-wise, but the medical evidence will be crucial. For getting benefit estimates, I've found success with this approach: Call the national number (1-800-772-1213) and specifically ask to speak with a "Technical Expert" about "Disabled Widow's Benefits calculation." Don't just ask for a general estimate - be very specific about what type of benefit you're requesting information about. Also, since your son's benefits will end when he turns 18, make sure you understand the "family maximum" rules. Right now, your family's total benefits are likely subject to a family maximum cap. When your son's benefits stop, your DWB amount won't increase to compensate - it will remain the same percentage of your husband's PIA. One more tip: Start gathering ALL your medical records now, including mental health records if applicable. The more complete your medical file, the better your chances of approval on the first try. Good luck with your consultative exam!

Great advice from everyone here! Just wanted to add one more thing that might be helpful - if you do decide to cash out the pension, consider consulting with a tax professional beforehand. Lump sum pension distributions can have significant tax implications, especially if it pushes you into a higher tax bracket for that year. You might end up owing more in taxes than expected, which could eat into the funds you need for the medical equipment. Some people find it beneficial to roll part of the pension into an IRA to spread out the tax burden. Just another consideration for your financial planning!

As someone who works with disability benefits, I want to emphasize something that might get overlooked - if you're considering cashing out the pension, make sure you understand the "spend down" requirements for any means-tested benefits you might have. For programs like MSP (Medicare Savings Program) that you mentioned, there's usually a monthly income test AND a resource/asset test. A large lump sum pension withdrawal could temporarily disqualify you from these programs even if you spend the money quickly on medical equipment. Some states have "spend down" provisions where you can regain eligibility once your resources drop below the limit again, but there might be a gap in coverage. It's worth asking your state Medicaid office about their specific spend-down rules and whether there are any exceptions for medical expenses before you make the withdrawal.