I work as a benefits counselor and can confirm what others have said - IRA contributions absolutely DO count toward the Social Security earnings limit. The SSA uses your gross wages (before any deductions) to calculate whether you've exceeded the annual limit. One additional tip I always give clients in your situation: consider asking your employer if they can structure your compensation differently. For example, if they were planning to give you a small raise, you might ask them to contribute that amount to a workplace retirement plan instead (if available) OR provide non-cash benefits like additional health coverage. While retirement contributions still count as earnings, some employer-provided benefits might not. Also, double-check that you're using the correct earnings limit. Since you're 63 and won't reach Full Retirement Age until later, you're subject to the lower annual limit ($22,320 for 2025). The year you reach FRA, there's a higher monthly limit that applies only to earnings before the month you reach FRA. Keep excellent records of all your earnings throughout the year - it will save you headaches later!

As someone who just went through this process at age 62, I can confirm what everyone else is saying - IRA contributions definitely count toward your earnings limit. I learned this the hard way when I was trying to maximize my retirement savings while working part-time. What I found helpful was setting up a simple spreadsheet to track my year-to-date earnings every month. I included columns for gross pay, cumulative total, and how much "room" I had left before hitting the $22,320 limit. This helped me make informed decisions about picking up extra hours or saying no to overtime. One thing I wish someone had told me earlier: if you're close to the limit near the end of the year, you might want to consider taking unpaid time off rather than risk going over. The penalties for exceeding the limit can really hurt your monthly benefit payments. Also, don't forget that investment income (like dividends or interest from your IRA) doesn't count toward the earnings test - only wages and self-employment income do. That might give you some additional flexibility for your financial planning. Good luck navigating this - it's definitely one of the more confusing aspects of early retirement benefits!

One other benefit to consider: if you work after starting Social Security benefits and pay FICA taxes, the SSA will automatically recalculate your benefit amount annually. If your current earnings are higher than one of the 35 years used to calculate your initial benefit, your benefit amount could actually INCREASE. So working could potentially give you a permanent raise in your Social Security payment!

Just wanted to add my experience as someone who went through this exact situation last year. I reached my FRA at 66 and 8 months, then went back to work full-time making about $55,000. My Social Security benefits continued without any reduction whatsoever. The only surprise was that my tax bill was higher at the end of the year since more of my SS became taxable, but that's just regular income tax - not a penalty or reduction in benefits. Also, make sure to factor in that you'll be paying FICA taxes again on your wages, but as others mentioned, this could actually boost your future SS payments if your current salary is higher than some of your lower earning years from the past. Definitely take the job if you need the income - the earnings test really does disappear completely once you hit FRA!

wait i just rememebred my cousin's husband did something with his pension and military time??? i think he got some kind of exception because he was in the military before being a firefighter? maybe theres exceptions for some people??

Just wanted to add my perspective as someone who went through this exact decision two years ago. I was a teacher in California for 28 years and faced the same GPO situation with my husband's Social Security. We ultimately decided to take the monthly pension instead of the lump sum, and here's why: even though the GPO reduces my spousal benefits, the guaranteed monthly income from the pension provides more security than trying to manage a large lump sum in this volatile market. The peace of mind knowing we have that steady income stream has been worth more than any potential investment gains. Plus, our pension has COLA adjustments which helps with inflation - something you lose with a lump sum. The GPO is frustrating but it's just one factor in a much bigger retirement picture.

This is such valuable information for grandparents! I wanted to add something that might help - if you're concerned about proving the parents aren't providing support (like Sofia mentioned), you can also ask SSA about getting a "Statement of Non-Support" form. This is something the absent parents can sign (if you can locate them) or you can provide an affidavit explaining their absence and lack of contact. I learned this when helping my neighbor with a similar situation. Also, keep records of ANY expenses you pay for your grandson - school supplies, clothes, activities, even small things add up and show the pattern of you being the primary provider. The more documentation you have, the stronger your case will be.

As someone new to this community, I just wanted to say how incredibly helpful this entire thread has been! I'm in a very similar situation - I've had custody of my 8-year-old nephew for the past 4 years after his parents lost their rights due to substance abuse issues. Reading through Sofia's journey and everyone's advice has given me so much hope and direction for planning our future when I retire in a few years. The practical tips about documentation, the health insurance angle, and especially learning about the Statement of Non-Support form are game-changers. It's reassuring to know that SSA does recognize these family situations where grandparents and other relatives step up to raise children. Thank you all for sharing your experiences so openly - it makes navigating this complex system feel much less overwhelming for those of us just starting to research our options.

Just wondering... have u checked what ur survivors benefit would be if ur ex passes away? That's different from the ex-spouse benefit while he's alive. If he dies, u can get his FULL benefit amount (what he would get at his FRA) if that's more than your own. My mom got my dad's full benefit after he passed even though they were divorced.

One thing that might help you decide on timing is to create a break-even analysis. If you take $1,400/month at 62 versus waiting for $2,000/month at 67, you'd collect $84K over those 5 years ($1,400 x 60 months). After age 67, you'd need about 11.5 years (until age 78.5) to make up that difference with the higher monthly payments. Given average life expectancy and your health concerns, this math might actually favor taking benefits earlier in your case. You could also consider working part-time after 62 if possible - you can earn up to about $22K annually without affecting your SS benefits. Just make sure to factor in Medicare costs starting at 65 if you retire before then.