Great question and I'm glad you're planning ahead! As others have confirmed, your pension and 401k/IRA withdrawals won't count toward the earnings test during those two years before your FRA. One additional thing to consider: if you do decide to claim at 65, make sure you understand how the monthly earnings test works. The annual limit everyone mentions gets divided by 12, so if you have any part-time work, you need to stay under about $1,833 per month (based on the ~$22,000 annual limit). They look at it month-by-month in your first year of claiming, not just the annual total. Also, don't forget that once you hit your FRA at 67, any benefits that were withheld due to the earnings test will be gradually added back to increase your monthly payment for life. So even if you did go over the limit occasionally, it's not permanently lost money. With your pension and retirement savings, you seem well-positioned for retirement at 65 if that's what you decide!

As someone who just went through this exact decision process last year, I wanted to share my experience. I was in a very similar situation - eligible for pension at 65, substantial 401k balance, and FRA of 67. After reading through all the great advice here, I ultimately decided to wait until my FRA to claim Social Security. Instead, I'm living off my pension ($1,800/month) plus strategic withdrawals from my 401k. Yes, it means dipping into my retirement accounts earlier, but the permanent 13.3% reduction in SS benefits for claiming at 65 just didn't make financial sense given my family's longevity. One thing that helped me make the decision: I calculated my "break-even" point. For me, if I live past age 78, waiting until FRA will have provided more total lifetime benefits despite getting payments for 2 fewer years. Given that both my parents lived well into their 80s, the math favored waiting. The peace of mind knowing I'll get my full Social Security benefit for life was worth the temporary inconvenience of managing retirement account withdrawals for those two years. Just another perspective to consider as you make this important decision!

Update: I finally got through to SSA this morning! The representative was actually very helpful. She explained that: 1. I need to report my estimated earnings for the year 2. They'll calculate how much I'll exceed the annual limit 3. They'll withhold some of my monthly benefits in 2025 to recover the excess amount She also confirmed what someone mentioned here - that when I reach my full retirement age, my benefit will be recalculated to credit me for the months where benefits were withheld. I feel much better knowing what to expect now instead of worrying about a surprise bill. Thanks everyone for your help!

I'm glad you got some clarity from SSA! This thread has been really helpful for understanding the earnings test - I had no idea it was based on annual income rather than monthly. I'm 61 and considering early retirement next year, but I'd also like to do some consulting work. Based on what everyone shared here, it sounds like I need to be really careful about tracking my total annual earnings and maybe even consider having benefits withheld upfront if I know I'll exceed the limit. The fact that withheld benefits actually increase your payment later at FRA is something I definitely didn't know. Thanks to everyone who shared their experiences - this is exactly the kind of real-world advice that's hard to find on the SSA website!

Thanks everyone! This has been incredibly helpful. Just to make sure I've got it straight: 1. For Jan-Aug 2025 (before my FRA month), I'm subject to the higher annual limit (~$60k) 2. From September 2025 onward, no earnings limit applies at all 3. If I somehow exceed the limit in those first 8 months, they'll withhold some benefits but eventually adjust my payment amount at FRA Since I'll probably earn around $65-70k by August, I might be slightly over the limit. I'll have to decide if I want to try to stay under it or just accept a small reduction for a month or two. Really appreciate all the insights!

Just want to add one more consideration - make sure your employer knows you're planning to collect Social Security while still working. Some companies have policies about this, and you'll want to coordinate with HR about tax withholdings since you'll have both W-2 income and Social Security benefits. The tax situation can get a bit complex when you have both income sources, especially if your combined income pushes you into the range where SS benefits become taxable. Might be worth running the numbers with your financial advisor to see if you need to adjust your withholdings to avoid a surprise tax bill next April!

I work as a benefits counselor and see this type of error frequently. The key thing to understand is that your sister was likely receiving what's called "dually entitled" benefits - her own retirement benefit plus a divorced spouse supplement to bring her up to 50% of her ex-husband's benefit amount. When he died, she should have transitioned to divorced survivor benefits (up to 100% of his amount), which would normally be HIGHER than what she was getting before. The fact that her payment went DOWN is a major red flag. The overpayment notice for January-June (before his death) suggests their system incorrectly flagged her legitimate divorced spouse benefits as improper survivor benefits. This is a coding error where the system applied the wrong benefit type retroactively. Here's my recommendation: She needs to file Form SSA-561 (Request for Reconsideration) AND Form SSA-632 (Request for Waiver) simultaneously. The waiver can stop collection while the appeal is processed. When she goes to the office, she should specifically ask for a "Technical Expert familiar with dual entitlement cases" and request a complete benefit computation worksheet showing how they calculated both the overpayment and her new benefit amount. Don't let her sign anything agreeing to repay until this is fully reviewed. This sounds like a textbook systems error that should be correctable once the right person looks at her case.

I'm so sorry your sister is dealing with this stressful situation! Based on what you've described, this sounds like a classic system error that unfortunately happens when someone transitions from divorced spouse benefits to divorced survivor benefits. The timing is the biggest clue - an overpayment notice for January-June when he didn't pass away until July makes no sense unless their computer system incorrectly flagged her legitimate divorced spouse benefits as improper survivor benefits retroactively. Here's what I'd recommend she do immediately: 1. **Don't panic or agree to any repayment** until this is fully investigated 2. **File both Form SSA-561 (appeal) and Form SSA-632 (waiver request)** - the waiver can stop collection during the appeal 3. **Request a Technical Expert** who specializes in dual entitlement/survivor benefit cases when she visits the office 4. **Ask for a detailed benefit computation worksheet** showing exactly how they calculated both the overpayment and her new reduced benefit amount The fact that her survivor benefits are LESS than her previous benefits is another major red flag - survivor benefits are typically higher (up to 100% of the deceased's benefit vs 50% for divorced spouse benefits). This is absolutely fixable, but she needs to be persistent and get to someone who truly understands these complex cases. Document everything and don't let them rush her into accepting their initial determination. You're being a wonderful advocate for her!

my cousin told me the SSA website has a calculator for this stuff but i couldn't find it lol

I'm in a similar situation and found this thread really helpful! One thing I wanted to add - when you do contact SSA to confirm your earnings situation, make sure to ask them about how they'll handle your September benefit start date. Since you're retiring in September but your FRA isn't until December, they might need to adjust your first few benefit payments to account for the fact that you're technically still in your "FRA year" until December. Also, regarding the severance package - that usually doesn't count as "earnings" for the Social Security earnings test since it's not compensation for current work. But definitely confirm this when you speak with them, especially if any part of the severance is structured as consulting payments or continuation of salary. The peace of mind from getting official confirmation is totally worth the effort to reach them!