I had this EXACT situation last year - retired teacher with SS from other jobs. You've lost 40% of your benefit (keeping 60%). The formula is complex, but here's what happens: 1. Normal SS formula uses 90% of first chunk of your earnings in calculation 2. WEP reduces that 90% to 40% (a 50% reduction) 3. This doesn't mean 50% of your TOTAL benefit, just 50% of that first calculation tier 4. Result is usually a 30-40% reduction of total benefit With 18 qualified years, you should be getting a slight break on the full WEP penalty. Did you verify all 18 years meet the substantial earnings threshold? Each year has a different dollar amount.

I'm a newcomer here but dealing with a similar WEP situation. Reading through all these explanations really helps clarify the confusion! I had the same misunderstanding about the percentages - thinking WEP took a straight 40-60% of my total benefit rather than modifying the calculation formula. One thing I'd add for anyone in this situation: if you're still able to work part-time in Social Security-covered employment, it might be worth trying to accumulate more "substantial earnings" years. Even getting from 16 years to 20 years can make a meaningful difference in your monthly benefit going forward. Also, make sure to request an official WEP calculation worksheet from SSA if you haven't already. It breaks down exactly how they arrived at your reduction amount and can help you verify everything is calculated correctly. I found an error in mine that resulted in an extra $87/month once corrected. The whole system is needlessly complex, but at least understanding the math helps reduce some of the frustration!

also idk if this helps but my mom told me grandma eventually got on a subsidized housing list and that helped her a lot with expenses. the wait was like 2 years tho so maybe apply now even if ur not sure?

I'm really sorry you're going through this - the 10-year marriage rule is unfortunately one of the strictest requirements in Social Security law with no exceptions or hardship provisions. Your ex-husband deliberately timing the divorce is sadly more common than people realize. However, I'd strongly encourage you to pursue the worker misclassification issue aggressively. If you were truly functioning as an employee (set schedule, using their equipment, following their procedures), you may have been illegally misclassified. While Form SS-8 typically only allows corrections going back 3 years, there can be exceptions in cases of employer fraud or willful misclassification. You might also want to consult with an employment attorney who handles wage theft cases - some take these on contingency if there's a strong case against your former employer. They could potentially help you recover not just the Social Security credits, but also the employer portion of payroll taxes that should have been paid on your behalf. Additionally, contact your state's Department of Labor - they often have programs to help workers who've been misclassified recover what they're owed. This could potentially impact more than just the recent 3 years if there's evidence of systematic misclassification.

careful with the earnings limit!!!!! my brother went over by like $3000 and they took back a bunch of his benefits. big mess to fix

Just wanted to share my personal experience since I was in a very similar situation! I started collecting at 62 and continued working part-time for about 4 years. The FICA taxes definitely kept coming out of every paycheck, which felt frustrating at first, but it did pay off in the end. My benefit increased three times during those years - once by $31/month, another time by $18/month, and the final increase was $42/month. The increases happened automatically each January, and I could see the changes reflected in my SSA.gov account under the benefit payment history. One tip: keep good records of your earnings each year so you can track whether the recalculations are happening correctly. I also found it helpful to periodically check my earnings record online to make sure my employer was reporting my wages properly to SSA. The earnings limit was definitely something to watch carefully - I had to turn down some extra shifts a couple times to stay under the threshold, but overall continuing to work was worth it both financially and personally!

Regarding the inflation question - Social Security benefits receive annual Cost of Living Adjustments (COLAs) whether you've claimed benefits yet or not. Your calculated benefit at FRA includes all COLAs that occurred since you turned 62, even if you haven't started receiving benefits yet. So inflation doesn't reduce the advantage of waiting. The break-even analysis (when the total benefits received by waiting equals what you'd get by filing early) typically occurs in your early 80s. If your family has longevity as you mentioned, waiting is statistically advantageous.

I'm glad to see so many helpful responses here! Just wanted to add one practical tip - you can create a my Social Security account at ssa.gov to see your estimated benefits at different claiming ages. It will show you exactly how much you'd get at 63 vs your FRA vs age 70. This can help you make a more informed decision based on your actual numbers rather than general percentages. The account also shows your complete earnings history so you can verify that your 37 years of work are properly recorded. Good luck with your decision!

Reading through this thread has been eye-opening! I'm 62 and was planning to file at my FRA, but seeing all the complexity around the earnings test makes me grateful I have a few more years to plan this out properly. One resource that might help everyone here is the Social Security Administration's online Retirement Estimator tool. You can plug in different scenarios (claiming at 65 vs FRA vs 70) and see projected monthly benefits. While it doesn't factor in the earnings test complexities, it gives you a baseline for running those break-even calculations @Connor O'Reilly mentioned. @Ethan Brown, given all the great advice here, have you been able to narrow down which direction you're leaning? The reduced consulting work option seems like it could be a real winner if the numbers work out. And definitely agree with getting professional help to run the calculations - this is way too important (and complicated) to wing it!

This entire discussion has been incredibly educational! I'm turning 64 next year and was completely unaware of how complex the earnings test could be. The idea of having entire monthly checks withheld upfront rather than just a proportional reduction each month was particularly shocking - that's definitely not how I imagined it working. @Ethan Brown, I hope you don't mind me jumping in, but I wanted to add one consideration that hasn't been mentioned yet: the impact on Medicare Part B premiums. If you're planning to enroll in Medicare at 65, your Part B premiums are based on your income from two years prior, but future income changes could affect IRMAA surcharges down the road. Since you're earning $36k from consulting, this probably won't push you into higher premium brackets, but it's worth factoring into your overall financial planning. The suggestion about reducing your consulting work to stay under the $24,300 limit really does seem like it could be the sweet spot. Even if you had to turn down some projects, the combination of partial consulting income plus full Social Security benefits might exceed what you'd get from full consulting with withheld SS payments. Has anyone here actually tried to precisely manage their income to stay just under the earnings limit? I'm curious how difficult that is in practice, especially for consultants whose project income can be unpredictable.