As someone who just went through this decision process last year, I can confirm what others have said - 401k distributions absolutely do NOT count toward the earnings limit. I was worried about the same thing when I started claiming at 65 while still doing some part-time work. One thing I'd add is to consider the timing of when you start your consulting work. Since you're filing in April 2025, SSA will use the monthly earnings test for the remainder of that year (rather than the annual test). This means you can earn up to $1,950 per month ($23,400/12) from April through December without any penalty. This might actually work in your favor if you're planning to ease into consulting gradually. Also, keep in mind that your reduced benefit at 66 will increase slightly each month until you reach full retirement age due to delayed retirement credits. It's not a huge amount, but every little bit helps! Good luck with your transition - it sounds like you've got a solid plan in place.

As someone who has been navigating the Social Security system for a few years now, I wanted to add a couple of additional points that might be helpful for your situation. First, regarding your 401k distributions - everyone is absolutely correct that these don't count toward the earnings limit. However, do keep in mind that if you're taking distributions from a traditional 401k (rather than Roth), these will still be taxable income that could affect how much of your Social Security benefits are subject to federal taxes. It won't impact the earnings test, but it's worth factoring into your overall tax planning. Second, since you mentioned you've been at your company for 32 years, make sure to check if your employer offers any kind of phased retirement or emeritus consulting arrangement. Some companies will hire back recent retirees as consultants at favorable rates, and since you already know the business, it could be a great way to ease into your reduced work schedule while maintaining some income continuity. The monthly earnings test that others mentioned for your first partial year is definitely something to take advantage of - it gives you much more flexibility in how you structure your consulting income in 2025. Best of luck with your transition!

My wife is also July 1958 and we just went through this whole thing with planning her retirement. Her FRA is definitely 66+8 months, so March 2025 is right. But remember that Social Security pays a month behind, so her first FULL payment at FRA would be in April 2025 (for March).

Everyone here is focusing just on your FRA date, but have you considered whether waiting until your FRA is actually the best strategy for you? Depending on your health, family longevity, current savings, and whether you're still working, filing before or after FRA might be better. I initially planned to file at my FRA (66+4mo), but after running the numbers, I decided to wait until 70 for the maximum benefit since I'm still working part-time and don't need the income yet. Just something to think about beyond just confirming your correct FRA date.

did u know that if u work for a state that doesnt pay into SS (like some do and some dont) it can really mess up ur benefits? my cousin lost like half his SS because of something called windfall elimination provision. just mentioning in case ur state job is one of those???

I'm just starting to think about my own retirement planning and this thread has been incredibly eye-opening! I had no idea about IRMAA or how complex the timing could be with Social Security and Medicare. @Chloe Mitchell - it sounds like you're being really smart to pause and recalculate everything before moving forward. I'm curious though - when you do withdraw your application with form SSA-521, do you have to wait any specific amount of time before you can reapply? Or can you turn around and file a new application right away for a different start date? Also, for everyone who's mentioned financial advisors - are there any specific certifications or specializations I should look for when finding someone who really understands Social Security and government pensions? I work for a local municipality and want to make sure I don't make the same mistakes when my time comes. Thanks to everyone for sharing their experiences - this is exactly the kind of real-world advice you can't get from the official websites!

@original poster - did you ever get this resolved? I'm curious what you decided to do since I'm facing a similar decision next year. My financial advisor actually suggested the same strategy you're considering.

Congratulations on making your decision! It sounds like you did your homework and considered all the important factors. Since you're moving forward with filing at 62, here are a couple of practical tips from someone who went through the process recently: 1. File online if possible - it's much faster than trying to get through on the phone 2. Keep good records of your investment strategy and returns for tax purposes 3. Consider setting up automatic investing for your SS payments so you stay disciplined with the plan One last thing - you mentioned being worried about Medicare premiums earlier. Just FYI, your Social Security benefit amount doesn't directly affect Medicare Part B premiums, but if your investment income pushes your total income above certain thresholds, you could face IRMAA surcharges on Medicare premiums later. Something to keep in mind as you manage those investments! Best of luck with your strategy - hope it works out well for you!