so confused lol. why would SSA let us do this? seems like theyd have to pay out more money this way

This is such valuable information! I had no idea this option existed for divorced surviving spouses. I'm 58 and my ex-husband passed away two years ago after we were married for 12 years. I've been dreading the thought of claiming early and getting reduced benefits, but it sounds like I could potentially claim survivor benefits at 60 and then switch to my own higher benefit at 70. Does anyone know if there are any earnings restrictions while collecting survivor benefits? I'm still working full-time and won't be ready to fully retire for several more years.

Thanks everyone for the helpful responses! To summarize what I've learned: 1. Only the payments I physically receive in 2024 count for 2024 taxes 2. The December payment that arrives in January 2025 will count for 2025 taxes 3. I should wait for my SSA-1099 form in late January/early February for the official numbers 4. The 1099 will show the gross amount before any Medicare deductions 5. I might want to consider tax withholding from my SS payments going forward This helps tremendously with my year-end planning!

You've got a great summary there! Just one additional tip since you mentioned year-end planning - if you have other retirement account withdrawals planned for 2024 (like from a 401k or traditional IRA), you might want to calculate whether those combined with your Social Security benefits will push you into a higher tax bracket or increase the taxable portion of your SS benefits. Sometimes it's worth spreading those withdrawals across tax years to minimize the overall tax impact. Good luck with your planning!

Having read through all these excellent responses, I want to add one more consideration that could be crucial for your situation. Since you're getting $160k over 5 years, you'll want to be very careful about the "substantial services" rule that applies to installment sales of businesses. If the SSA determines that you're providing substantial services to earn those installment payments (rather than just receiving payment for assets already sold), they can treat the entire payment stream as self-employment income subject to SE tax and earnings limits - even if the initial sale was properly structured as capital gains. The key is ensuring your installment agreement clearly states that payments are for assets already transferred, not for future services. Any ongoing relationship should be minimal and well-documented as "asset transfer completion" rather than business services. Given the complexity everyone has outlined here, I'd strongly recommend getting a determination letter from SSA BEFORE finalizing your sale. You can submit a detailed description of your proposed transaction and ask for a written determination of how they'll treat it. This takes time (several months typically) but could save you from nasty surprises later. Also consider that if you delay SS until 67 and live off the business proceeds, you'll not only avoid the earnings test but also qualify for delayed retirement credits. At $32k annually from the sale, this might actually maximize your lifetime benefits significantly.

I've been reading through all this fantastic advice, and I wanted to add something from my experience helping my dad with a similar situation last year. One thing that really caught my attention is the discussion about timing and delayed retirement credits. Given that you have $160k coming in over 5 years ($32k annually), you might actually be in an ideal position to optimize your lifetime Social Security benefits. Here's a strategy worth considering: 1. Delay Social Security until age 70 (not just 67) to maximize delayed retirement credits - that's an 8% increase for each year from 67-70, totaling 24% higher monthly benefits for life 2. Use the business sale proceeds to cover living expenses from 63-70 3. This approach eliminates ALL earnings test concerns and could result in significantly higher lifetime benefits The math works out especially well if you have longevity in your family. At $32k per year from the sale, you'd have enough to live on (potentially supplemented with some part-time work that keeps you under earnings limits if needed). I'd also strongly echo the advice about getting that SSA determination letter before finalizing anything. My dad's attorney was able to get one, and while it took about 4 months, it prevented any nasty surprises down the road. Don't let the buyer pressure you into a timeline that doesn't work for YOUR retirement optimization!

I'm in the exact same situation and this thread has been incredibly helpful! I submitted my retirement application 6 weeks ago and have been getting increasingly worried about the "pending" status with no updates. Like many others here, I also worked for a local government agency (the county assessor's office) for about 4 years in my early career, so now I understand why my application is probably taking longer. The SSA website's 4-6 week estimate is completely misleading and causing unnecessary stress for people trying to plan their retirements. I've been hesitant to try calling because of all the horror stories about hold times, but after reading about the 7am strategy and the Claimyr service, I'm going to give both a try this week. It's frustrating that we have to jump through so many hoops just to get basic information about our own applications, but at least knowing these delays are unfortunately normal helps reduce some of the anxiety. Thanks to everyone who shared their experiences and tips - this community support makes the waiting much more bearable!

I'm just starting to research the Social Security retirement application process and stumbled upon this incredibly informative discussion! As someone who hasn't filed yet but is planning to retire in about 8 months, reading through all these real experiences has been both enlightening and concerning. It's clear that the SSA website's 4-6 week processing estimate is completely outdated and misleading. I worked for a state agency for about 5 years early in my career, so based on what everyone's sharing here about government employment causing delays, I'm now planning to submit my application at least 3-4 months before I actually need benefits to start. The tips about calling at 7am, checking MySocialSecurity messages regularly, and having backup options like Claimyr or contacting congressional representatives are incredibly valuable. Thank you to everyone who's shared their experiences and advice - this real-world knowledge is so much more helpful than the official SSA guidance!

I'm really grateful to have found this thread as someone who's been struggling with a similar decision. I filed for SSDI about 20 months ago and just got my second denial, so I'm looking at the hearing process now. I'll be 62 in about 8 months, and like Connor, I've been really stressed about what to do if my case is still pending by then. Reading everyone's experiences here has been incredibly eye-opening, especially learning that the early retirement "bridge" strategy is actually a recognized approach that SSA has procedures for. I had no idea that if disability is later approved, they convert you to the higher rate and remove the early retirement reduction - that completely changes the risk calculation! The advice about getting a disability attorney even at the appeals stage seems crucial. I've been trying to handle this on my own, but after 20 months of denials and reading about the 65% approval rate at hearings with proper representation, I think it's time to get professional help. One question for those who've been through this: how do you handle the uncertainty and stress of not knowing which way to plan? Some days I feel confident about my disability case, other days I wonder if I should just plan on taking early retirement. The emotional toll of this limbo is really getting to me, and I'm worried about making a decision based on fear rather than facts. Thanks to everyone for sharing such detailed and honest experiences. This community support means more than you know!

I went through this exact same dilemma 3 years ago and understand how overwhelming it feels! I was 61, had been fighting SSDI for over 2 years with two denials, and was facing the same decision about early retirement. Here's what I learned that might help you: I ended up taking early retirement at 62 as a financial bridge while hiring a disability attorney to handle my appeal. It was honestly the best decision I could have made. The attorney found gaps in my medical documentation that I never would have caught on my own. My SSDI was approved about 10 months after I started receiving early retirement, and SSA converted everything automatically to the higher disability rate. I got backpay from my established onset date (minus what I'd already received in retirement) and my monthly amount jumped up significantly. The key things that helped me make the decision: - Realizing I couldn't survive financially for potentially another 1-2 years waiting - Understanding that taking early retirement didn't hurt my disability case at all - Learning that the early retirement reduction disappears completely if SSDI is approved - Getting professional legal help made a huge difference in my case outcome Don't let anyone make you feel guilty about needing financial stability while you fight for what you're entitled to. Sometimes you have to be practical about survival. The most important thing is to keep pursuing your disability case regardless of what you decide about early retirement. Your mental and physical health during this process matter too. The stress of being broke for years doesn't help your disability condition. Good luck with whatever you decide!