In addition to what others have explained, it's worth noting that the benefit estimate on your statement is calculated using your highest 35 years of earnings (adjusted for inflation). So depending on your current work situation, your actual benefit might be higher if you're still working and replacing lower-earning years in your calculation. This is separate from the COLA issue, but it's another reason why the estimate is just that - an estimate. For the most accurate picture, I'd recommend creating an account on ssa.gov if you haven't already, where you can see your complete earnings history and use their more detailed calculators.

I printed mine in December and then again last week. Nothing changed at all. My friend who is already collecting said she saw her COLA increase in January. So I think we're all right that they don't update the statements for people not collecting yet. Kind of makes planning harder but what else is new with government stuff lol

The months before u reach FRA in the same year DO COUNT toward the yearly earnings limit! but you aren't collecting benefits in those months so theres no penalty. Thats what confuses people. The earnings test only applies to months when ur actually getting a check AND under FRA. U won't get payments until June so Jan-May earnings aren't relevant.

To clarify everything once and for all: 1) The 2025 earnings limit for months BEFORE reaching FRA is $59,520 2) You'll earn $66,000 before reaching FRA in June 3) BUT - this only matters if you're receiving benefits during those months 4) Since you're starting benefits IN JUNE (your FRA month), the earnings test DOES NOT APPLY 5) You will receive your full benefit amount with no reduction The SSA website states: "In the year you reach full retirement age, we deduct $1 in benefits for every $3 you earn above a different limit, but we only count earnings before the month you reach your full retirement age." Since you're not collecting before your FRA month, there's nothing to deduct from.

The indexation method is cool but do u know what's way more important? Making sure all ur earnings are actually ON your record! My dad just found out they were missing 3 yrs of his earnings when he went to claim! Check ur earnings statement every year folks!!

To more directly answer your original question: The indexation factors for 2025 retirement calculations use the ratio of the Average Wage Index (AWI) from the year you turn 60 compared to the AWI for each earlier year you worked. For example, if you're turning 62 in 2025 (born in 1963), your indexation year would be 2023 (the year you turned 60). So if the AWI for 2023 was $65,839.55, and the AWI for 1990 was $21,027.98, the indexation factor for your 1990 earnings would be approximately 3.13 (65,839.55 ÷ 21,027.98). Your actual earnings from 1990 would be multiplied by this factor to determine their indexed value. The SSA then takes your highest 35 years of indexed earnings to calculate your Average Indexed Monthly Earnings (AIME), which becomes the basis for your Primary Insurance Amount (PIA).

Update: I called the SSA this morning and finally got through to someone. The new agent confirmed that I CANNOT do the restricted application strategy because I was born after January 1, 1954. Apparently the claims specialist I met with gave me incorrect information! She explained that when I file, I'll simply get the higher of either my own benefit or my ex-spouse benefit (about 50% of his). If I wait until 70, my own benefit will grow by 8% per year, which will definitely be higher than my ex-spouse benefit at that point. Thanks everyone for your help - you saved me from making a big mistake based on incorrect information!

This whole thread is making me nervous... I'm turning FRA next month and planned to do exactly what the original poster described (take ex-spouse benefits now, switch to mine at 70). Now I'm worried! I was born in 1953 though, so maybe I'm still ok? Does anyone know for sure?

Both of your questions are really common! For state taxes, each state handles retirement income differently. While Social Security only handles federal withholding, many retirees set up quarterly estimated payments with their state. Some states don't tax Social Security benefits at all though - which state are you in? That makes a big difference. On Medicare - yes, you'll need documentation, but you should be fine. This situation (staying on a spouse's active employer plan) is specifically protected under Medicare rules. You qualify for a Special Enrollment Period. Just make sure you apply within 8 months of when that coverage ends. Honestly, I'd recommend making an appointment at your local Social Security office for these questions. These issues are complex enough that speaking with someone directly is your best bet.

does anybody else think its RIDICULOUS that ss wont withhold state taxes?? they already have all our information and do federal withholding. just one more thing to complicate retirement!!

my aunt just turned 62 and she got a spousal benefit that was like $200 more than her own benefit would have been. but she worked part time most of her life so her own benefit was pretty small.

Thank you everyone for all the helpful responses! I've learned a lot about how the spousal benefit works. I think I'm going to go ahead and file now at 62 since we could use the extra income, even though it's reduced. One last question - do I need to bring anything special to prove my marriage when I apply?

I worked for SSA for 32 years before retiring. This multiple ex-spouse scenario comes up fairly often. THE KEY THING TO REMEMBER is that all eligible parties receive the FULL benefit amount they're entitled to - no splitting or sharing. But each ex-spouse needs to APPLY for these benefits. We don't have a system that automatically notifies ex-spouses when a former spouse dies. Also important: if the deceased worker had dependent children under 16 or disabled, they may qualify for benefits too, which is separate from any spousal benefits.

This thread has been so educational! I've been wondering about a similar situation with my parents. My mother was my father's third wife (married 18 years before divorcing). He had two previous marriages of 12+ years each. He's 72 now with health issues, and I've been trying to understand what benefits my mother might be eligible for if something happens to him. Sounds like she would qualify for full survivor benefits despite the divorces and the existence of other ex-wives. The Social Security system is much more complex than most people realize!

One more thing I forgot to mention - if you DO get hit with an overpayment because of the earnings test, you can request a "waiver of overpayment recovery" if it wasn't your fault and paying it back would cause financial hardship. I had to do this when they came after me for $3,800. Form SSA-632 is what you need.

Just to clarify one more thing - the monthly earnings limit only applies to the first year you receive benefits. In 2026 and beyond, they'll use the annual test until you reach your full retirement age of 67. Also, remember that the earnings limit only applies to wages and self-employment income. It doesn't count pensions, investments, interest, annuities, capital gains or other government benefits. And once you hit your FRA, there's no earnings limit at all.

Make sure your son checks if he's eligible for any survivor benefits from your ex's record. Depending on your son's age and situation, there might be some benefits available to him that could help offset some costs. Also, if you were married for at least 10 years before divorcing, you might be eligible for ex-spouse survivor benefits depending on your current marital status and age.

just be careful about any checks that come in after he died! my dad got a payment AFTER he died and we spent it, then SS wanted it back and it was a huge mess

tell ur daughter congrats on saving!! my kid always spends everything the minute she gets it lol

WAIT!!!! Does your daughter file taxes?? My nephew lost his benefits because he didnt report his income properly on his taxes even though it was under the limit!! Make sure all paperwork is done right!!!!!