Best time of year to start Social Security at 63? Tax implications for early retirement

In my experience, there's no magical "best month" to start SS benefits, but there are some practical considerations. The most important thing is understanding the earnings test if you're earning any income. If you'll earn over $22,320 in 2025, they'll withhold $1 for every $2 above that limit until you reach FRA. The annual limit is applied proportionally for partial years. Also, tax-wise, up to 85% of your SS benefits can be taxable depending on your combined income. If you'll have substantial other income in 2025 (pension, 401k, etc.), starting in January means a full year of SS benefits adding to your taxable income. Starting in December means minimal impact on 2025 taxes. Finally, remember your first payment comes the month AFTER you're eligible. So if you apply for January benefits, your first payment arrives in February.

Doesnt matter what time of year!!!! The amount u get depends on YOUR EARNINGS RECORD and YOUR AGE when u file... thats it! The SSA doesnt care if its January or July lol

There are a few timing considerations beyond just the monthly reduction for early claiming: 1. **First payment timing**: Benefits are paid one month after the month they're due. If you apply now, specify when you want benefits to start. 2. **Tax planning**: Since you're already retired, consider your overall taxable income for 2025. If starting SS in January puts you in a higher tax bracket, delaying until later in the year could be beneficial. 3. **Medicare coordination**: If you're signing up for Medicare soon (at 65), sometimes it's administratively simpler to coordinate the timing. 4. **Processing times**: Current processing times for retirement applications are running about 4-6 weeks regardless of time of year. There's no consistently 'faster' season. 5. **Year-end tax documents**: Starting near year-end means your first SS tax form (SSA-1099) will reflect a smaller amount, simplifying your first year of tax planning. One other consideration: retroactive benefits. If you apply now, you can request up to 6 months of retroactive benefits (though not before age 62). This gives you a lump sum but permanently locks in the earlier, lower monthly amount.

I started mine in April last year at 62 and it was fine. Took about 5 weeks to get approved and then got my first payment in May. Don't overthink it too much - just apply when you're ready. Good luck!

I'm a retired tax accountant, and I always advised my clients to think about their TOTAL income picture when deciding when to start SS during the year. Since you just retired in January, I'm assuming you had some employment income already this year. That plus pension + SS could push you into a higher tax bracket. For many people, starting in January makes the most sense because you get a full year of benefits. But for someone who just retired and already has some earned income on the books for 2025, starting later in the year (September-November) could make your first year tax situation more manageable. Also, be aware that SS benefits are paid in arrears - you get February's payment in March, etc. So even if you apply today and request benefits start immediately, your first deposit won't come for at least a month (likely longer with processing time).

Is anyone else COMPLETELY FRUSTRATED with trying to reach SSA to ask these kinds of questions??? I've been trying to call for TWO WEEKS about my application and either get disconnected or told the wait time is over 2 hours!!! How are we supposed to make these important decisions when you can't even talk to someone who knows the rules?! The website is so confusing and the calculators don't address timing questions like this.

One other timing factor to consider is that the COLA (cost of living adjustment) for next year will be announced in October and takes effect with January payments. If you start benefits later in the year, you'll still get the full COLA percentage increase in January 2026. So if the COLA is, let's say, 2.5% for 2026, and you started benefits in November 2025, you'd still get that full percentage increase in January 2026 even though you've only been receiving benefits for 2 months. It's not a huge factor, but something to consider as part of your overall timing strategy.

my sister started her benifits in december and regretted it bcuz of tax stuff the next year. something about not having withholding set up properly. make sure u fill out that voluntary withholding form thing!!!

As someone who just went through this decision process last year, I'd echo what others have said about the tax planning being the most important factor. I was in a similar situation - retired at 63 with a pension and some investment income. I ended up starting my SS benefits in September, and it worked out well tax-wise. Here's what I learned: **Processing tip**: Apply about 3 months before you want benefits to start. I applied in June for September benefits and everything went smoothly. **Tax withholding**: Definitely submit Form W-4V with your application! I chose 12% withholding and it saved me from a big tax surprise. You can always adjust it later if needed. **Quarterly estimated taxes**: Since you have pension income, you might already be making quarterly payments. Factor your SS income into those calculations - your tax preparer can help estimate the impact. **One thing I wish I'd known**: Your Medicare premiums (when you turn 65) will be deducted from your SS benefits automatically. So if you're doing tax planning now, remember that your actual SS deposit will be reduced by those premiums starting at 65. The timing flexibility gives you some control over your tax situation, which is one of the few advantages of claiming early. Sounds like you're thinking about it the right way!