Can I draw Social Security at 62 with $50K annual income from structured settlement?

The structured settlement payments won't count against the Social Security earnings test. Only actual wages from employment or net earnings from self-employment count toward the annual earnings limit. So you could start your retirement benefits at 62 without any reduction due to the settlement income. However, you'll still face the permanent reduction for claiming early - about 30% less than your full retirement age benefit. Given your health issues, it might make sense to apply now, but remember your benefit will be permanently reduced compared to waiting until your full retirement age.

I went through something similar last year. The settlement payments ARE NOT earned income for the SS earnings test - my brother is an accountant and confirmed this for me. BUT make sure you're reporting the income correctly on taxes so it doesn't get misclassified. The big question is whether your own SS benefit will be enough to live on after the settlement ends. At 62 it'll be reduced by around 30% permanently.

im on ssdi and had a insurance settlement and it didnt effect my benefits at all. but thats disability not retirement, maybe diffrent rules?? good luck getting thru to ssa on phone i always get disconnected!!

Social Security retirement's earnings test only applies to wages and self-employment income. Your structured settlement payments aren't earned income, so they won't trigger benefit reductions under the earnings test. However, you should carefully consider whether filing at 62 makes financial sense for your situation: 1) Filing at 62 means a permanent ~30% reduction to your monthly benefit 2) Filing at your Full Retirement Age (67) would give you 100% of your benefit amount 3) Each year you delay between 62-70 increases your benefit by approximately 7-8% Also consider reapplying for SSDI. The medical criteria may have changed since your last application, and your combination of conditions might now qualify, especially with limited recent work history. A successful SSDI application would give you your full benefit amount regardless of age.

Have you tried using Claimyr to reach SSA? I was in the same boat - anxiety about calling, always remembering after hours, etc. I used claimyr.com and they got me connected to an actual SSA agent in under 20 minutes! They have a video showing how it works: https://youtu.be/Z-BRbJw3puU - way better than trying to call directly. The agent I spoke with cleared up my questions about my retirement benefits and some inheritance money I was receiving. Definitely worth using to get official answers about your situation.

U NEED TO DO THE MATH!!!! at 62 u get 70% of ur FRA benefit FOREVER! thats a HUGE cut! but if ur health is bad maybe take it now?? how much would ur monthly SS check be? will it be enough when settlement $$ runs out??

Since your structured settlement doesn't count as earnings for the earnings test, your decision comes down to these factors: 1. Health status and life expectancy - If you have serious health concerns and shorter life expectancy, claiming early often makes mathematical sense 2. Break-even point - The break-even age where waiting to file becomes financially advantageous is typically around 80-82 years old 3. Other income sources - How critical is the SS income now versus after your settlement ends? 4. SSDI option - Given your health issues, you could reapply for SSDI with updated medical documentation and potentially receive your full benefit amount I'd recommend getting your precise benefit amounts from your mySocialSecurity account and calculating monthly income scenarios for different filing ages (62, 67, 70) to see what works best for your situation.

By the way, if you haven't done so already, create a mySocialSecurity account online. You can see your estimated benefit amounts at different ages without having to call anyone. The site also shows your earnings history which is worth checking for accuracy since that determines your benefit amount. My sister found errors in hers that would have reduced her benefit if not corrected.

One more consideration: if you file for retirement now but later get approved for SSDI before reaching Full Retirement Age, you could switch to the higher SSDI benefit. This gives you income security now while preserving the option for a higher benefit if your disability claim succeeds. Given your medical conditions and limited work history since 2019, a new SSDI application might be worthwhile, especially with proper medical documentation.

Just wanted to add my experience - I was in a similar situation with a personal injury settlement and was worried about how it would affect my Social Security. The SSA representative I spoke with confirmed that settlement payments are NOT considered earned income for the earnings test, so you can collect retirement benefits without reduction due to that income. However, I'd strongly encourage you to consider the SSDI route that others mentioned. With your combination of physical and mental health conditions plus limited work history since 2019, you might have a much stronger case now than when you first applied. SSDI would give you your full benefit amount regardless of age, and if approved, you'd also get Medicare after 24 months. The worst they can do is deny you again, but the medical landscape and your documented work limitations have likely changed since your last application. Good luck with whatever path you choose!