Can I switch from monthly to yearly SS earnings limit after reaching FRA in 2025?

You're dealing with what's called the "grace year" provision in the year you reach FRA. Here's how it works: In the months of 2025 BEFORE you reach your FRA in September, you're subject to a higher annual limit ($62,160 for 2025) and they only deduct $1 for every $3 you earn above that limit (instead of the usual $1 for $2 when you're completely under FRA). The key thing to understand is that once you hit your FRA in September, the earnings test disappears completely! You can earn unlimited income with no reduction to benefits. So yes, you can use the more generous annual limit for 2025 rather than tracking monthly. This is definitely more flexible than the monthly limit you were using in 2024.

My brother went through this exact thing last year. The annoying part is the SSA doesn't explain this very clearly on their website!!! For the months BEFORE your FRA date, you still have an earnings limit but it's higher than normal and they penalize you less for going over. But the BEST part is once you hit your FRA date in September, you can make a MILLION dollars if you want and they won't touch your SS check lol

The previous comments are mostly correct, but let me clarify a few important details: 1. In 2025 (the year you reach FRA), the special higher earnings limit is $62,160, but this only applies to earnings in the months BEFORE your FRA month. 2. Only earnings in January through August 2025 count toward this limit (since September is your FRA month). 3. If you exceed $62,160 in those first 8 months, SSA will withhold $1 in benefits for every $3 over the limit. 4. Starting with your FRA month (September 2025), there is NO earnings limit at all. 5. And yes, you can now use the annual test rather than the monthly test, which gives you more flexibility. The monthly test is only used in the first calendar year of retirement. Since you started benefits in 2024, you had to use the monthly test then. But in 2025, you can use the annual test.

just be careful tho! my aunt thought she could earn more but SSA took back money from her checks later in the year. sometimes they dont tell u til after u already spent the $$. but maybe the rules were different for her situation idk

The SSA earnings test is one of the most misunderstood parts of Social Security! You've gotten good advice here. I'll add that you should keep track of your 2025 earnings with pay stubs or other documentation. SSA gets earnings reports from employers, but sometimes there are discrepancies that can cause problems later. It's also worth noting that any benefits withheld due to excess earnings aren't truly "lost" - once you reach FRA, SSA will recalculate and increase your monthly benefit to account for months when benefits were withheld. And as others mentioned, starting in your FRA month (September 2025), you can earn unlimited income with no impact on benefits!

UGGGGH the earnings test is THE WORST part of Social Security!!! I spent HOURS on hold trying to get straight answers from SSA about this last year. They kept giving me different information every time I called. One rep told me I could earn whatever I wanted, another said I was limited to $1,830/month (this was 2023). The whole system is RIDICULOUS!!! I finally got through to someone who actually knew what they were talking about after like my 5th call. The wait times are INSANE - I was on hold for over 3 hours once and then they just hung up on me!!!

lol this is why i tell everyone to just wait till FRA to claim ss if they're still working!!! too many headaches with the earnings test. but since you already started early, just watch out for that $62k limit before september. what kind of work do you do at the hospital?

One more important thing to note: When reporting earnings to SSA for the earnings test, they care about when the income is earned, not when it's paid. So if you work extra hours in August 2025 (before your FRA) but don't receive the paycheck until September 2025 (your FRA month), those earnings still count toward your pre-FRA limit of $62,160 because they were earned before your FRA month. This distinction between when money is earned versus when it's paid can create confusion. SSA looks at when the work was performed, not the payment date.

Since you started your benefits early at 62 rather than waiting until your FRA, you're receiving a permanently reduced benefit (probably around 70-75% of your full benefit amount). While this isn't related to your earnings limit question, it's worth knowing that any benefits withheld due to exceeding earnings limits don't count toward recovering that reduction. The early claiming reduction is separate from earnings test withholding. When you reach FRA, SSA will adjust your benefit to give you credit for months benefits were completely withheld due to work, but the early claiming reduction remains for life.