Confusion about SS early retirement at 66/6mo - Can my $1800 benefit count toward earnings limit while working part-time?

Your Social Security benefit does NOT count toward the earnings limit. The earnings test only applies to wages from work or net earnings from self-employment. So your $2,450 benefit is completely separate from the $1,950 monthly earnings limit. You can definitely keep your weekend job earning $650-$800/month since that's below the $1,950 monthly limit. You won't lose any benefits as long as you stay under that threshold. And you're right that taking it 4 months early for only a $55/month reduction might make sense in your situation. Just be aware that the reduction is permanent, but if you're planning to live on that income and the small weekend job, it sounds like a reasonable plan.

The earnings test only counts money you EARN not what SS pays you! I made the same mistake when I applied last year lol. Your benefit payment is NOT counted as earnings. Breathe easy and enjoy your retirement!

I think you're making a smart choice to take it a few months early. I waited until my FRA (67) and now I'm kicking myself because I missed out on thousands of dollars I could have had earlier. The break-even point where waiting pays off is usually in your late 70s or 80s. If you need the money now, take it! Just make sure you're counting ALL your work income against that limit. It includes bonuses, vacation pay, commissions, etc. I had a friend who got a surprise year-end bonus that pushed her over the limit and they reduced her benefits the next year.

One thing nobody's mentioned - be really careful about that earnings limit if you're planning to work right up until retirement. If you earn too much in the months BEFORE you start collecting, it could affect your benefits too. SSA looks at your annual earnings and may prorate them across the year. I'd recommend calling Social Security directly to verify how your specific situation will work. You might be on hold forever though - I had to call 8 times before I got through last month.

wait i'm confused do you have to pay back the SS benefits if you earn too much from your job??? nobody told me this and i'm starting benefits next month but still working part time!!!

I just went through this exact scenario last year! I retired 5 months before my FRA and kept my part-time consulting gig. Like others said, the SS payment doesn't count toward the earnings test at all. Only what you earn from actual work counts. BUT - and this is important - SSA looks at your annual earnings for the year. So even though the monthly limit is $1,950, they actually look at the annual limit of $23,400. If you earn more than that in 2025 before hitting your FRA, they'll withhold $1 for every $2 you earn above the limit. I'd suggest creating a my Social Security account online if you haven't already. It makes tracking everything much easier.

DONT FORGET ABOUT TAXES!!!!! Even if you stay under the earnings limit, you might still have to pay taxes on your Social Security benefits if your combined income is high enough. Up to 85% of your benefits can be taxable depending on your total income. Nobody warned me about this and I got hit with a surprise tax bill my first year on SS. 😡

When I retired last year the SSA rep told me something that helped me understand this: think of the earnings limit as ONLY counting money you actively work for. Your pension, investments, rental income, and most importantly your SS benefits do NOT count toward the earnings limit. Only wages from a job or self-employment count.