Does starting Social Security in mid-year vs January affect benefits when still working? (FRA vs early retirement question)

Yes, the month you start absolutely matters - especially when you're still working. Here's what you need to understand: 1. The earnings limit for 2025 will be around $22,400 for someone under FRA (the 2024 limit is $21,240, and it increases annually). 2. If you start SS in January but continue working through June, you'll need to report your expected earnings to SSA. If you're going to exceed the annual limit, they'll withhold benefits - $1 for every $2 you earn above the limit. 3. Starting in June rather than January means you'd receive 5 fewer months of reduced benefits, so your monthly amount would be slightly higher (less total reduction). 4. When working past the earnings limit in the same year you claim, SSA applies a monthly earnings test in your first year of benefits. This means you could potentially receive benefits for months you earn under the monthly limit (about $1,870) even if your annual earnings exceed the yearly limit. You should run the numbers both ways. Also remember that any benefits withheld due to excess earnings aren't lost forever - they're returned to you in the form of a higher benefit after you reach FRA.

I went through something similar last year. The monthly earnings test in your first year of benefits is SUPER important in your situation. Basically, no matter how much you earn January-June, if you RETIRE in June, and your monthly earnings fall below the monthly limit for July-December, you can receive full benefits for those months even if you've already exceeded the annual limit in the first half of the year. BUT - and this is crucial - you need to notify SSA when you retire mid-year so they apply this monthly test instead of the annual one. Otherwise, they might just see your total earnings for the year and withhold accordingly. As for the survivor benefits question, good news: Taking reduced benefits on your own record does NOT affect your survivor benefit amount. They're completely separate calculations. When you reach FRA, you'll get the higher of either your reduced benefit or the full survivor benefit.

u probably need to call social security directly, their rules are complicated and most people on forums don't know the actual rules. sometimes they say different things to different people too. good luck

I called the Social Security office about this exact situation last month, and after being on hold for 2+ hours, they disconnected my call. Tried again the next day with the same result. Finally used this service called Claimyr (claimyr.com) that got me connected to an actual SSA agent in about 20 minutes. They have a video showing how it works: https://youtu.be/Z-BRbJw3puU The agent confirmed what others have said - they do apply a monthly earnings test in your first year of benefits. But you MUST tell them when you retire mid-year or they won't know to apply it. Also got confirmation that taking reduced retirement benefits now won't affect survivor benefits at FRA. Definitely worth talking to SSA directly since your situation involves both early retirement and future survivor benefits.

Uggh the earnings limit is so ANNOYING! I started SS at 63 and didn't know about the limit and had to pay back almost $7,000!!! If ur still working just WAIT until FRA to apply!!! Not worth the headache!!

To address the confusion in some of these responses: 1. Yes, there IS a monthly earnings test in the first year of benefits. This is directly from SSA's website and operations manual. 2. The person who had benefits withheld despite retiring mid-year may not have properly notified SSA of their retirement. You must specifically request the monthly earnings test. 3. Regarding the original question about which month to start: Each month you delay before FRA slightly increases your benefit amount (you're taking less of a reduction). But there's also opportunity cost to consider - months of payments you miss by waiting. 4. For the specific scenario: If you'll work January-June earning above the limit, then have no earnings July-December, it might make sense to apply for benefits effective July. You'd get slightly higher monthly payments than starting in January, and you wouldn't have any benefits withheld due to excess earnings. 5. All of this applies to your own retirement benefit. As correctly noted, when you reach FRA, you can switch to the survivor benefit if it's higher, with no reduction.

i heard they also look at which days of the month you work? is that true? like if you work the first half of june but then retire mid-month?

Thank you all for the helpful information! I think I'm going to apply for benefits to start in July after I retire in June. That way I avoid having any benefits withheld due to the earnings limit, and I'll make sure to explicitly tell SSA when I retire so they apply the monthly test for the rest of the year. I really appreciate everyone sharing their experiences and knowledge. This is such a complicated system to navigate!

Just want to point out that the Earnings Limit is HIGHER if you reach your Full Retirement Age during the year! So if your FRA is in 2025 the limit is different than if your FRA is later! Look it up on ssa.gov because most people dont know this!!!

my mom just went through this whole thing last year. make sure you keep ALL your paystubs so you can prove exactly which months you earned what. social security made a mistake with her record and it took 5 months to fix because she couldn't find her january pay stub from last year.

Great advice from everyone here! I'm going through a similar situation myself and wanted to add a few things I learned from my research: 1. The "special rule" for the first year of benefits is key - you can receive benefits for any month your earnings are under the monthly limit, even if your annual earnings exceed the yearly limit. But you MUST notify SSA when you retire mid-year. 2. Regarding timing: Starting in July (after you retire in June) is probably smart since you'll avoid the earnings limit issue entirely and get a slightly higher monthly benefit (less reduction for fewer months of early claiming). 3. Keep detailed records of everything - pay stubs, retirement date, when you notify SSA, etc. The system can be glitchy and you want documentation. 4. One thing I haven't seen mentioned: Make sure you understand how your employer reports earnings to SSA. Some employers report by pay date, others by work period. This can affect which "month" your earnings are counted in. The survivor benefit strategy sounds solid - taking reduced benefits now won't affect your survivor benefit amount at FRA. Just make sure to follow up when you reach FRA to make the switch if the survivor benefit is higher. Good luck navigating this maze!

One thing I'd add that might help with your planning - if you do decide to start benefits in July after retiring in June, make sure you apply for Social Security about 3 months beforehand (so around April). The application process can take time, and you want your benefits to start the month after you retire, not get delayed because of processing time. Also, when you notify SSA about your mid-year retirement, ask them to send you written confirmation that they've noted your retirement date and will apply the monthly earnings test. Having that documentation could save you headaches later if there are any discrepancies. Your strategy of taking reduced benefits now and then switching to survivor benefits at FRA is actually pretty common and smart - you're essentially getting some income while maximizing your survivor benefit later. Just make sure to mark your calendar for when you reach FRA so you don't forget to make that switch!

Just wanted to chime in as someone who recently went through the SSA application process myself. A few additional tips that might help: 1. When you call SSA to notify them about your mid-year retirement, ask them to put a "remarks" note on your file about the monthly earnings test. This creates an additional paper trail beyond just verbal notification. 2. Consider doing a "practice run" with SSA's online benefit calculator before you apply. You can input different start dates (January vs July) to see the actual dollar difference in monthly benefits. Sometimes the numbers surprise you. 3. If you're planning to retire in June, be very clear with SSA about your "last day of work" vs your "last day of employment." Some people have a gap between when they stop working and when they're officially off payroll, and this can affect the earnings calculations. 4. One more thing about the survivor benefit switch at FRA - make sure SSA has your deceased spouse's complete earnings record on file. Sometimes there are missing quarters or employers that didn't report correctly, and you want time to fix any issues before you need to make the switch. Your July start date plan sounds wise given your work situation. You're definitely thinking this through the right way!

One more consideration for your timing decision - if you're planning to work until June and then start benefits in July, make sure you understand how any bonuses, vacation payouts, or severance payments might affect your earnings calculations. These can sometimes be attributed to months after you actually stop working, which could impact the monthly earnings test. Also, since you mentioned you're planning to switch to survivor benefits at FRA, it might be worth requesting a benefit estimate for both your own benefits and the projected survivor benefit now, so you can confirm that the survivor benefit will indeed be higher. Sometimes people assume it will be, but it's good to verify the actual numbers. The SSA's online "my Social Security" account is really helpful for tracking all of this - you can see your earnings record, get benefit estimates, and eventually manage the switch to survivor benefits all in one place. If you haven't created an account yet, I'd recommend doing that early in your planning process. Your overall strategy sounds solid though - taking some income now while preserving the higher survivor benefit for later is a smart approach when you have that option available.

I'm in a very similar situation and have been researching this extensively! One thing I discovered that might help your decision is that SSA has a "retirement test calculator" on their website that's separate from the main benefit calculator. It specifically helps you figure out how the earnings limit will affect your benefits based on when you start and when you retire. Also wanted to mention something about the survivor benefit timeline - while it's true that taking reduced benefits now won't affect your survivor benefit amount at FRA, you might want to consider applying for the survivor benefit switch a month or two BEFORE you actually reach FRA. I've read that processing can sometimes take a few weeks, and you don't want any gap in getting the higher payment. One last thing - if you're working with a financial advisor or tax professional, make sure they understand SSA rules specifically. I found that some general financial advisors aren't as familiar with the nuances of Social Security timing, especially the monthly vs annual earnings test distinctions that everyone's been discussing here. Your July start plan after retiring in June sounds really well thought out. The peace of mind of avoiding the earnings limit complications is probably worth any small reduction in total benefits from waiting those extra months.

This thread has been incredibly helpful for understanding these timing complexities! As someone who's been trying to navigate similar decisions, I wanted to add a couple of things I learned from my own research: 1. When you do notify SSA about your mid-year retirement for the monthly earnings test, make sure to ask them specifically which form or procedure they use to document this. I've read that some offices are more familiar with this process than others, and you want to make sure the person helping you knows exactly what you're requesting. 2. Since you're planning the survivor benefit switch at FRA, it might be worth calling SSA now to verify they have your deceased spouse's complete Social Security Statement on file. Sometimes there are discrepancies or missing employer reports that can take months to resolve, and you'd want to handle that well before you need to make the switch. 3. One consideration for your July vs January decision: if you start in July, you'll have fewer months of reduced benefits on your record, which means less total money received before FRA, but also a slightly smaller "early retirement reduction" applied to your benefit. The math might surprise you either way. Your strategy of taking some income now while preserving the full survivor benefit for later is really smart. The July start timing seems like it avoids a lot of potential complications with the earnings limit too.

As someone who recently navigated this exact timing decision, I can share what ultimately worked for me. I was in almost the same situation - planning to start SS at 65 while still working, then switch to survivor benefits at FRA. After going through all the calculations and calling SSA multiple times, I ended up starting benefits in the month after I retired (similar to your July plan). Here's why this worked best: 1. **Simplicity is golden** - Avoiding the earnings limit entirely eliminated so much stress and potential for errors or delays in payments. 2. **The monthly benefit increase was more significant than I expected** - Those extra months of delayed claiming (January to July) actually added up to a meaningful difference in my monthly payment. 3. **Documentation was crucial** - When I called SSA to set everything up, I asked them to email me a summary of our conversation confirming my retirement date and that the monthly earnings test would apply for the remainder of the year. Having that written record gave me peace of mind. One thing I wish I'd known earlier: SSA's processing time for benefit applications can be unpredictable. I applied 4 months before I wanted benefits to start, which turned out to be just right. Don't wait until the last minute. Your survivor benefit strategy is spot-on. The early claiming reduction on your own benefits truly doesn't affect survivor benefits - I confirmed this multiple times with different SSA representatives. The July start plan sounds very well reasoned given your work situation!

This has been such an educational thread! I'm not in this exact situation yet, but I'm getting close to having to make similar decisions and this conversation has highlighted so many important details I wouldn't have thought about. A few things that really stood out to me: 1. The distinction between the monthly vs annual earnings test in the first year - I had no idea this existed and it seems like it could make a huge difference for people retiring mid-year. 2. The importance of getting written documentation from SSA about retirement dates and which earnings test will apply. Given how complex these rules are, having that paper trail seems essential. 3. The timing of applications - starting the process 3-4 months early to account for processing delays is such practical advice. One question for those who've been through this: When you called SSA to discuss the monthly earnings test, did you find that all representatives were familiar with this rule, or did you have to ask for supervisors or specialists? I'm wondering if I should be prepared to escalate if the first person I talk to isn't familiar with the process. Thanks to everyone who shared their experiences - this kind of real-world knowledge is so much more valuable than just reading the official SSA publications!