How will earnings before my FRA in August 2025 affect Social Security payments starting in September?

Good news! Once you reach your FRA, the earnings test no longer applies. For 2025, SSA will apply the monthly earnings test for the months before your FRA. Your earnings after reaching FRA in August won't count toward the limit at all. Specifically, they'll look at January-August earnings. For 2023, the monthly limit was $1,770 (the yearly limit of $21,240 divided by 12), so the 2025 limit will be somewhat higher. If you earned over the monthly limit in any month before FRA, benefits would be reduced for that month. But starting with September 2025, you can earn as much as you want with no reduction!

i went through this last yr. they dont care what u made once u hit fra. take ur benfits and keep working! 👍

The way Social Security handles the earnings test in your FRA year is special. For 2025, they'll only count earnings before the month you reach FRA. So if your FRA is in August: 1. From January-August, the 2025 monthly earnings limit applies (probably around $1,950-$2,000 per month based on recent COLA increases) 2. From September-December, NO earnings limit applies With your $42,000 annual salary, that's about $3,500 monthly - so you would exceed the monthly limit. Each month you exceed the limit before FRA, they withhold benefits for that month. But once you start benefits in September, you're good - no matter how much you earn after reaching FRA. Here's what your letter from SSA will probably say: "We included only the earnings you made before the month you reached full retirement age."

You guys are making this WAY too complicated. I just went through this mess last year. The SSA website is no help and forget trying to get someone on the phone! Here's what happened to me: I hit my FRA in October 2024 but kept working. They DEFINITELY looked at my income from January-September 2024 and I got a nice surprise letter 6 months later saying I earned too much and had to pay back $4,200!! 😡 So don't be shocked if they come after you later even when you think you've followed all their stupid rules. The SSA system is BROKEN.

If anyone's still struggling to reach SSA about this or other retirement benefit questions, I had great luck using Claimyr (claimyr.com). After spending weeks trying to get through the normal 800 number with no luck, their service got me connected to a real SSA agent in under 20 minutes. They have a video demo showing how it works: https://youtu.be/Z-BRbJw3puU The agent I spoke with confirmed exactly what others have said here - they only count earnings before the month you reach FRA in your FRA year. After that, earn as much as you want!

One important detail that no one has mentioned yet: If you're planning to continue working after starting benefits, remember that your higher earnings could potentially increase your benefit amount in the future. SSA automatically reviews your record each year, and if your recent earnings are higher than one of the 35 years used to calculate your benefit, they'll recalculate and increase your monthly payment. So not only can you earn unlimited amounts after FRA without penalty, those earnings might actually boost your benefits!

my sister said somethin different. she said they take ur TOTAL income for the year and divide by 12, and if that's over the limit they reduce bennefits. im so confused now!!!

I went through EXACTLY this last year. Here's what nobody tells you: make sure you're looking at your actual FRA date carefully. Mine was July 15, 2024, and I thought as long as I reached FRA in July, I was good for July. WRONG! According to SSA, you reach FRA on the day BEFORE your birthday. So I actually reached FRA on July 14, not July 15. What happened? They counted an extra month of my earnings against the limit! It took three calls and a visit to my local office to straighten it out. Double check your EXACT FRA date on your Social Security statement. It might not be what you think!