SS retirement benefits and pre-FRA earnings limit confusion - will I still get anything?

The earnings test is often misunderstood. For 2025, the limit for those under FRA is $22,320 per year (projected). At $7,500/month, you'll earn $90,000 annually, which is $67,680 over the limit. So SSA will withhold $33,840 in benefits ($1 for every $2 over). Since your annual benefit would be $30,000 ($2,500 × 12), they'll withhold ALL your benefits and you'd still owe the difference. You won't receive any monthly payments until you reach FRA or reduce your work income significantly.

Oh no! I had no idea they'd withhold everything. So there's no point in applying until I either cut back my hours or reach full retirement age? Would they just send me a bill for the remaining amount I owe them?

I had the same question last year when I applied early. It doesn't work on a monthly basis like you're thinking. SSA looks at the ANNUAL earnings and withholds FULL monthly payments until the withholding amount is satisfied. So you wouldn't get $1,250/month - you'd get $0 for most months and maybe a partial payment in one month. It's not a simple reduction to each check.

Exactly right. My wife dealt with this last year. If your annual earnings are high enough, they just withhold ALL your payments. It's not a monthly percentage reduction thing like many people think.

I'm starting to think I made a mistake even considering early filing if I'm still working. Would it be better to just wait until my Full Retirement Age (66 and 8 months) when there's no more earnings limit?

In your situation, I'd definitely wait until FRA since you'll get ZERO benefit while still working at that income level. Just keep in mind that any benefits withheld before FRA do result in a recalculation at FRA to give you credit for those months, but the early filing reduction is still permanent. At your income level, there's really no advantage to filing before FRA unless you plan to significantly reduce your work hours.

This earnings limit is SO CONFUSING!!!!! I've been dealing with the same issue and nobody at SS ever explains it clearly. When I called, I waited TWO HOURS only to get disconnected. TWICE!!! The website makes it sound like they just reduce your benefit a little bit but they actually take ALL OF IT if you earn too much!

Try using Claimyr to get through to SSA faster (claimyr.com). I was struggling with the same issue last month and was getting nowhere with the regular SSA number. The service connected me to an agent in about 15 minutes. They have a video showing how it works: https://youtu.be/Z-BRbJw3puU. The agent I spoke with clearly explained how the earnings test would impact my specific situation, which was super helpful for planning.

my brother thought the same thing but they withheld most of his checks. i think he got like 2 payments the whole year when he was 64 working part time. but after FRA they adjusted his benefit amount upward to account for the months they didnt pay him

That's good to know they at least adjust it later. Did your brother say if it was worth applying early? I'm wondering if I should just wait until FRA now.

To answer your follow-up question - no, they won't send you a bill. If your earnings are high enough that they withhold all benefits PLUS you'd owe more, they simply don't pay you anything and don't collect the difference. But I strongly recommend speaking directly with SSA about your specific situation before making any decisions. The earnings limit rules are complex and your individual circumstances matter.

Thank you for the clarification. I'll definitely contact SSA directly. I had no idea the rules worked this way - the

My advice - if you're going to keep earning $7,500/month, don't bother applying until FRA. I made that mistake. Filed at 63, kept working at my job, and got ZERO payments the whole year. Just pointless paperwork. And the worst part was dealing with SSA's awful phone system trying to understand all this.

This is exactly right. And one more thing - if you DO apply early and they withhold all benefits, remember the earnings test only applies to EARNED income (wages, self-employment). Unearned income like investments, pensions, etc. doesn't count toward the limit.

AND ANOTHER THING!! When they do that recalculation at FRA to adjust for months they withheld, it NEVER seems to work out in your favor. My husband is STILL fighting with them about his adjustment 2 years later!!! The whole system is BROKEN!!!

The adjustment actually can be significant depending on how many months were withheld. For example, if you filed at 63 (36 months early = 20% reduction) but had 24 months of benefits completely withheld due to earnings, at FRA they recalculate as if you filed 12 months early (6.67% reduction). The difference between 20% and 6.67% reduction can be substantial over your lifetime.

This has been really eye-opening. I think I need to completely rethink my retirement strategy. If I keep working at this level, it sounds like there's absolutely no benefit to filing before FRA. I wonder if I should even consider waiting until 70 for the delayed retirement credits since I'm still earning good money? This is way more complicated than I expected.

If you can afford to wait until 70, that's often the optimal strategy for someone still working full-time. Your benefit increases by 8% per year beyond FRA up to age 70. Plus, continuing to work might increase your AIME (Average Indexed Monthly Earnings) if these are high-earning years for you, potentially increasing your benefit even further. But this is very specific to your individual situation - definitely worth consulting with a financial advisor who specializes in Social Security planning.

As someone who went through this exact situation two years ago, I can confirm what others are saying - you really won't see any monthly payments at that income level. I was earning $6,800/month when I filed at 63, thinking I'd get at least something, but they withheld everything. The math is brutal: they look at your ANNUAL excess earnings and withhold $1 for every $2 over the limit. What really caught me off guard was that they don't prorate it monthly - they just stop ALL payments until the withholding amount is satisfied. In hindsight, I should have either reduced my work hours significantly or waited until FRA. The only silver lining is that the recalculation at FRA does help somewhat, but you're still stuck with the permanent early filing reduction. Given your situation, I'd seriously consider waiting until FRA or even 70 if you can swing it financially.

I'm in a similar boat - turning 62 next year and trying to figure out the best strategy. Reading through all these responses has been incredibly helpful, especially the real-world experiences people have shared. It sounds like the key takeaway is that if you're earning significantly above the annual limit, you won't see ANY Social Security payments until you either reduce your income or reach FRA. The "withhold $1 for every $2 over the limit" calculation can easily wipe out your entire benefit if your earnings are high enough. I'm curious though - for those who did wait until FRA or later, how did you handle the transition from full-time work income to Social Security? Did you gradually reduce hours in the years leading up to FRA, or just make a clean break at 66-67? The financial planning aspect of this seems just as complex as understanding the earnings test itself.

This thread has been incredibly enlightening! As someone who's been wrestling with the same decision about early filing vs waiting, I had no idea the earnings test was so all-or-nothing. The way SSA presents it on their website really does make it sound like a gradual reduction rather than complete withholding. What strikes me most is how many people seem to learn this the hard way - filing early only to receive zero payments while still working. One thing I'm curious about that hasn't been fully addressed: for those who did have benefits completely withheld due to high earnings, how did SSA communicate this to you? Did they send notices explaining that your benefits would be $0, or did you just stop receiving payments without much explanation? I'm trying to understand the administrative side of this process in case I decide to file early despite the earnings test implications. Also, when the recalculation happens at FRA, is that automatic or do you need to request it? Thanks to everyone who's shared their real experiences - it's way more valuable than trying to decipher the official SSA publications!

I've been following this discussion closely as I'm facing a similar decision at 64. What really helped me understand the earnings test was scheduling an appointment at my local SSA office rather than trying to navigate the phone system. The representative there was able to run my specific numbers and show me exactly how the withholding would work with my projected earnings. They also explained that the earnings test uses your ESTIMATED annual earnings when you first apply, but then they reconcile it with your actual earnings at the end of the year - so if you earn less than expected, you might get some benefits back, and if you earn more, they might withhold additional benefits the following year. One key point that helped my decision: they showed me a comparison of my total lifetime benefits under different scenarios (filing early with earnings vs waiting until FRA vs waiting until 70). For someone still earning good money, the math usually favors waiting, especially when you factor in that early filing reduction being permanent even after the earnings test no longer applies. The break-even analysis really opened my eyes to how much those extra years of delayed filing could be worth over my lifetime.

This entire discussion has been a real eye-opener! I'm 62 and was seriously considering filing early next year while continuing to work part-time, but after reading everyone's experiences, I'm completely rethinking my approach. The disconnect between how SSA explains the earnings test and how it actually works in practice is stunning - they make it sound like a simple reduction when it's actually an all-or-nothing situation for many people. What's really concerning is how many folks seem to discover this AFTER they've already filed and are dealing with zero payments. I think I'm going to take AstroAdventurer's advice and schedule an in-person appointment at my local SSA office to run the numbers before making any decisions. The idea of getting a written comparison of different filing scenarios with my actual projected earnings sounds invaluable. One follow-up question for those who've been through this: if you're planning to reduce your work hours significantly in the next few years anyway, would it make sense to file early and then adjust your work schedule to stay under the earnings limit? Or is the permanent early filing reduction still too costly even if you can avoid the earnings test withholding? I'm trying to figure out if there's a sweet spot where early filing might make sense for someone who's flexible with their work schedule.

I just went through this exact decision process last year and ended up waiting until FRA - best choice I made! Like you, I was earning well above the limit (about $6,000/month) and initially thought I'd get some reduced benefit. The reality check came when I used the SSA's online calculator and realized I'd receive exactly $0 in monthly payments while still getting hit with the permanent early filing reduction. What really sealed the deal for me was learning that those "withheld" benefits don't just disappear - they get recalculated at FRA, but you're still stuck with the early filing penalty forever. So I'd be getting a smaller benefit for the rest of my life just to receive zero payments for a few years. Made no sense. Instead, I'm using these high-earning years to max out my 401k contributions and build a bigger bridge to FRA. The delayed gratification is worth it when you run the lifetime benefit numbers. At your income level, I'd strongly suggest the in-person SSA appointment route that others mentioned - seeing those scenarios side by side in black and white really drives home how the math works out.

Wow, this thread has been incredibly educational! I'm 61 and was planning to file at 62 while keeping my consulting work that brings in about $5,000/month. After reading everyone's experiences, especially the reality that you can receive $0 in benefits while still being locked into that permanent early filing reduction, I'm completely reconsidering my timeline. The math seems pretty clear - if you're earning significantly above the annual limit, there's really no advantage to filing early unless you're planning to drastically cut your income right away. What really struck me was Santiago's point about using these high-earning years to maximize retirement contributions instead of trying to claim reduced Social Security benefits you won't even receive. I think I'm going to follow the advice here and schedule an in-person appointment at my local SSA office to run my specific numbers. The idea of seeing the lifetime benefit comparisons laid out clearly sounds like exactly what I need to make an informed decision. Has anyone found that the local offices are more helpful than the national phone line for getting these detailed projections? I'm hoping to avoid the phone system nightmare that several people mentioned! Thanks to everyone who shared their real experiences - this community discussion has been far more valuable than anything I've found on the official SSA website.