Should I claim Social Security at 66 or wait until my FRA in 2025? Working part-time with earnings limit concerns

Wait til FRA!! The earnings test will eat away ur benefits now and its just 4 months away. I claimed early at 65 while working and regret it BIG TIME. SS took back so much money it wasnt worth it

Your situation requires some calculations to make the best decision. Since you're earning $36,000 annually and the earnings limit is $27,900, you'd exceed the limit by $8,100. This means approximately $4,050 would be withheld from your benefits annually (roughly $1 withheld for every $2 over the limit). Breaking it down: - Claiming now: $2,425/month = $29,100 annually - Minus estimated withholding: $4,050 - Actual annual benefit: $25,050 If you wait until FRA: - $2,550/month = $30,600 annually - No withholding due to earnings The difference is about $5,550 annually in favor of waiting. Plus, any benefits withheld before FRA are eventually returned through a recalculation of your monthly benefit after you reach FRA. But this recalculation takes time to catch up. Based purely on the numbers, waiting until FRA makes financial sense unless you have an immediate need for the income.

My sister claimed at 66 and 3 months last year while still working part time and she said the paperwork was a NIGHTMARE!!!! She had to report her earnings every month and they kept adjusting her benefit amount. Then they overpaid her and wanted money back! Just wait the few months if you can!!

Have you considered that delaying also gives you those delayed retirement credits? Each month you wait past 66 adds a bit more to your monthly amount. Not huge amounts but it adds up over time.

One thing nobody's mentioned is that the earnings test only applies to EARNED income. If you have investment income, rental properties, etc. - those don't count toward the limit. Also, the year you reach FRA, the earnings test becomes much more generous (only counting income before the month you reach FRA and with a higher threshold). Another important consideration: if you claim now and have benefits withheld due to earnings, those "lost" benefits aren't truly lost forever. When you reach FRA, SSA recalculates your benefit to give credit for months when benefits were withheld. It's essentially a temporary reduction. I personally think waiting until FRA makes sense in your situation, but I wanted to provide these additional facts for a complete picture.

I was in almost your exact situation two years ago! Ended up waiting til FRA and it was definitely the right call for me. I was losing sleep over potentially getting overpayment notices or having to deal with reporting my earnings. The peace of mind from waiting was worth it alone, and financially it worked out better too. BTW, when I was trying to call SSA to discuss my options, I was going CRAZY with the wait times and kept getting disconnected. I found this service called Claimyr (claimyr.com) that got me through to a real person in under 20 minutes. They have a video showing how it works: https://youtu.be/Z-BRbJw3puU - totally worth it when you're ready to apply. Saved me hours of frustration!

Have you looked into the break-even point? Like how many years of collecting the higher amount would it take to make up for the months you didn't collect anything? I did that calculation when deciding when to take my benefits and it helped me decide.

Just curious - have u considered filing a restricted application for spousal benefits only (if ur married) and letting ur own benefit grow? My neighbor did this and got some $ now while still getting a bigger check later

Thanks everyone for the helpful feedback! After considering all your points, I'm leaning strongly toward waiting until my FRA in June 2025. The earnings test complications, potential overpayments, and reporting requirements sound like headaches I'd rather avoid. Plus, the math seems to favor waiting when you factor in my current earnings. I appreciate all the different perspectives - this has been incredibly helpful!