Social Security at 63 while working over the earnings limit - will my PIA still increase?

Yes, your husband's PIA will continue to increase while he's working, even if he's already collecting benefits. Those additional earnings could potentially replace some of those low-earning years in his calculation. However, keep in mind that starting at 63 means he'll have a permanent reduction of about 25% from his full retirement age benefit amount. Regarding the earnings limit, the 2025 amount hasn't been officially announced yet, but based on inflation adjustments, it'll likely be around $24,500-$25,000. And yes, he will face the $1 for $2 reduction for everything he earns above that limit. One correction though - waiting until January doesn't let him avoid the monthly earnings test completely. The monthly earnings test only applies in the first year of retirement, and it's based on whether he earns over a monthly limit (about $2,040/month in 2025). Since he's continuing to work, he'll still be subject to the annual earnings test.

You're absolutely right about the earnings test disappearing at full retirement age. Once your husband reaches his FRA (likely 67 based on his age), he can earn unlimited income with no benefit reduction. Also, SSA will recalculate his benefit at FRA to give back (gradually, in increased monthly payments) what was withheld due to the earnings test. Another important consideration: while his PIA can increase from continued work, those increases might not fully offset the early filing reduction. Have you considered whether it might be more advantageous for him to wait until FRA to file? Especially with his work history having low-earning years, those final higher-earning years could make a meaningful difference if he delays filing.

I went thru something similar with my wife last year. She started benefits at 63 while still working. Here's what happened: 1. Yes, her PIA continued to increase from her ongoing work 2. BUT they withheld almost all her benefits because she earned way over the limit 3. The adjustments for earnings were messy - sometimes they'd withhold too much, then we'd get a random payment later 4. The tax situation got complicated too - SS benefits can be taxable based on your combined income In hindsight, we probably should've waited until she fully retired or reached FRA. The paperwork and adjustments were a headache. And remember, that reduction for claiming early is PERMANENT - it doesn't go away when he reaches full retirement age.

Since your 66 and husband is 63, have you looked into file and suspend strategies? I thought there might be a way to coordinate your benefits better, especially since his benefit is lower than yours.

I just want to add - don't forget about how this affects Medicare! If he starts SS at 63, he won't automatically get Medicare since that starts at 65. When he does apply for Medicare at 65, he'll get Parts A & B automatically because he's already receiving SS benefits. But if he's still working and has employer coverage, he might want to delay Part B to avoid paying premiums while still covered elsewhere. You'll need to actively contact SSA about this when the time comes.

Has anyone tried to actually CALL the SSA office to get answers on this stuff? I spent 3 hours on hold last month trying to ask a similar question about working while on SS and never got through!! So frustrating!

WAIT before he does ANYTHING!! Has he looked at what his survivor benefit would be for YOU if he dies first?? If he claims at 63, your survivor benefit would be based on that REDUCED amount! If his health is good and longevity runs in his family, waiting might be MUCH better for your financial security long-term!! This is something NOBODY told us and I'm still mad about it!!

Another important point - since your husband's benefit is only about 40% of yours, you should definitely consider how his filing decision impacts potential spousal benefits. While he's alive, he wouldn't qualify for spousal benefits on your record until you file for your own benefits. After you file at 70, he could potentially receive a spousal supplement if 50% of your PIA exceeds his own benefit (including reductions for early filing). This gets complicated, but it's worth understanding the full picture. The timing of both your claims can have significant impacts on your combined lifetime benefits.

Thank you everyone for all this helpful information! We definitely have more to consider than I initially thought. I'm going to talk with my husband about possibly waiting until his FRA after learning about the survivor benefit implications and the hassle of dealing with the earnings test. Seems like the small amount he'd get now (after reductions) might not be worth the permanent cut to his benefit. Really appreciate all your insights!