Social Security at 64 while working in 2025 - Will earnings limit affect my benefits?

You've got the right idea, but let me clarify how the earnings test works. When you're under Full Retirement Age (FRA) and working, SSA will deduct $1 from your benefits for every $2 you earn above the annual limit (which will likely be higher than $22,300 in 2025 due to COLA adjustments). Here's the important part: SSA counts your ENTIRE earnings for 2025, not just what you earn after you start collecting. So if you've already earned $22,300 before December when you start benefits, you would still be at the limit. However, there is a special rule for the first year you retire. SSA can use a monthly earnings test rather than annual if it benefits you. Under this rule, regardless of your annual earnings, you can receive full benefits for any month you earn under the monthly limit (annual limit divided by 12) AND don't perform substantial services in self-employment.

This is where that special first-year rule comes in handy! If you stop working completely before you start claiming benefits, you can use the monthly earnings test. For any month you earn under the monthly limit (probably around $1,860 in 2025) AND don't work, you'll get your full benefit regardless of annual earnings. So in your scenario - if you earn $30,000 by November but earn $0 in December when you claim, your December benefit would NOT be reduced. SSA will apply whichever calculation works better for you in your first year of retirement. I went through this exact situation last year. Just make sure you tell SSA when you apply that you've retired or reduced your work so they know to consider the monthly test.

When I claimed at 63 last yr, i had already made more than the limit for the whole year, but they still gave me full paymt for the months after i stopped work. just had to tell them i wasnt workin anymore. didnt ask for proof but i think they can check w/ IRS if they want to.

They didnt mention it until i told them i just stopped working. then the rep explained bout the monthly thing. wouldnt have known to ask otherwise!

Just be careful with that special first year rule - it only applies to the first year you RETIRE, not necessarily the first year you claim benefits. If you've already retired before 2025 and then claim in December 2025, it might not apply the way you want. The rules are so confusing!!

NONE of this makes any sense!!!! Why does SS make everything SO COMPLICATED?? I've been trying to figure out these same rules for months and get different answers from everyone. Called the SS office THREE TIMES and got three completely different explanations about the earnings test. It's almost like they WANT us to make mistakes so they can take our money back later!!! And good luck getting through to them on the phone...

I ran into a similar situation last year but my earnings were WAY over the limit (like 45k) before i stopped working in october and started benefits in november. They STILL gave me the full paymenty for november and december because of that special rule. Just make sure you ACTUALLY stop working in december - no side gigs, no contract work, nothing. any earnings in the month you claim could mess it up.

One more important thing to understand about the annual earnings limit: When SSA reduces your benefits due to earnings, those benefits aren't truly "lost" forever. After you reach Full Retirement Age, SSA will recalculate your benefit amount to give you credit for the months they withheld benefits. This results in a permanent increase to your monthly benefit amount going forward. So while you may see reduced benefits while under FRA if you work, you'll eventually be compensated for those reductions through higher monthly payments for the rest of your life after FRA.

Yes, that recalculation at FRA is absolutely correct. SSA essentially treats those months where benefits were withheld due to work as months where you didn't collect early retirement. Since your reduction for claiming early is based on how many months before FRA you receive benefits, having some months withheld means your early claiming reduction gets partially reversed. It's not widely understood, but it is official SSA policy. You won't see those specific benefits that were withheld, but your monthly amount increases going forward after FRA.

Just wanted to add that the earnings limit for 2025 hasn't been officially announced yet - the $22,300 figure is just an estimate based on previous years. The actual 2025 limit will probably be higher due to inflation adjustments. So you might be able to earn a bit more than you're planning before hitting the limit. SSA usually announces the new amount in October of the previous year.

My brother tried to do something similar and it did NOT work out - they took back a bunch of his payments months later because he didn't understand the rules correctly. Make sure you get this in writing from SS before you count on it!!

Thank you everyone for all this helpful information! I'm going to: 1) Check the official 2025 earnings limit when it's announced 2) Make sure I completely stop working before December when I claim 3) Specifically mention to SSA when I apply that I've retired so they apply the monthly test 4) Keep documentation of when I stopped working It's much clearer now how this works. I was worried I'd have to micromanage my earnings to exactly hit the annual limit, but using the monthly rule makes more sense for my situation.