Social Security benefits at FRA with $62,000 income - Will working reduce my payments?

I started collecting at my FRA last year while still working. Once you reach your FULL retirement age, there is NO earnings limit! You can make as much as you want without any reduction in benefits. So starting in September 2025 when you hit FRA is perfectly fine.

The person above is partly right, but there's some nuance here. In the year you reach FRA, there's a special rule. For 2025, you can earn up to about $59,520 in the months BEFORE the month you reach FRA without any reduction. After that, they reduce $1 for every $3 you earn above that limit, but ONLY for earnings in months before your FRA. Since you've already earned $62,000 in the first three quarters and your FRA is in September, you might see a small reduction. But once you hit your FRA in September, there is absolutely no earnings limit going forward. If you wait until January 2026, you'd avoid any potential reduction, but you'd also miss out on 4 months of benefits (Sept-Dec 2025).

Whats the big deal?? just take the money in september. Your barely over the limit so your talkin a tiny reduction for a few months. Dont overthink this.

I had almost the exact same situation last year. I reached FRA in August 2024 but had made about $55,000 before then. I started collecting in August, and yes, they reduced my first few payments a tiny bit, but by December it was all sorted out. One thing to know - even if they reduce your benefits due to earnings, they recalculate later and give you a slightly higher benefit to make up for those reductions once you're past FRA. It's called the Adjustment to the Reduction Factor (ARF).

Let me clarify something important: The earnings test for the year you reach FRA in 2025 is $59,520 for the months BEFORE you reach FRA. Since you reach FRA in September, that applies to January through August earnings. If your $62,000 was earned evenly throughout those first 8 months, you're only slightly over the limit, which would mean a very small reduction. However, if most of that income was concentrated in just a few months, the calculation would be different. Call Social Security to discuss your specific situation, though good luck getting through on the phone. I spent 3 weeks trying to reach someone about my retirement benefits calculation.

WRONG INFORMATION being shared here!!! The earnings limit applies to the months BEFORE FRA, not after! If you made $62,000 from January through August (before September FRA), then YES you will see reductions. But if some of that money was earned in September or later, then that portion DOESN'T COUNT toward the limit! This is why so many people mess up their SS benefits. The rules are COMPLICATED and even the SSA reps get it wrong sometimes!!!

When i was getting close to FRA my neighbor told me to just quit working for a few months and then go back after I hit FRA. I thought that was ridiculous! I had a good job that I enjoyed. Glad I didn't listen to him lol

Based on what you've shared, starting your benefits in September 2025 when you reach FRA makes the most sense. The potential reduction for exceeding the earnings limit by a small amount for the pre-FRA months would be minimal compared to giving up four complete months of benefits by waiting until January 2026. Remember that at your FRA, you'll receive 100% of your primary insurance amount (PIA). If you delay past FRA, you earn delayed retirement credits of 8% per year (or 2/3% per month) up to age 70. But if you're continuing to work anyway, there's typically no financial advantage to delaying once you've reached FRA unless you're trying to maximize your benefit at age 70.

Great decision, Marina! Just wanted to add one more point that might be helpful - when you do file in September, make sure to keep good records of your monthly earnings for 2025. The SSA will need to verify exactly how much you earned in the months before your FRA versus after. Having clear documentation (pay stubs, etc.) can help speed up the process if they need to recalculate anything. Also, don't be surprised if your first few benefit payments seem a bit off while they sort out the earnings test calculation - it usually gets corrected within a few months. Good luck with your retirement planning!

One thing I'd add is that if you're planning to continue working past FRA, you might want to consider whether delaying benefits until age 70 could be worth it for the delayed retirement credits. Since you'll be earning $62K+ annually anyway, those 8% annual increases from FRA to age 70 can really add up over time - especially if you're in good health and expect to live well into your 80s or 90s. Just something to run the numbers on! But if you need the cash flow now or aren't sure about your longevity, starting at FRA is definitely the safe choice.

I'm in a similar situation but a few years behind you - reaching FRA in 2027. Reading through all these responses has been incredibly helpful! One thing I'm curious about that hasn't been mentioned yet: do any of you know if there are tax implications to consider when starting benefits while still working? I've heard that Social Security benefits can become taxable if your combined income is high enough, and with a $62K salary plus benefits, that might push you into a higher tax bracket. Has anyone dealt with the tax side of this decision? I'm wondering if that's another factor to weigh when deciding between starting at FRA versus waiting until 70 for the higher monthly payments.

This has been such a helpful discussion to follow! I'm actually dealing with a very similar situation - I'll be reaching FRA in November 2025 and have been wrestling with the same decision about when to start benefits while continuing to work. Reading through everyone's experiences and insights has really clarified things for me. The point about keeping detailed earnings records by month is especially valuable - I never would have thought about that documentation being so important for the SSA's calculations. It's also reassuring to hear from people like Butch who went through this exact scenario and came out fine on the other side. The tax implications that Dmitry brought up are definitely something I need to research more for my own situation too. Thanks to everyone who shared their knowledge and experiences here!

This thread has been incredibly informative! As someone who's about to turn 62 and starting to think seriously about Social Security timing, I'm learning so much from everyone's real-world experiences. The distinction between earnings before and after FRA that several people explained is something I definitely didn't understand clearly before. I'm curious - for those of you who are continuing to work past FRA, have you found that your Social Security benefits get recalculated annually based on your ongoing earnings? I've heard that SSA automatically recalculates your benefit each year if your recent earnings are higher than what was used in your original calculation, but I'm not sure how that actually works in practice. It seems like that could potentially increase your monthly benefit amount even after you start collecting, which might be another factor to consider in the timing decision.