Social Security benefits starting before 70 while still working - any downsides to my strategy?

Thank you! That's reassuring to hear. I wasn't sure if there were any catches I wasn't considering. Do you know if this strategy might affect any other benefits down the road? Or once I'm approved at this amount, that's pretty much it (aside from the COLA adjustments)?

does that service actually work? i tried calling SS last week and gave up after being on hold for like an hour.

It worked for me! The key thing is they actually call you back when they get an SSA agent on the line, so you're not stuck listening to that hold music forever. Saved me a ton of frustration.

This is an important point. At your income level, assuming you're earning enough to not need the Social Security payments immediately, you'll likely have 85% of your benefits subject to federal income tax. This doesn't mean you'll lose 85% to taxes - it means that 85% of your benefit amount will be counted as taxable income. Depending on your tax bracket, this could still make your strategy worthwhile, especially if you're investing in tax-advantaged accounts. You might want to consult with a tax professional to run the specific numbers for your situation.

You're absolutely right that benefits must begin by age 70, regardless of work status. The original poster is talking about taking benefits at age 67 (their Full Retirement Age) instead of waiting until 70. They're wondering if there are any downsides to this strategy since they're still working.

That's great to hear! Did you notice any significant tax impact from receiving both work income and SS at the same time?

yep taxes were higher that year for sure. but i still came out ahead overall. just be prepared for that when tax time comes around!

The earnings test only applies if you claim benefits before your Full Retirement Age (FRA). Once you've reached your FRA (which is between 66-67 depending on birth year), there's no limit to how much you can earn while receiving full Social Security benefits. The original poster is already at their FRA, so they can earn unlimited income without any benefit reduction. This is a common misconception that leads some people to unnecessarily delay claiming benefits when they could actually begin collecting.

This is an excellent point about IRMAA (Income-Related Monthly Adjustment Amount). Your Medicare Part B and Part D premiums can indeed increase if your income exceeds certain thresholds. For 2025, these adjustments are based on your 2023 tax return. So your current income strategy could affect your Medicare costs down the road. It's something to factor into your calculations if you're already on Medicare or will be soon.

That's interesting - I didn't realize my benefit could still increase from additional work even after I've started receiving payments. Is that adjustment automatic, or would I need to request a recalculation from SSA?

The adjustment should happen automatically. The SSA reviews your earnings record each year when your employer reports your wages. If they determine that your additional earnings will increase your benefit amount, they'll recalculate and adjust your payments accordingly, usually around October of the following year. You don't need to request this recalculation - it's part of their standard process.

I-bonds can certainly be a good option for preserving capital with inflation protection. However, there's a $10,000 annual purchase limit per person for electronic I-bonds (plus potentially $5,000 more from tax refunds), which may be less than the total SS benefits received in a year. For someone receiving $2,840 monthly as mentioned, that's about $34,000 annually, so additional investment vehicles would be needed beyond the I-bond limit.