Social Security early retirement + part-time work - will my income stay about the same?

I went through this exact situation last year! The math works, but there are several things to consider:1. The earnings limit for 2025 is $22,320, so you're right about that. For every $2 you earn over that amount, SSA withholds $1 in benefits.2. Your SS benefits will be permanently reduced by taking them early (approximately 30% reduction at age 62 compared to your FRA)3. Don't forget your SS benefits will be taxed if your combined income exceeds certain thresholds (starting at $25,000 for single filers)4. Health insurance is a HUGE consideration before MedicareIn my experience, working part-time + early SS put me at about 85% of my previous income. The health insurance was the biggest hit - cost me $750/month for a decent marketplace plan.

Thank you! The health insurance part is what scares me the most. $750/month would really eat into my budget. Did you look into any options for subsidized ACA plans? I'm also worried about the permanent reduction. If my mom's situation improves, I'd like to go back to full time, but then I'm stuck with that reduced SS amount forever...

i did this exact thing 2 years ago to help my dad. ended up working 3 days making 21k and got early ss. honestly it was fine money wise but everything depends on your health costs!! i was paying almost 900 bucks a month before medicare and had no dental. so be ready for that part

The ACA marketplace has gotten A LOT better with subsidies since the American Rescue Plan. You can actually get pretty affordable coverage depending on your income. I'm paying $210/month for a silver plan that would have been $850+ before subsidies. Definitely check healthcare.gov and run the numbers based on your projected income (SS benefits + part-time work).

My situation was similar, but BE CAREFUL with the calculation! SSA doesn't count gross earnings - they look at your earnings BEFORE any deductions for taxes, insurance, etc. So if you're planning to earn $22,320 to stay under the limit, that's your gross amount, not take-home.Also, the reduction isn't exactly 1-for-2 over the limit. They take ENTIRE MONTHS of benefits if you go over! I learned this the hard way and had 3 months of benefits completely withheld because I miscalculated. You need to be super precise with your earnings.And don't forget Medicare doesn't start until 65, so you've got several years of health insurance to figure out!

Oh no, I didn't realize they withhold entire months! That makes precise planning even more important. Thanks for the warning. I'll make sure to monitor my earnings closely if I go forward with this plan.

I struggled for months trying to reach SSA to discuss these exact questions! Their phone lines are completely overwhelmed. After dozens of failed attempts and getting disconnected, I finally used a service called Claimyr (claimyr.com) that got me connected to a real person at Social Security in under 30 minutes. They have a video showing how it works: https://youtu.be/Z-BRbJw3puU. The agent I spoke with ran a detailed benefits calculation based on my specific situation, which was way more helpful than the online estimates.

did they charge u for that service?

Yes, there is a fee, but it was absolutely worth it to me after wasting days trying to get through. The SSA agent was able to give me personalized advice about my early retirement options and run different scenarios for my specific earnings record - something you can't get from the website calculators.

The financial part might work but don't forget what this means for your long-term benefits!! When I took early retirement at 62 my monthly payment was $1,876 instead of the $2,680 I would have gotten at my full retirement age. That's $804 LESS EVERY MONTH FOR THE REST OF MY LIFE!!!! And the COLA increases are calculated on the lower amount too so the gap just keeps growing.If your mom might not need your help for many years, think CAREFULLY about this decision. I'm now 72 and DEEPLY regret taking early retirement. Once you take the reduction, it's PERMANENT.

That's a great point about the COLA increases being on the reduced amount. I hadn't thought about how that would compound over time. This is getting more complicated than I expected.

Another option to consider: Can you use FMLA for some time off to help your mom instead of reducing your hours permanently? That would protect your job and let you delay claiming SS. You might also look into whether your state has a paid family leave program that could help.Also, have you checked if your mom qualifies for Medicaid home care services? That could provide some caregiving help without you having to cut your hours so drastically.

this is actually great advice! i wish someone told me about the medicaid home care option before i quit my job. would have saved me a lot of $$$

Let me provide some concrete numbers that might help your decision. If your current take-home is $1,100/week, that's about $4,767/month. If you reduce to part-time at 40% of your hours, you'd make about $1,907/month from work. Add your $2,245 in SS benefits, and you'd have $4,152/month before any benefit reductions or taxes.However, SS benefits are taxable if your combined income (adjusted gross income + nontaxable interest + half of SS benefits) exceeds $25,000. Based on your numbers, you'd likely pay taxes on 50-85% of your benefits.So your actual monthly income might be closer to $3,800-$3,900 after taxes, which is about 80-82% of your current take-home pay. Then subtract health insurance costs ($600-900/month potentially), and you're looking at more like 60-70% of your current disposable income.

Thank you for breaking down the numbers like this. Seeing it laid out clearly helps a lot. It does seem like I'd be taking a significant income hit, especially with the health insurance costs. I might need to look at other options or see if my employer would allow a flexible schedule without reducing my hours so dramatically.

just wondering why u cant get medicaid for your mom and hire a caregiver? my sister did that for our dad, cost nothing and didnt have to quit her job

We've looked into that, but Mom doesn't qualify financially for Medicaid yet. She has some assets that put her over the limit. And she's really resistant to having

One last consideration: if you do take early retirement and then your mom's situation changes and you want to return to full-time work, you'll face the earnings limit until you reach your FRA. For 2025, if you earn over $59,520 in the year you reach FRA (but before the month you reach FRA), SSA withholds $1 for every $3 over the limit.It's a complex decision with many variables. If your mom needs care for just a year or two, it might be better to look for alternative caregiving solutions. If this is likely a long-term arrangement until you reach Medicare age, the financial trade-offs of early SS might make more sense.

I appreciate all this information. I think I need to speak directly with SSA to get calculations specific to my situation, and also explore more caregiving options for Mom. The permanent reduction in benefits is making me reconsider if there might be better alternatives.