Social Security earnings limit at 62 - is $23,400 the 2025 threshold before benefits get reduced?

The earnings limit for someone who is under Full Retirement Age for the entire year in 2025 is $22,320 (it was increased from the 2024 amount). So your coworker was pretty close! For every $2 you earn above that threshold, SSA will withhold $1 in benefits. It's not a dollar-for-dollar reduction. For example, if you earn $24,320 (which is $2,000 over the limit), they'll withhold $1,000 of your annual benefits. They typically take this by withholding monthly payments until the reduction is satisfied. Keep in mind that once you reach your Full Retirement Age (probably 67 if you're turning 62 now), there's no earnings limit anymore. You can earn as much as you want without any reduction in benefits.

I went thru this last year after i turned 62. The amount was lower then but same basic idea. First check didnt come for like 3 months so by time i got any money i was already over the limit lol. They just stopped sending payments in November and December. No warning just no $$ showed up!!

There's an important detail missing from previous responses. The earnings limit only applies to wages or self-employment income. It doesn't apply to investment income, pension payments, or other non-work income. Also, only the earnings you make after you start receiving benefits count toward the annual limit. So if you're starting benefits in May, only your earnings from May-December count toward the $22,320 limit for 2025. That means you could potentially earn more than $22,320 for the calendar year if some of that came before your benefits started. Also, in the year you reach Full Retirement Age (FRA), the limits are much higher - $59,520 for 2025, and only earnings before the month you reach FRA count.

Actually, that's not quite right. The annual limit applies regardless of when you start benefits. So for all of 2025, the limit is still $22,320 even if you start in May. The difference is that only earnings from May-December count toward that limit. So if you earned $15,000 January-April (before benefits), those earnings don't count. Then if you earn $20,000 more from May-December, only that $20,000 counts toward the $22,320 limit. You'd be under the limit in that scenario.

The whole SS earnings limit thing is way more complicated than it needs to be!! When I hit 62 three years ago, I thought I understood it, then ended up with a $4,200 overpayment notice because I miscalculated. Spent WEEKS trying to get through to someone at SSA to explain it. By the time I got it sorted out, they'd already garnished two of my checks!! If you're planning to keep working, you might want to just wait until your Full Retirement Age to claim. The reduction for claiming early PLUS the earnings limit headaches might not be worth it.

Yeah, eventually got it sorted, but it was a HUGE hassle. The problem is that you have to ESTIMATE your earnings for the year when you apply, and if you earn more than you estimated, they don't usually catch it until tax season the NEXT year. That's when they compare your actual earnings from your W-2 to what you estimated. So you could be getting full benefits all year thinking everything's fine, then boom - overpayment notice demanding thousands back. It's especially tricky if you have variable income or work overtime that you didn't plan for.

I struggled for WEEKS trying to get accurate info about this exact issue when I claimed early. Called SSA literally 43 times and either got disconnected or was on hold for 2+ hours without ever reaching anyone. Finally tried Claimyr (claimyr.com) after seeing it mentioned here, and they got me connected to a real SSA agent in about 25 minutes. The agent walked me through exactly how the earnings limit would affect my specific situation. Saved me so much stress! There's a video showing how it works: https://youtu.be/Z-BRbJw3puU if you're curious. Way better than endless busy signals.

One thing nobody mentioned - if they do withhold some of your benefits because you exceeded the earnings limit, you'll get that money back later! Once you reach full retirement age, SSA recalculates your benefit and gives you credit for the months they withheld payments. Your monthly benefit actually increases to make up for it over time. My brother-in-law had benefits withheld for 2 years because he was still working good money, but when he hit 67 his monthly check went up by about $180 compared to what it would have been.

This is all really helpful information. I'm starting to think maybe I should just wait until FRA to claim since I plan to keep working at least part-time anyway. Seems like claiming at 62 while still working could create a bookkeeping nightmare with potential overpayments and benefit reductions. I still need to figure out exactly what my benefit would be at 62 vs. 67 to see if waiting makes financial sense. Sounds like I really need to talk to someone at SSA directly about my specific situation before making any decisions.

everyones situation different tho. i HAD to take ss at 62 cuz of health problems even tho i still work some. dont regret it at all!! even with the hassle of earnings limit stuff, that monthly check helped me cut back hours when i needed to for doctors appointments and stuff. just sayin maybe waiting isnt best for everyone

As someone new to this whole SS claiming process, this thread has been incredibly eye-opening! I'm in a similar boat - turning 62 soon and trying to figure out the best strategy. One thing I'm wondering about that hasn't been fully addressed: what happens if you have seasonal work or irregular income? Like if I work more hours during certain months but stay under the annual limit overall? Do they look at it monthly or just annually when they do the final calculation? Also, for those who've been through this - is there a way to adjust your estimated earnings with SSA during the year if your work situation changes? I'd hate to get hit with that overpayment surprise that @Fidel Carson mentioned! Thanks everyone for sharing your real experiences. The official SSA website is so confusing compared to hearing from people who've actually dealt with this stuff.

Great question about seasonal/irregular income! SSA looks at your total annual earnings, not monthly, so you can have higher-earning months as long as you stay under the yearly limit. This actually works in favor of seasonal workers. You CAN update your estimated earnings with SSA during the year if your situation changes - this is really important! You can call them or update it online through your my Social Security account. I'd definitely recommend doing this if you think you'll earn significantly more or less than you originally estimated. The key is being proactive about it rather than waiting for them to discover the difference at tax time. If you report changes as they happen, you can avoid that overpayment nightmare. I learned this the hard way when I picked up some unexpected contract work and didn't report it until year-end. Cost me months of headaches! Also, keep really good records of your monthly earnings throughout the year. Makes everything so much easier when you need to report or verify anything with SSA.

This whole thread has been incredibly helpful! I'm 61 and was planning to claim at 62 next year, but now I'm seriously reconsidering. The complexity of the earnings limit combined with the reduced benefits for claiming early seems like it could create a real mess if I'm not careful. One thing I'm curious about - for those who decided to wait until FRA instead of dealing with the earnings test, how did you handle the financial gap? I was counting on those SS payments to supplement my part-time work income, but it sounds like the peace of mind of waiting might be worth finding another way to bridge those 5 years. Also, has anyone here used the "do over" option? I read somewhere that you can withdraw your SS application within the first 12 months if you change your mind, but you have to pay back everything you received. Wondering if that's a realistic backup plan or just creates more complications. Thanks to everyone sharing their real experiences - this is so much more valuable than trying to decode the official SSA publications!

And this limit applies to GROSS income, not NET, correct? This has implications if you plan to consult, where you may be able to reduce a 60k income to 23k after expenses- but that wouldn't matter if SSA looks at gross income.

Thanks for this detailed thread everyone! I'm 61 and planning to file at 62 as well, but reading about all these potential overpayment issues has me second-guessing. One thing I'm still not clear on - when you estimate your earnings at the time you apply for benefits, are you estimating for just the months you'll be receiving benefits, or for the entire calendar year? Like if I apply in June 2025, am I estimating my earnings from June-December 2025, or my total 2025 earnings including January-May before I claimed? Also, does anyone know if there's a grace period when you first start receiving benefits? I've heard conflicting info about whether they give you a few months to see how your earnings shake out before they start withholding payments. The self-employment net vs gross clarification was really helpful - that could make a big difference for people doing consulting work!

This thread has been incredibly informative! I'm 61 and was planning to claim at 62 while working part-time, but now I'm realizing I need to do a lot more homework first. A few practical questions for those who've navigated this: 1) Is there a way to do a "trial run" calculation to see exactly how the earnings limit would affect my specific situation before I actually file? 2) For people who work hourly jobs with variable schedules - how do you accurately estimate annual earnings when you don't know how many hours you'll get each week? 3) If you're married and your spouse is also working, does their income affect your earnings limit at all, or is it strictly based on your individual earnings? The point about keeping detailed monthly records really resonates - it sounds like documentation is key whether you're dealing with W-2 wages or self-employment income. Thanks to everyone sharing real experiences rather than just regurgitating the confusing official rules. This is exactly the kind of practical guidance I needed to hear!

Wow, this has been such an educational thread! I'm 60 and starting to think seriously about my claiming strategy. Reading through everyone's experiences, it seems like the earnings limit creates a lot more complexity than I initially realized. One thing that's becoming clear is that accurate record-keeping is absolutely crucial, whether you're dealing with W-2 wages or self-employment income. The difference between gross and net earnings for consulting work is particularly interesting - that could be a game-changer for people transitioning to freelance work in their early 60s. I'm leaning toward waiting until FRA now, but I appreciate hearing from people like @Dananyl Lear who had valid reasons for claiming early despite the complications. Every situation really is different. For anyone else reading this who's in the research phase like me, it sounds like the key takeaways are: 1) Use the SSA calculators to model different scenarios, 2) Keep meticulous earnings records, 3) Update your estimates with SSA if your situation changes, and 4) consider whether the reduced benefit + earnings limit hassles are worth it versus waiting for FRA. Thanks to everyone for sharing real-world experiences - this is infinitely more helpful than trying to decode the official SSA publications!

This has been such an incredibly helpful discussion! As someone who's 61 and was initially planning to claim at 62 while continuing to work part-time, I've learned so much from everyone's real experiences. A few key insights that really stood out to me: - The earnings limit is $22,320 for 2025 (not $23,400 as I initially heard) - For self-employment/consulting, they look at NET earnings, not gross - which could be huge for expenses - Only earnings from the months you're receiving benefits count toward the annual limit - You can update your earnings estimate during the year if things change - The overpayment issue is real and can be a major headache if you're not proactive I'm now seriously considering waiting until FRA instead of dealing with the earnings test complexity. The 30% higher benefit plus no earnings restrictions seems like it might be worth the wait, especially after hearing about @Fidel Carson's overpayment nightmare. For those still planning to claim early while working - the advice about keeping detailed monthly earnings records and using SSA's online calculators to model different scenarios seems absolutely essential. Thanks to everyone for sharing both the technical details and the real-world experiences. This kind of community knowledge is invaluable when making such an important financial decision!

As someone who just turned 62 last month and is going through this exact decision process right now, this thread has been incredibly valuable! I've been going back and forth on whether to claim now or wait until FRA, and reading everyone's real experiences has given me so much more clarity than any of the official SSA materials. The earnings limit complexity is definitely more than I bargained for. I'm currently doing some freelance consulting work, and the clarification about NET vs GROSS earnings for self-employment could be huge for my situation. I had no idea there was such a significant difference in how they treat W-2 wages versus 1099 income. What really concerns me after reading this is the potential for overpayment issues. The idea of getting hit with a surprise bill months later because I miscalculated my earnings is terrifying. It sounds like the key is being extremely conservative with estimates and updating SSA immediately if anything changes. I'm leaning toward creating that my Social Security account and running various scenarios through their calculators before making any final decisions. The 30% benefit increase for waiting until 67 is starting to look more attractive when weighed against all these potential complications. Has anyone here successfully managed the earnings limit without major issues? I'd love to hear from someone who navigated this smoothly to balance out some of the cautionary tales!

This entire discussion has been absolutely incredible! As someone who's 63 and went through this exact situation last year, I wish I had found a thread like this before I made my claiming decision. I ended up claiming at 62 while still working part-time retail (about 25 hours/week), and fortunately it worked out okay, but I definitely learned some things the hard way. A few additional tips from my experience: 1) If you're working for an employer (W-2), they report your wages quarterly, so SSA gets updates on your earnings throughout the year - not just at tax time like I initially thought. 2) The "withholding" of benefits doesn't always happen evenly throughout the year. In my case, they calculated I was over the limit in September and just stopped my October, November, and December payments entirely rather than reducing each monthly payment proportionally. 3) One thing that saved me was setting up automatic alerts in my bank account to track my gross pay deposits. Since I had variable hours, this helped me stay on top of exactly where I stood with the earnings limit each month. The success story from @Darcy Moore about managing consulting work is really encouraging! It shows it can work if you're organized and proactive about it. For anyone still deciding, the key seems to be honest assessment of whether you can handle the administrative complexity along with everything else.

This has been such an enlightening thread! I'm 61 and was planning to claim at 62 while continuing my part-time bookkeeping work, but reading everyone's experiences has really opened my eyes to the complexity involved. The distinction between NET vs GROSS earnings for self-employment is huge - I do some freelance bookkeeping on top of my W-2 job, so that could really help me stay under the limit. But honestly, the stories about surprise overpayment notices and benefits just suddenly stopping are making me reconsider the whole strategy. What I'm taking away from this discussion: the earnings limit isn't just about hitting a number - it's about managing a complex system that requires constant attention and record-keeping. The quarterly updates for W-2 workers that @Amina Bah mentioned is particularly eye-opening. I had no idea SSA was tracking earnings that closely throughout the year. I think I need to have a serious conversation with myself about whether I can handle the administrative burden on top of everything else. The 30% higher benefit at FRA is starting to look pretty attractive when weighed against all these potential headaches. Maybe the peace of mind of waiting until 67 is worth more than the extra money now. Thanks to everyone for sharing both the success stories and the cautionary tales - this kind of real-world insight is invaluable!

As someone who's been lurking on this forum for a while but never posted, I had to jump in on this thread! I'm 61 and was dead set on claiming at 62 while keeping my part-time teaching job, but wow - reading through everyone's experiences has been a real eye-opener. The thing that really got my attention was the quarterly reporting for W-2 workers that @Amina Bah mentioned. I had no clue SSA was getting earnings updates that frequently! I was picturing this as an annual reconciliation thing, not something they're tracking in near real-time. That changes everything about how carefully you need to monitor your earnings throughout the year. Also, huge thanks to everyone who clarified the NET vs GROSS distinction for self-employment income. I do some tutoring on the side, and knowing that legitimate business expenses can be deducted could make a real difference in staying under that $22,320 limit. The success story from @Darcy Moore about managing consulting work gives me some hope, but honestly, the administrative complexity is making me lean toward just waiting until FRA. The idea of having to call SSA quarterly, maintain detailed spreadsheets, and constantly worry about overpayment notices sounds exhausting on top of everything else. This thread has been incredibly valuable - way more practical than anything I've found on the official SSA website. Thanks to everyone for sharing real experiences instead of just regurgitating the confusing official rules!

This thread has been absolutely fantastic - thank you to everyone who shared their real-world experiences! As someone who's 62 and literally just started the Social Security application process online last week, I wish I had found this discussion sooner. I'm in a situation similar to many here - wanting to claim early while continuing part-time work (retail, about 20-25 hours/week). What's really struck me from reading through all these posts is how the "simple" earnings limit turns out to be anything but simple in practice. A few things that have completely changed my understanding: - The quarterly W-2 reporting means SSA is tracking earnings much more closely than I realized - The NET vs GROSS distinction for any side consulting/freelance work could be huge - The timing of benefit withholding can be unpredictable (stopping entire months rather than reducing each payment) - Overpayment surprises are a real risk if you're not proactive about updating estimates I'm honestly reconsidering my whole strategy now. The success stories like @Darcy Moore's show it can work with careful planning, but the cautionary tales about overpayment nightmares are pretty sobering. For someone like me who's already started the application process - is it possible to pause or withdraw the application to give myself more time to think this through? I'm realizing I may have rushed into this decision without fully understanding the complexity involved. Thanks again to everyone for sharing such detailed, practical insights. This community knowledge is invaluable!