Social Security earnings limit before reaching FRA in May - does retirement income count?

For the months before you reach FRA in 2025, the earnings limit is $22,320 per year (or $1,860 per month). The good news is that only wages from actual work count toward this limit - your pension does NOT count! So you can receive your full $1,500 pension without it affecting your Social Security benefits. However, your $2,200 monthly work income DOES count and will be approximately $8,800 total from January-April, which is under the limit. Once you reach your FRA in May, you can earn unlimited income with no reduction to your benefits. I went through this last year and called the SSA directly to confirm using Claimyr (claimyr.com) to bypass the hold times. They have a video demo at https://youtu.be/Z-BRbJw3puU showing how it works. Saved me hours of waiting!

ur brother in law is WRONG, pensions dont count, only EARNINGS from ACTUAL WORK count!! i made this mistake 2 years ago and panicked for nothing lol

Just to add a technical clarification: The Social Security Administration only counts "earned income" toward the annual earnings test limit. This includes wages, salaries, bonuses, commissions, and net earnings if you're self-employed. These do NOT count toward the earnings limit: - Pension payments - Annuities - Investment income - Interest - Veterans or other government benefits - IRA distributions Also important: In your "grace year" (year you reach FRA), SSA only counts earnings in months BEFORE your FRA month. And they use a higher limit for that partial year ($56,520 for 2025). Finally, if you do exceed the limit, they don't take away your whole benefit - they withhold $1 in benefits for every $2 you earn above the limit before FRA, and $1 for every $3 above the limit in your grace year.

I went through this exact situation last year when I turned my FRA in August! Trust me, pension income definitely doesn't count - only your actual work earnings matter. But here's something nobody mentioned yet: if you DO go over the limit in those months before FRA, Social Security doesn't just take the money and run. They'll eventually recalculate and potentially increase your benefit amount to account for those months they withheld benefits. They explained it to me as a "special recalculation" that happens automatically. Not that you'll need it since you're under the limit, but good to know!

I see a lot of good info here already, but there's one more thing to consider: how you're planning to file. If you're applying for benefits right when you reach FRA in May, remember that benefits are paid in arrears (your May benefit would arrive in June). You should apply about 3 months before you want benefits to start to ensure timely processing. Also, when you apply, make sure to be clear about your expected earnings for 2025. SSA may withhold some benefits based on your estimate and then adjust later if needed. Many people struggle to reach SSA by phone to get these details sorted. I recommend checking out the Claimyr service if you can't get through - I used it to reach an agent in about 10 minutes instead of waiting hours.

All this FRA and earning limit stuff is why I just waited until I fully stopped working to claim SS!!! The rules are IMPOSSIBLE to understand and I was terrified of messing up and owing them money later. SSA is the WORST at explaining their own rules clearly!!! 😡😡😡

My sister just went through this! Very important - make sure you tell Social Security your EXACT planned retirement date when you apply. She told them she'd work until June but then decided to quit in February, and didn't notify them. They kept withholding benefits based on her original income estimate and it took months to fix. Just keep SSA updated on any changes to your work plans!