Social Security earnings limit - can I stay at my job after filing and just watch my income?

The earnings test is actually administered both ways - annually and monthly. For the annual test, SSA looks at your total earnings for the year and reduces benefits accordingly ($1 reduction for every $2 over the limit). However, there's also a monthly grace period provision for the first year you retire. If you have a month where you don't earn more than the monthly limit (annual limit divided by 12) AND you've substantially stopped working, you'll receive benefits for that month regardless of your annual earnings. So in your scenario, you could work January through March earning your regular salary, then stop working completely, and potentially get full benefits for April-December. The key is that you must actually retire (substantially stop working) - you can't just reduce hours at the same job.

SSA doesnt care HOW you earn the money, just that you do. they take $1 for every $2 you earn over the limit. i tried to game the system a couple years ago...didn't work out well for me 😠 ended up with a $4,600 overpayment notice the next year because i didnt understand how it worked!!!!! total disaster

The monthly earnings test is specifically designed for situations like yours in the first year you retire. It's called the Monthly Earnings Test Grace Year provision. Here's how it works: 1. In your first year of retirement, you can receive a full SS benefit for any month you earn below the monthly limit ($1,770 in your 2026 example) AND you don't perform substantial services in self-employment. 2. This applies regardless of your total annual earnings. 3. After that first calendar year, only the annual test applies. So yes, you could work January-March at your full salary, then fully retire, and still receive benefits for the remaining months. The key is fully retiring from that employer - reduced hours won't qualify. This isn't a loophole - it's an intentional provision to help people transition to retirement.

When I took social security at 63 I had no idea about the earings limit thing and wound up having to pay back almost all my benefits that first year!! just be relly careful they don't warn you about this stuff

Since no one's mentioned it yet - the annual earnings limit for someone your age will be significantly higher than $21,240 by 2026. It increases with inflation each year. In 2025, it's $22,320 for those under FRA. By 2026, it could be around $23,000+. Also, keep in mind that only certain types of income count toward the earnings test. Generally, only wages from employment or net earnings from self-employment count. Investment income, pension payments, government benefits, and annuities don't count toward the limit. Lastly, if you're planning this far ahead, have you considered whether filing early is the best strategy for you financially? Filing at 63 means permanently reduced benefits (about 25% less than waiting until your FRA).

have u tried calling SSA to ask them directly?? when i was figuring out my retirement i spent HOURS trying to get someone on the phone. kept getting disconnected or waiting forever.

My husband and I just went through this! What we found out is that if you make too much, they don't just reduce your benefits - they stop them completely until they've withheld enough to cover the excess earnings. Then they start paying again. So if you earn way over the limit early in the year you might not see any SS payments until later in the year. Just something to be prepared for!

One more important thing to consider: while benefits are reduced if you earn over the limit before FRA, you actually get those reduced benefits back later. SSA recalculates your benefit amount when you reach FRA to account for months when benefits were withheld. So you're not permanently losing that money - it's more like a delay in receiving it. This is called the Adjustment to the Reduction Factor (ARF). The information in section 202(x) of the Social Security Handbook explains this recalculation. Your monthly benefit will increase starting at FRA to account for those months when you received reduced or no benefits due to excess earnings.