Social Security earnings limit confusion - annual vs monthly limits when retiring at 65 in 2026

Yes, that's basically correct. The SSA applies two different earnings tests depending on your situation: 1) The annual earnings test - applies to most people 2) The monthly earnings test - only applies in your first year of retirement Since your wife is starting benefits on January 1, 2026, the annual earnings test would apply for the full year. For 2025, the limit is $23,400 for someone under FRA for the whole year (and will likely increase for 2026). If she exceeds the annual limit, SSA will withhold $1 in benefits for every $2 she earns above the limit. But they don't necessarily switch to the monthly test as you described - that's only if you retire mid-year. She should definitely track her earnings carefully and plan her work schedule to stay under the annual limit if possible.

The SSA rep gave you WRONG information!!! I went through this EXACT situation with my husband last year. When you start benefits on January 1st, ONLY the annual test applies - period. There is NO "switching" to a monthly test if you exceed the annual limit!!! The monthly earnings test ONLY applies in the calendar year when you first retire mid-year. Since your wife is starting on Jan 1, 2026, only the annual limit matters. Trust me, I learned this the hard way. Call back and speak to a different rep!!

my father in law had this same issue!! he went over by like $600 and they took away THREE MONTHS of benefits!! totally unfair system if u ask me. make sure she watches those earnings like a hawk

It sounds like there's some confusion here, both from the SSA rep and potentially in your understanding. For someone starting benefits on January 1, 2026: - Annual earnings test applies for all of 2026 - Monthly test does NOT come into play at any point that year - For 2026, she can earn up to the annual limit (probably around $24,500-25,000) - If she goes over, they withhold $1 for every $2 over the limit I suspect what the rep might have been trying to explain is that they don't just reduce your annual benefit by a percentage - they actually withhold entire monthly payments until they've covered the amount that needs to be withheld. This often confuses people.

Good luck getting clear answers from SS! I spent 3 weeks trying to reach someone about earnings limits. Kept getting disconnected or waiting 2+ hours only to be transferred and disconnected again. Finally used that Claimyr service (claimyr.com) someone on this forum recommended. They got me connected to an actual SSA agent in 20 minutes! The video demo showed exactly how it works: https://youtu.be/Z-BRbJw3puU. Total lifesaver when you need to clarify complicated rules like this.

To summarize the correct information for everyone's benefit: 1) For someone starting benefits on January 1st: ONLY the annual earnings test applies for that entire year. 2) For 2025, the earnings limit for someone under FRA the whole year is $23,400 (will likely increase for 2026). 3) If earnings exceed the annual limit, SSA withholds $1 in benefits for every $2 earned over the limit. 4) SSA typically withholds full monthly payments, not partial ones, until they've withheld the required amount. 5) The monthly earnings test only applies in the calendar year a person retires mid-year. The OP's wife should carefully track her earnings throughout 2026 and stop working once she approaches the annual limit to avoid benefit reductions.

One thing I haven't seen mentioned yet that might be relevant to your wife's situation: the earnings limit increases substantially in the year you reach full retirement age, and only earnings before the month you reach FRA count. For example, in 2025: - If you're under FRA the whole year: $23,400 annual limit - In the year you reach FRA: $62,760 annual limit, but only counting earnings before the month you reach FRA - Month you reach FRA and beyond: No earnings limit at all So depending on when your wife reaches FRA, this could significantly impact her planning. If she turns 67 (her FRA) in 2028, she'll have a much higher limit that year and only earnings from January through the month before her birthday would count.

Also remember that any benefits withheld due to the earnings test aren't lost forever! When your wife reaches FRA, her benefit amount will be recalculated to give credit for months when benefits were withheld. Most people don't realize this part!

Just want to add one more important point that could affect your wife's situation: make sure she understands what counts as "earnings" for the earnings test. Only wages from employment and net self-employment income count - things like pensions, 401k withdrawals, investment income, rental income, etc. don't count toward the limit. Since you mentioned she does seasonal work, if she's an employee (gets a W-2), all those wages count. But if she's self-employed or an independent contractor, only her net earnings after business expenses would count toward the limit. This distinction could make a big difference in her planning, especially if she has any business expenses related to her seasonal work. Also, the earnings are counted when earned, not when paid. So if she earns money in December 2026 but doesn't get paid until January 2027, it still counts toward her 2026 earnings limit.

This is such a helpful thread! As someone who's been navigating Social Security benefits for my own family, I wanted to add one more consideration that might be useful for your wife's planning. Since she's doing seasonal work for about 4 months per year earning $6,000-$7,500 monthly, that puts her right at the edge of the annual earnings limit (assuming it stays around $24,500-$25,000 for 2026). One strategy that has worked for others in similar situations is to carefully time when the work is performed each year. For example, if she could shift some of her seasonal work to early in the year when she reaches FRA (2028), she could potentially earn more in those months since only earnings before her FRA birthday month would count against the much higher limit ($62,760 in 2025, likely higher by 2028). Also, I'd definitely recommend getting that earnings limit clarification in writing from SSA - either through their online portal or by requesting a written explanation. Given the confusion you experienced with the first rep, having it documented could save headaches later if there are any disputes about benefit calculations. The fact that withheld benefits aren't permanently lost (as others mentioned) does provide some peace of mind, but careful planning upfront is still the best approach to avoid cash flow issues from temporary benefit suspensions.

For the specific SSA publication, you'll want to look at Publication No. 05-10069 "How Work Affects Your Benefits" - this is the official guide that covers all the earnings limit rules. You can find it on the SSA website at ssa.gov/pubs/ or request a physical copy. Also, when you call back to get clarification, ask them to reference the specific sections in the Program Operations Manual System (POMS) that apply to your wife's situation. The relevant sections are RS 02501.001 for annual earnings test and RS 02501.020 for monthly earnings test. Having these reference numbers will help ensure you're getting consistent information from different reps. One more tip: if you create a my Social Security account online, you can send secure messages to SSA with your questions and get written responses back. This creates a paper trail and often results in more thoughtful, accurate answers since the reps have time to research before responding.

I just want to echo what others have said about getting this information in writing! I had a similar experience with conflicting information from different SSA reps about earnings limits. One thing that really helped me was calling the SSA's technical expert line (you have to ask to be transferred to a "technical expert" when you call the main number). These are more experienced reps who specialize in complex benefit calculations. They were able to walk me through the exact same scenario and confirmed that for someone starting benefits on January 1st, only the annual earnings test applies for that entire year - no switching between tests. Also, just to reinforce what others mentioned about the benefit recalculation at FRA - while it's true that withheld benefits aren't permanently lost, the timing of when you get that value back matters for cash flow planning. The recalculation happens automatically when you reach FRA, but it comes as a slightly higher monthly payment for life rather than a lump sum of what was withheld. So it's still worth planning carefully to avoid benefit suspensions if possible, especially if you're counting on that monthly income. Your wife's seasonal work schedule actually puts her in a good position to control her annual earnings - just make sure she tracks them carefully throughout the year!

I wanted to add something that might be helpful for your wife's specific situation with seasonal work - since she's earning $6,000-$7,500 monthly for about 4 months, that puts her total annual earnings right around $24,000-$30,000, which could be close to or over the annual limit. One strategy I've seen work well for people in similar seasonal situations is to negotiate with the employer (if possible) to spread some of the earnings into the following year. For example, if she usually works March-June, she might consider working February-May instead, or asking if some December payments could be delayed until January of the following year. Since earnings are counted when earned (not when paid), the timing of when the work is actually performed matters. This could help her stay under the annual limit in years when she's subject to the earnings test (2026-2027), and then she could potentially earn more in early 2028 before reaching her FRA. Also, make sure she keeps detailed records of her work dates and earnings - if there's ever a question about which year certain earnings should count toward, having documentation will be invaluable. The technical expert line that Natasha mentioned is definitely your best bet for getting accurate information. Regular SSA reps often get confused about the nuances between annual and monthly earnings tests.

I've been following this thread with great interest since I'm in a very similar situation - planning to start Social Security at 65 while continuing some part-time work. The confusion about annual vs monthly earnings tests that you experienced with the SSA rep is unfortunately pretty common. Based on everything discussed here, it seems clear that since your wife is starting benefits on January 1, 2026, only the annual earnings test will apply for that entire year. The monthly test is specifically for people who retire mid-year in their first year of benefits. One additional consideration for your wife's seasonal work situation: since she's earning in that $6,000-$7,500 monthly range for 4 months, she might want to consider whether any of that work could potentially qualify as self-employment rather than regular employment. If she has any business expenses related to her seasonal work (transportation, supplies, etc.), those could be deducted from her earnings for Social Security purposes if she's classified as an independent contractor rather than an employee. This could potentially help her stay under the annual earnings limit. Just make sure to consult with a tax professional about the implications, since there are trade-offs between employee vs contractor status. The advice about getting everything in writing and using the technical expert line is spot-on. Good luck navigating this - it sounds like you're asking all the right questions!

I've been reading through this entire discussion and it's been incredibly enlightening! As someone who's also approaching Social Security decisions, I wanted to thank everyone for the detailed explanations and practical advice. What strikes me most is how much misinformation there seems to be, even from SSA reps themselves. The fact that the original poster got told about "switching" between annual and monthly tests when starting benefits on January 1st is concerning - that's just not how the system works. For anyone else following this thread, I think the key takeaways are: 1. Starting benefits January 1st = annual earnings test only for that entire year 2. Monthly test only applies when retiring mid-year in your first year of benefits 3. Get everything in writing and ask for technical experts when calling SSA 4. The timing of when work is performed (not paid) matters for earnings calculations 5. Track everything carefully and consider strategic timing of seasonal work The advice about Publication No. 05-10069 and those POMS reference numbers is gold - having those specific citations should help avoid the confusion that seems to plague regular SSA customer service calls. Lucas, I hope you and your wife are able to get this sorted out with confidence now. With all the strategies discussed here for timing her seasonal work and staying under the annual limit, it sounds like she should be able to make this work well!

As someone who's been helping family members navigate Social Security for years, I wanted to add a few practical tips that might help with your wife's situation: First, consider setting up a simple spreadsheet to track her monthly earnings throughout 2026. Since she's doing seasonal work earning $6,000-$7,500 monthly for about 4 months, having a running total will help you both stay aware of where she stands relative to the annual limit. Second, if her seasonal work allows any flexibility in scheduling, you might want to plan conservatively for her first year (2026) to avoid any benefit withholding while you're both getting comfortable with the system. Then in 2027, once you've seen exactly how SSA handles her earnings reporting and benefit calculations, you could potentially be more aggressive about maximizing her earnings up to the limit. Finally, when you do call that technical expert line others mentioned, I'd suggest asking them to walk through a specific example with your wife's anticipated earnings amounts. Something like "If she earns exactly $25,000 in 2026 when the limit is $24,500, what exactly happens to her benefits and when?" Getting concrete scenarios explained can be much clearer than general rule explanations. The community advice here has been excellent - you're definitely on the right track now!

This entire thread has been incredibly educational! As someone who's just starting to research Social Security strategies, I had no idea about the complexity around earnings limits and how the timing of when you start benefits affects which test applies. The confusion with the SSA rep that Lucas experienced really highlights why this community is so valuable - getting multiple perspectives and having people share their actual experiences helps cut through the misinformation. It's concerning that even SSA representatives sometimes give incorrect information about something so fundamental. I'm taking notes on all the resources mentioned here - Publication No. 05-10069, the POMS references, the technical expert line, and especially the advice about getting everything in writing. The strategic timing considerations for seasonal work are fascinating too - I never would have thought about how shifting work dates by even a month could impact earnings test calculations. For anyone else reading this thread later, it seems like the key lesson is: if you're starting Social Security benefits on January 1st of any year, only the annual earnings test applies for that entire year. There's no "switching" to monthly limits as the original SSA rep suggested. The monthly test is specifically for people who retire mid-year in their first year of benefits. Thanks to everyone who shared their knowledge and experiences - this is exactly the kind of community support that makes navigating these complex decisions less overwhelming!

Reading through this entire discussion has been incredibly helpful! As someone who will be facing a similar decision in the next few years, I really appreciate how the community came together to clarify what was clearly a confusing situation with conflicting information from SSA. The key point that keeps coming up - and seems to be the source of the original confusion - is that starting benefits on January 1st means ONLY the annual earnings test applies for that entire year. No switching between tests, no monthly limits coming into play. It's that simple, but apparently not well understood even by some SSA reps. What I find most valuable are the practical strategies discussed here: tracking earnings with a spreadsheet, timing seasonal work strategically, getting specific dollar examples from technical experts, and having everything documented in writing. These are the kinds of real-world tips that make the difference between successfully navigating the system and getting caught off guard by unexpected benefit reductions. For Lucas and his wife's situation specifically, it sounds like her seasonal work pattern ($6K-7.5K monthly for 4 months) puts her right at the edge of the annual limit, so careful planning and tracking will be essential. But with all the strategies outlined in this thread, she should be able to manage her earnings effectively while maximizing her work opportunities. Thanks to everyone who shared their experiences and expertise - this is exactly why community forums like this are so valuable for navigating complex government programs!

This has been such an informative discussion! As someone who's been researching Social Security strategies for my own upcoming retirement, I wanted to add one more resource that might be helpful for getting accurate information. In addition to the technical expert line that several people mentioned, SSA also has local field offices where you can schedule in-person appointments. Sometimes having a face-to-face conversation with a knowledgeable representative can help clear up complex scenarios like this one. You can use the SSA office locator on their website to find the nearest location. The advantage of an in-person meeting is that you can bring all your documentation, ask follow-up questions immediately, and get written notes or printouts to take home. Plus, the field office staff often have more experience with complex earnings limit scenarios than the general phone representatives. Given all the confusion your wife experienced with that initial phone call, it might be worth scheduling an appointment to go over her specific situation in detail. You could bring a list of questions based on all the great advice in this thread, and make sure you leave with clear, documented answers about how the annual earnings test will apply to her 2026 benefits. The seasonal work timing strategies discussed here are excellent - having an SSA representative confirm those details in person could give you both extra confidence in your planning!

As someone who's been helping seniors with Social Security issues for several years through volunteer work, I wanted to jump in and confirm what many others have said here - the SSA rep definitely gave you incorrect information about "switching" between tests. When your wife starts benefits on January 1, 2026, she'll be subject to ONLY the annual earnings test for the entire year. There's absolutely no switching to monthly limits if she exceeds the annual threshold. The monthly earnings test is exclusively for people who retire mid-year during their first year of benefits. What likely happened is the rep confused how SSA actually withholds the excess benefits (they typically withhold entire monthly payments rather than partial payments) with switching between different earnings tests. It's an unfortunately common mix-up that I've seen confuse many people. Given her seasonal work earning $6,000-$7,500 monthly for 4 months, she'll definitely want to track her total carefully against that annual limit (likely around $25,000 for 2026). The timing strategies others mentioned about when work is actually performed versus when payment is received could be really valuable for her situation. I'd strongly recommend calling back and specifically asking for a technical expert to avoid getting conflicting information again. Good luck with your planning!

This thread has been incredibly enlightening! As someone who's just starting to research Social Security benefits for my own future planning, I had no idea how complex these earnings limit rules could be or how much misinformation seems to circulate - even from official sources. The key takeaway that keeps resonating is crystal clear now: if you start Social Security benefits on January 1st of any year, ONLY the annual earnings test applies for that entire year. There's no mysterious "switching" to monthly limits as that first SSA rep incorrectly suggested. The monthly test is exclusively for mid-year retirees in their first year of benefits. What I find most valuable are all the practical strategies shared here - from tracking earnings with spreadsheets to timing seasonal work strategically, asking for technical experts instead of regular phone reps, and getting everything documented in writing. These real-world tips could make the difference between smooth benefit management and unexpected complications. For newcomers like me who are years away from these decisions, this discussion serves as a perfect example of why doing thorough research and getting multiple sources of information is so critical. One incorrect phone call could have led to major planning mistakes! Thanks to everyone who shared their expertise and experiences - this community knowledge is invaluable for navigating these complex government programs.