Social Security earnings limit confusion - when to receive first SS check after retirement at 65?

This is actually a really important question about the earnings test! You're right to be careful here. If you stop working in June 2025, you can receive your FIRST benefit payment in July 2025. Social Security pays benefits for the previous month (so July's payment is actually for June). Since you'll be under FRA (Full Retirement Age) for all of 2025, you'll be subject to the annual earnings test. For 2025, you'll need to stay under the annual limit for the months you're receiving benefits. Social Security will prorate that annual limit based on how many months of the year you're receiving benefits. The key thing is the "grace year" rule - in your first year of retirement, Social Security will pay a full benefit for any month you earn under the monthly limit OR don't perform substantial services in self-employment, regardless of your total annual earnings.

I went thru this last yr. u need 2 be careful about when u APPLY versus when u get paid. i applied in april but didnt want benefits til june but they started them in may!! ended up with a small overpayment i had to deal with. make sure u tell them EXACTLY when u want benefits 2 begin, not just when ur quitting.

The monthly earnings test applies in your first year of retirement. For 2025, the monthly limit will likely be around $1,900 (it's $1,770 for 2023 with annual increases). If you stop working completely in June, you can receive benefits for July onward without penalty. However, here's the important part: You need to APPLY about 3 months before you want benefits to begin. So if you want your first payment in July (which pays for June), you should apply in April. Also, be very specific when you apply about which month you want as your first month of entitlement. Some people accidentally get benefits earlier than they intended, which can create overpayments if you're still working.

Yes, that's exactly right. And make sure you specify June as your "month of entitlement" not just your "first payment month" since those are different in SSA terminology. The month of entitlement is what matters for the earnings test.

BEWARE!!! Even if you do everything right and tell them the exact month you want benefits to start, SSA makes MISTAKES ALL THE TIME!!!! I clearly told them I wanted benefits starting October but they started them in September when I was still working and then hit me with an overpayment notice 6 months later for $3,800!!!! It took FOREVER to get it straightened out and they still took some of my money!!! Check your award letter VERY CAREFULLY when you get it!!!

They eventually reduced it after I filed an appeal but I still had to pay back about $2,200. The worst part was how long it took - almost 8 months of stress and calling and getting nowhere. They kept saying someone would call me back but NOBODY EVER DID!!!! Total nightmare.

I had similar issues contacting SSA about my retirement application last year. After weeks of trying to get through on the phone, I discovered Claimyr.com which got me connected to an actual SSA agent in under 10 minutes. They make a reservation for you in the SSA phone system and call when it's your turn. Saved me hours of hold time and frustration. They have a video showing how it works here: https://youtu.be/Z-BRbJw3puU For your specific question - definitely specify the exact month you want benefits to begin (June) and get confirmation from the SSA rep. I'd recommend getting the badge number of whoever you speak with too, just in case there are issues later.

just wanna add that the earnings test is different if ur turning FRA during the year. is ur FRA 66 and a few months? if u turn FRA in 2025 then u get a higher earnings limit for the months before ur birthday month. might be worth checking exactly when ur FRA is.

My husband retired at 65 last year and we found out that they count GROSS earnings, not NET! He had a huge vacation payout in his final check and that counted toward the earnings test even though he wasn't actually working those days. Just something to watch out for when you calculate your earnings for the months you worked!

One final important point: If you do exceed the earnings limit, SSA withholds benefits at the rate of $1 for every $2 you earn above the limit. However, they don't take a little from each check - they withhold FULL MONTHS of benefits until the penalty amount is satisfied. For example, if your monthly benefit is $2,500 and you exceed the annual limit by $3,000, they would withhold 2 full months of benefits ($5,000) to cover the $3,000 penalty, and you'd still be due $2,000 that they would pay back to you. This is why it's crucial to be very specific about which month you want as your first month of entitlement, and to keep track of your earnings for the year.

dont 4get that if u get benefits reduced cuz of working, they recalculate ur benefit when u hit FRA and give u credit for those months. so its not completely lost money, just delayed