Social Security earnings limit confusion - will 2025 pre-retirement income count against survivor benefits?

Good news! In your first year of collecting benefits, SSA applies a 'Monthly Earnings Test' instead of the annual one. So they'll only count earnings from September-December after you start collecting. However, you still need to stay under $1,960 per month ($23,520÷12) for those months to avoid benefit reductions. Any month you earn over that threshold, you won't receive a survivor benefit for that month. When you switch to your own retirement benefits at FRA or later, the earnings test no longer applies - you can earn unlimited income without benefit reductions.

My hubby had same situation, we didnt know about monthly thing and SSA ended up taking back $4200 in benefits next year. MAKE SURE u tell them exactly when u retire so they use monthly test!!!!

The Monthly Earnings Test for your first year is critical in your situation. Here are some key points to remember: 1. You must specify to SSA that you are RETIRING in September when you apply for survivor benefits. 2. For September-December, you're subject to the monthly limit ($1,960 in 2025). 3. For any month you exceed that limit, you'll lose the entire benefit for THAT month only. 4. Starting January 2026, they'll switch to the annual test until you reach your Full Retirement Age. 5. The earnings test for survivor benefits works exactly the same as for retirement benefits. One important strategy: consider working more hours in the months BEFORE you start benefits, then strictly maintain your earnings under the monthly limit afterward. Also, remember that only wages and self-employment count - investment income, pensions, etc. don't count toward the earnings test.

The whole SS earnings limit system is RIGGED to punish people who work!! I had to deal with this garbage when I got widow benefits at 61. They took back almost half of what I got because of some overtime I worked - no warning whatsoever. Then I spent 5 MONTHS trying to get someone at SSA to explain the overpayment notice. They'll cut your benefits AND make it impossible to talk to anyone about it. Complete bureaucratic nightmare.

I retired at 63 last year and takng my own benefits. Nobody told me about this montly test thing for first year. I just asumed the yearly limit applied. Now im getting my benefits cut each month because i earned too much early in the year before i even started collecting! wish id known about this sooner :

One thing that's often overlooked in this scenario is that you're making a smart move by taking survivor benefits first and switching to your own later. That's exactly what I did. Just remember that when you do switch to your own retirement benefits at 67 or 70, you need to APPLY for that switch - it doesn't happen automatically. And keep good records of all your earnings and any communications with SSA.

To address your follow-up questions: 1. When you apply for survivor benefits, there's a section where you indicate your last day of work or that you're reducing to part-time below the limit. Make sure this is clearly documented. 2. For the switch to your own benefits later - you should apply about 3-4 months before you want the switch to occur. It's form SSA-10 for survivor benefits and then SSA-1 for retirement later. 3. For income reporting, you'll provide an estimate of your expected earnings when you apply. If your situation changes, you should proactively report changes to SSA rather than waiting for them to discover it later. 4. Keep in mind that after your first year (2025), in 2026 they'll use the annual earnings test until you reach your FRA. So your earnings January-December 2026 will all count, and benefits will be withheld $1 for every $2 you earn above the limit.

Watch out for how they define 'earnings' too!!!! My frend had some vacation pay and sick time paid out when she left her job and SSA counted that toward her earnings limit even though it was bascially savings she had built up. Make sure u ask about that if ur getting any kind of separation pay or unused PTO payout!

Let me clarify a few final points that might help you: 1. For the monthly test to apply, you need to be a "retired" beneficiary, which means having monthly earnings below the limit ($1,960 for 2025). 2. If you work in September making over $1,960, you won't get benefits for September, but could still get them for October-December if you stay under the limit those months. 3. The earnings limits adjust annually with inflation, so the 2026 limit will likely be higher than 2025's $23,500. 4. When you eventually switch to your own retirement benefits at FRA or later, the earnings test disappears completely - that's often overlooked but very valuable. The survivor-to-retirement switch strategy you're using is one of the smartest approaches for maximizing lifetime benefits, so kudos for planning ahead!

Just wanted to add one more important detail that hasn't been mentioned yet - when you do make the switch from survivor benefits to your own retirement benefits at 67 or 70, you'll want to time it carefully based on your birthday month. If you're switching at your FRA (67), you can receive both benefits for the month you turn 67, then your own higher benefit going forward. But if you're waiting until 70, you'll continue getting survivor benefits until the month you turn 70, then switch to your own maximized benefit. Also, keep all your W-2s and pay stubs from your working months in 2025 - SSA may ask for documentation later to verify your earnings were properly calculated under the monthly test. Having everything organized will make any future interactions much smoother!

Great question! I went through something very similar when I started collecting survivor benefits at 62. The key thing to remember is that SSA will ask you during your application whether you plan to work and what your expected monthly earnings will be after you start collecting benefits. When you tell them you're retiring in August and starting benefits in September, they should automatically apply the Monthly Earnings Test for your first year. But here's what I learned the hard way - don't just assume they'll do it correctly. After you apply, call them back about a month later to confirm they have you coded as "retired" and using the monthly test rather than the annual test. Also, since you mentioned you're still deciding between claiming your own benefits at 67 vs 70 - I'd recommend running the numbers on both scenarios. The survivor benefit might be higher than your own benefit even at 70 if your husband had significantly higher earnings. You can switch back and forth between survivor and your own retirement benefits to always take whichever is higher, but you can only make that election once per benefit type. The earnings limit confusion is real - the SSA website definitely could be clearer about these nuances!