Social Security earnings limit question - working at 64 while collecting SS benefits
I'm turning 64 next month and have been going back and forth about retirement. My job is physically demanding (construction management) and I'm starting to feel it, but I still enjoy the work. I'm thinking about starting my Social Security benefits NOW while I'm still working, then fully retiring at the end of December. My concern is the earnings limit - I heard there's a $23,400 limit this year? I'll definitely earn more than that between now and December (about $55,000 more). Will I lose all my Social Security payments for the year or just some of them? Also, if I wait until January to start benefits instead (after I've retired), would that be better? This whole system is confusing me!
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Miguel Ramos
The earnings limit for 2025 is indeed $23,400 if you're under Full Retirement Age (FRA) for the whole year. Since you're 64, you're under FRA. For every $2 you earn above that limit, SSA will withhold $1 from your benefits. So you won't lose all benefits, but a significant portion will be withheld. For example, if you earn $55,000 over the limit, they'll withhold $27,500 from your benefits. If your monthly benefit is less than that total, you might not receive any payments this year. Waiting until January when you're no longer working is probably the smarter move financially.
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Ava Martinez
•Thanks for breaking it down! So they'd withhold $27,500... that's MORE than I'd get in SS benefits for the rest of this year! So basically I'd get nothing if I apply now? That seems crazy. I guess waiting until January makes more sense.
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QuantumQuasar
im in the same boat kinda. started SS at 63 last year but still working part time at Home Depot. just be sure your keeping track of your earnings. they dont exactly monitor it monthly, they find out at tax time and then they want it ALL back at once if you go over. happened to my brother and it was a disaster
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Zainab Omar
•This is excellent advice about tracking earnings. The SSA does indeed reconcile at tax time when they receive your W-2 information. If they determine you've been overpaid due to excess earnings, they'll send a notice requesting repayment, which can create significant financial hardship if unexpected. One clarification: for earnings over the limit, they withhold $1 for every $2 earned above the threshold, not the entire benefit amount. However, the withholding can indeed be substantial enough to eliminate benefits temporarily.
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Connor Gallagher
The year you reach Full Retirement Age (FRA), the earnings limit actually increases substantially (to about $61,800 for 2025), and they only withhold $1 for every $3 you earn over the limit. AND once you reach your FRA month, there's NO earnings limit at all! So depending on when you reach your FRA, you might want to consider that timing. What month do you turn your full retirement age? That could change the strategy completely.
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Ava Martinez
•My FRA is 66 and 10 months according to my Social Security statement. So that's still more than 2 years away. Sounds like I need to just wait until I actually stop working in January.
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Yara Sayegh
My dad tried to do what ur doing and it was a MESS!!! social security overpaid him like crazy and then demanded the money back the next year. he already spent it and had to set up some payment plan. just wait til ur done working its way less headache!!!!!
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Keisha Johnson
I've been struggling with trying to reach SSA about a similar situation. Called 25+ times over 3 weeks and couldn't get through. Finally used a service called Claimyr (claimyr.com) that got me connected to an agent in under 10 minutes. They have a video showing how it works: https://youtu.be/Z-BRbJw3puU The agent I spoke with explained that if you're still working and will significantly exceed the earnings limit, it's often better to wait until you've stopped working or reduced hours. She said they can sometimes suspend benefits preemptively if you know you'll exceed the limit, which prevents overpayment issues later.
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Miguel Ramos
•That's a good point about asking SSA to suspend benefits preemptively. It's much easier than dealing with an overpayment notice later. And yes, getting through to SSA these days is nearly impossible without assistance.
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Paolo Longo
OMG the earnings limit is a SCAM!! The government takes OUR money all our lives then punishes us for working?? I hate this system so much. They should let us collect what WE EARNED regardless of if we're still working. Its OUR MONEY!!!!
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Zainab Omar
•While I understand your frustration, it's important to note that the earnings limit only applies before you reach your Full Retirement Age. After FRA, you can earn unlimited income without affecting your benefits. The earnings limit exists because Social Security was designed as retirement insurance, meant to replace income when you stop working. The good news is that any benefits withheld due to excess earnings aren't truly lost - once you reach FRA, your monthly benefit will be recalculated to credit you for the months benefits were withheld.
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Miguel Ramos
One thing no one has mentioned: even if you wait until January to apply, make sure you apply 2-3 months BEFORE you want benefits to begin. SSA processing times are extremely slow right now, and retroactive payments for retirement only go back 6 months maximum. Don't wait until January to start the application process.
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Ava Martinez
•That's really helpful advice! So if I want January benefits, I should apply in October or November? I didn't realize there was such a long processing time.
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Yara Sayegh
What about that thing where they increase ur benefit if they withhold some? My uncle said they recalculated his benefit when he hit retirement age and it went up because of the months they didn't pay him when he was working too much?? Anyone know about this?
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Zainab Omar
•Yes, that's correct! When benefits are withheld due to the earnings test, SSA will recalculate your benefit amount when you reach Full Retirement Age. They essentially give you credit for the months when benefits were withheld by removing the early retirement reduction for those months. This is a commonly overlooked aspect of the earnings limit - the money isn't permanently lost, but rather deferred with an adjustment at FRA. However, most financial advisors still suggest waiting to claim if you know you'll exceed the earnings limit significantly.
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Connor Gallagher
Based on everything shared here, it seems your best option is to: 1. Continue working through December 2. Apply for retirement benefits around October (for January start date) 3. Start benefits in January when you're no longer working This avoids the earnings limit issue entirely, prevents possible overpayments, and gives SSA enough processing time. Plus, waiting gives you a slightly higher benefit amount anyway due to delayed retirement credits.
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Ava Martinez
•Thank you everyone for all this advice! I'm definitely going to wait until January to start benefits, but apply in October like suggested. This has been incredibly helpful - way more useful than the confusing SSA website!
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