Social Security earnings limit when turning 65 in 2025 - Will working January-May affect my benefits?

You will definitely get penalized for earning money from January through May even though you aren't collecting benefits yet!!! The SSA looks at your WHOLE YEAR earnings when you're under FRA, not just the months you're collecting. And with $28,500 you're already over the annual limit which is probably around $22,000 in 2025. They'll withhold $1 for every $2 you earn over the limit. TRUST ME, I learned this the hard way and had to pay back thousands!!!

The previous comment isn't quite right. What matters is the income you earn in the months AFTER you start receiving benefits. SSA applies something called the Monthly Earnings Test in the first year you retire. If you work January-May but start benefits in June, SSA will only count earnings from June-December when applying the earnings limit. As long as you're truly retired and don't earn above the monthly limit (which would be the annual limit divided by 12) in any month after you start benefits, your pre-retirement earnings won't count against you. Check out SSA's rules on "Special Earnings Limit Rule" or "First Year Rule" for details.

My neighbor going threw the same thing but he was working part tome after he got his bennifets and they took money anyway even tho he told them he retired so don't trust what they say because they will take it back later and you'll be in a mess trying to pay them back

I went through this exact situation in 2023. Here's what you need to know: 1. When you file for benefits, tell SSA that you'll be retiring in June 2025 (assuming that's your birth month) 2. SSA will apply the "Monthly Earnings Test" instead of the annual test in your first year 3. Your January-May earnings won't count against you AS LONG AS you don't earn over the monthly limit in any month from June-December 4. The monthly limit for 2025 will likely be around $1,840 (annual limit divided by 12) 5. If you do any work after May, make sure you stay under that monthly amount This is called the "Grace Year" provision, and it's specifically designed for situations like yours where you retire mid-year.

i had this same worry last year lol! just make sure you tell them when you file that you RETIRED in june. if you don't use the word "retired" they might not apply the monthly test. also keep your last paystubs from work to prove when you stopped if they ever question it later

Has anyone actually tried calling the SSA to get a straight answer on this? I've been trying for WEEKS to speak to someone about my benefits and it's impossible to get through! Every time I call, I'm on hold for an hour and then get disconnected. The closest office is 50 miles away and they're only taking appointments. This system is broken beyond belief.

One more thing I forgot to mention - if you DO get hit with an overpayment because of the earnings test, you can request a "waiver of overpayment recovery" if it wasn't your fault and paying it back would cause financial hardship. I had to do this when they came after me for $3,800. Form SSA-632 is what you need.

Just to clarify one more thing - the monthly earnings limit only applies to the first year you receive benefits. In 2026 and beyond, they'll use the annual test until you reach your full retirement age of 67. Also, remember that the earnings limit only applies to wages and self-employment income. It doesn't count pensions, investments, interest, annuities, capital gains or other government benefits. And once you hit your FRA, there's no earnings limit at all.