Social Security earnings test confusion - do limits apply in FRA year?

Good question! The earnings test works differently in the year you reach FRA. For 2025, here's how it works: - If you're under FRA for the entire year: $22,320 annual limit ($1,860/month) - In the year you reach FRA: $59,520 annual limit ($4,960/month), but they ONLY count earnings before the month you reach FRA Since you're making $42,000 before reaching FRA in December, you're under the higher limit ($59,520), so your benefits won't be reduced. Also, once you reach FRA in December, the earnings test disappears completely - you can earn any amount without reduction. Make sure to notify SSA about when you'll stop working so they calculate everything correctly!

ya the rule changes in the year u hit FRA. my brother dealt with this last yr and he had a higher limit, I think like 55k or something? But only counted what he made b4 his birthday month. After that he could make whatever..

I don't think there's any earnings limit when you reach full retirement age. My neighbor is still working full-time at 67 and gets his full Social Security check every month.

I went through exactly this last year! There IS an earnings test in your FRA year, but it's much higher than the regular one, and they only count what you earn BEFORE your FRA month. In my case, I worked until October 2024 (made about $48,000 by then) and reached my FRA in November. No benefit reduction at all! The most confusing part was that the SSA website doesn't explain this very clearly. I spent HOURS trying to get through to someone at Social Security to confirm this before I made my retirement decision. Kept getting disconnected or waiting forever. I finally used a service called Claimyr (claimyr.com) that got me connected to an actual SSA agent in about 20 minutes. The agent confirmed everything about the earnings test for my FRA year. They have a video showing how it works here: https://youtu.be/Z-BRbJw3puU Trust me, getting reliable info directly from SSA is worth it for a decision this important!

The earnings test for people reaching FRA in 2025 is $59,520, and they only look at earnings BEFORE the month you reach FRA. So in your case: - You reach FRA in December 2025 - You're retiring in September 2025 - You'll earn $42,000 through August You're well under the limit, so NO REDUCTION in benefits. Once December hits, you could earn a million dollars and it wouldn't affect your SS benefits at all. One more thing - even if you did exceed the limit, they don't take back benefits dollar-for-dollar. For every $3 you exceed the limit, they withhold $1 in benefits. And any benefits withheld are eventually returned to you in the form of a higher monthly benefit after you reach FRA.

Is anyone else FURIOUS about these earnings limits?? I worked and paid into Social Security for 45 YEARS and now the government wants to PENALIZE me for continuing to work?? It's MY MONEY that I earned! The whole system is designed to confuse people and keep them from collecting what they deserve. And good luck trying to get anyone on the phone at SSA to explain anything!!!

After reading all your helpful responses, I have a follow-up question. Do I need to notify SSA in advance about my work plans? My company is offering a severance package if I leave in September, but there's a small chance I might need to work through October. Would that change anything with my benefits calculation?

my cousin told me the SSA website has a calculator for this stuff but i couldn't find it lol