Social Security question: Start SS 5 months before FRA while still working - is $139/month reduction worth it?

Be careful! If you're under FRA and working, there are earnings limits. For 2025, if you earn more than $22,750 before reaching your FRA, SSA will deduct $1 in benefits for every $2 you earn above that limit. This could potentially eliminate your benefits entirely for those months depending on your income. Once you reach FRA in May, there's no earnings limit, so you can earn whatever you want without penalty. So whether this makes sense depends entirely on how much you're earning from January-May. What's your monthly income from work during that period?

I did something similar last year and REGRETTED it!!! The earnings limit bit me HARD. I didn't realize SS would withhold my ENTIRE benefit for several months until the "penalty" was paid back. The statements they send explaining it are SO confusing!!! Plus you're locking in that $139 reduction FOR LIFE. That adds up to $1,668 EVERY YEAR you collect benefits. After 20 years that's $33,360 you'll miss out on!!

With your income level, you'd definitely have benefits withheld due to the earnings test. Since you're earning $5,800 monthly ($29,000 total), you're $6,250 over the limit for that period. That means SSA would withhold approximately $3,125 in benefits (half of the amount over the limit). However, there's something important many people don't realize: When SSA withholds benefits before FRA due to earnings, they recalculate your benefit amount when you reach FRA to give you credit for those months. So the $139 reduction won't fully be permanent. Still, waiting until May seems like the cleanest approach in your situation.

To clarify: The reduction for filing early IS permanent. However, if benefits are withheld because you earn over the limit, SSA will recalculate your benefit when you reach FRA to account for those months when you didn't actually receive benefits. This partially offsets the early filing reduction. For example, if you file 5 months early but have all benefits withheld due to earnings, at FRA they'll adjust your benefit as if you filed 1-2 months early instead of 5 months early (the exact recalculation depends on several factors).

My neighbor tried getting both his paycheck and SS early like this and the whole thing turned into a NIGHTMARE. Social Security kept sending him confusing letters about overpayments and he spent MONTHS trying to get someone on the phone to explain everything. He said he would've just waited if he knew how complicated it would get!

Jus do the math. $139 × 5 months = $695 you'd get from filing early. But then ur benefits r $139 LESS EVERY MONTH FOREVER after that. So after just 5 months of collecting ur reduced benefit, ur at a loss. Simple math says wait.

My financial advisor told me something interesting - for every year you wait to collect SS after FRA (up to age 70), you get an 8% increase in benefits. So if your FRA is May 2025, waiting until May 2026 would give you 8% more for life! Something to think about if you can afford to wait even longer.

i think im the only 1 that actually filed early n was happy with it lol. i took mine 3 months b4 FRA and just stopped working completely. got a smaller check but started enjoying retirement sooner. no regrets!! sometimes the $$ isnt everything, time is valuable 2!

As someone who went through a similar decision last year, I'd strongly recommend waiting until May. I initially considered filing early while still working, but after running the numbers and talking to SSA, it became clear that the earnings test would likely wipe out most or all of my benefits anyway. The key thing to remember is that with your income level ($5,800/month), you're significantly over the earnings limit. Not only would you face benefit withholding, but you'd also be permanently reducing your monthly payment by $139 - which as others have pointed out, adds up to a substantial amount over time. I ended up waiting until my FRA and it was definitely the right call. No hassle with earnings tests, no reduced benefits, and no confusing paperwork from SSA about overpayments. Sometimes the simpler path really is the better one!