Social Security reduced benefits at 62 and part-time income limits - 2025 figures

the reduction is actually pretty big! i started collecting last year at 62 and i get 30% less than if i waited til my full retirement age (which is 67 for me). as for working, theres an earnings limit which is $22,320 for 2025 if ur under full retirement age. they take away $1 in benefits for every $2 you earn above that limit. its only earned income that counts not investments or rental income etc. they'll figure it all out when u file taxes

The exact reduction percentage depends on your specific Full Retirement Age (FRA). For people born in 1967 or later with an FRA of 67, claiming at 62 means approximately a 30% reduction in benefits. For those with an FRA of 66, it's about a 25% reduction. Regarding the earnings limit for 2025, the current annual limit is $22,320 if you're under FRA. Social Security will deduct $1 from your benefits for every $2 earned above that threshold. Importantly, only wages and self-employment income count toward this limit. Investment income, pension payments, annuities, and other government benefits don't count. In the year you reach your FRA, the rules become more favorable - higher earnings limit ($59,520 for 2025) and only $1 deducted for every $3 over the limit. Once you reach your FRA, there's no earnings limit at all. One thing many people don't realize: if benefits are withheld due to excess earnings, you'll receive credit for those months when you reach FRA, resulting in a higher monthly benefit going forward.

Omg I'm dealing with this exact situation right now and it's SO FRUSTRATING! I started collecting at 62 last year and didn't realize how little I'd actually get - it's barely enough to cover groceries! And then I tried to work part-time at my daughter's shop to make extra money and they reduced my payment even MORE! The whole system feels designed to punish people who need to work. And good luck trying to get anyone on the phone at Social Security to explain any of this. I've spent HOURS listening to hold music only to get disconnected. Has anyone found a way to actually talk to a real person there???

IMPORTANT: Don't just look at the reduction percentage! You need to calculate your actual monthly benefit amount based on your lifetime earnings history to make an informed decision. To get an accurate estimate, create a my Social Security account on ssa.gov and check your personalized Statement. It will show your estimated benefits at 62, FRA, and 70. For the earnings limit, be aware that they count GROSS wages (before taxes). And if you're self-employed, they count net earnings. The $22,320 limit is prorated monthly ($1,860/month) in your first year claiming benefits. Also, if you're married, please research spousal benefit strategies. Sometimes it makes sense for the higher earner to delay while the lower earner claims early.

i claim at 62 n get like $1435 a month but my sister waited till 67 n gets over $2100!! i kinda wish i waited but i needed money then. the part time work thing is tricky, i tried working at walmart but had to keep my hours real low cause of that limit. they don't count your 401k withdrawals tho which is nice

My neighbor said if you earn too much they can actually make you PAY BACK benefits you already received!!! Is that true?? No one at the SS office will give me a straight answer

my cousin took SS at 62 and he said its better to have the money now cause who knows if youll live long enuf to break even if you wait!! plus he invests some of it so it grows anyway

One often overlooked strategy: If you claim early at 62 but then find you don't need the money or want to return to substantial work, you can use the "withdrawal of application" option within 12 months of claiming. You'll need to repay benefits received, but it essentially gives you a do-over. Alternatively, once you reach FRA, you can voluntarily suspend benefits until age 70 to earn delayed retirement credits on what you're eligible for at FRA (though not making up for the early claiming reduction). For the earnings limit, remember it only applies until you reach FRA. After that, you can earn unlimited amounts without benefit reductions.