Social Security retirement and working through March - monthly earnings limit question

they look at both annual AND monthly limits in your first year. its complicated but basically if you earn over $1,860/month (thats the 2025 monthly limit i think) before you "retire" they can withhold benefits. my brother lost a whole month of benefits because he didnt know this rule!!

The monthly earnings test only applies during the first calendar year you claim benefits. You're correct that the 2025 annual limit is $22,320 for those under FRA, which equals $1,860 monthly. Here's how it works: In your first year of retirement, SSA gives you a "grace year" where they assess earnings month-by-month. For any month you earn over the monthly limit ($1,860) AND perform substantial services, you're not considered retired for that month regardless of your annual total. If you work through March 31st and earn over $1,860 that month, you would not receive benefits for March (which would be paid in April). However, you would start receiving benefits for April (paid in May) if your earnings drop below the monthly limit. Consider retiring mid-March instead if possible. That might keep your March earnings under the monthly limit while allowing you to start benefits.

I was in almost the exact same situation last year!!! Except I was taking care of my dad not a spouse. The caregiver burnout is REAL. Take care of yourself first or you can't take care of anyone else!!!

The monthly earnings test in your first retirement year is a trap that catches many people! I spent HOURS on the phone with SSA trying to fix this when my husband retired. One thing nobody mentioned yet - if you'll reach your Full Retirement Age within the calendar year, different (higher) limits apply. And once you hit your FRA month, there's NO earnings limit anymore! Also, vacation payout DOES count as earnings in the month received. So be careful about that final paycheck - it might push you over for that month.

If you're caring for a chronically ill spouse, have you considered applying for spousal benefits instead? Depending on your spouse's work record and whether they've already filed for benefits, this might be an option that avoids the earnings test issue entirely in your situation. With caregiver stress, you're making the right call prioritizing that. I've been in your shoes and waited too long to make the change. It affected my health for years afterward.

The SSA website is USELESS on this stuff! I tried calling them 16 TIMES last year about my retirement earnings question and either got disconnected or was on hold forever and had to hang up for work. How is anyone supposed to get answers???

Going back to the original question - have you considered working part-time in March instead of full-time? If you could reduce your hours enough to stay under the $1,860 monthly limit, you could start benefits in March without any penalty. Just another option to consider!

just be careful with your math when you go part time! dont forget about bonuses, overtime, shift differentials, etc when calculating if youll be under the limit. my friend thought he was safe but then got a performance bonus in his last month that messed everything up!!!

To address your vacation payout concern: Yes, lump sum vacation pay counts as earnings in the month received, not when earned. However, you could ask your employer if they'd be willing to spread the vacation payout over multiple months instead of one lump sum. Not all employers will do this, but it's worth asking if it helps you stay under the monthly limit. Also, regarding your spouse's SSDI application - if she's approved, you may become eligible for a caregiver spouse benefit once you're both receiving benefits. This is something to discuss with SSA when the time comes.

For caregiver resources check out the Family Caregiver Alliance and your local Area Agency on Aging. They saved my sanity when I was caring for my dad!!