Social Security retirement - any drawbacks to starting benefits mid-year May 2025?

There are a few things to consider with a mid-year start date. The earnings limit for 2025 (if you're under FRA) will likely be around $22,320 for the whole year. But since you're starting benefits in May, SSA will only count earnings from May-December when determining if you exceed the limit. Your January-April earnings won't count against you. However, your benefit amount will be permanently reduced based on how many months before your Full Retirement Age you claim. Each month matters in that calculation, so waiting until January 2026 would give you a slightly higher monthly benefit for life.

I started mid year and it was a NIGHTMARE!!! SSA lost my paperwork TWICE and I ended up with no income for almost 3 months!!! My daughter had to help me pay rent. The people at the office kept telling me different things everytime I called. One guy said I should of waited till January!!!!!

The difference in your benefit amount between May 2025 and January 2026 would be about 4-5% higher for the January start date (assuming you're exactly 62 in March 2025). Each month you delay between 62 and FRA adds about 0.5-0.6% to your benefit amount for life. As the previous commenter mentioned, the earnings test is only applied to months you're actually receiving benefits. So your $14,000 pre-retirement earnings won't affect your benefits as long as you don't earn above the monthly limit after you start collecting. One other consideration: if you're planning to continue with employer health insurance through April, remember that Medicare enrollment timing might be important depending on your situation. You generally want to avoid gaps in coverage.

I tried starting benefits mid-year and had to deal with months of SSA phone problems. Spent weeks trying to reach someone for a simple question. Finally found Claimyr.com which got me through to a live SSA agent in under 20 minutes! They have a video showing how it works here: https://youtu.be/Z-BRbJw3puU Regarding your actual question - the month you start does matter for benefit calculations, but the real consideration is whether you NEED the money now or can wait. Each month you delay = higher lifetime payments.

Hey there, one thing nobody mentioned - taxes! If you start benefits in May, you'll have partial year SS income plus 4 months of regular work income on your 2025 taxes. Depending on your total income, you might have a different percentage of your SS benefits subject to tax than if you waited till January. Something to discuss with your tax person if you have one.

When I retired in 2023, I started my benefits in July (mid-year) and had zero issues. Applied online about 3 months before, got confirmation, benefits started right on time. The earnings test was prorated just like someone mentioned - they only looked at my income after I started collecting. I would suggest applying at least 3 months before you want benefits to start, whether that's May or January. The online application is pretty straightforward, but it does take time for them to process everything. Good luck with your decision!

my wife started ss in april last year and it was fine but our neighbor did may and they messed up his payments for 3 months so maybe its just luck lol

One more consideration - if you're still planning to work part-time after starting benefits, the earnings limit works on a monthly basis in your first year of retirement. This is called the "Monthly Earnings Test" or "Monthly Grace Year Rule." The monthly limit is the annual limit divided by 12. So if the 2025 limit is $22,320, the monthly limit would be $1,860. In any month you earn over that amount, you wouldn't receive benefits for that month. Starting in 2026, SSA would switch to looking at your annual earnings regardless of which months you earned the money.

Just wanted to add one more perspective - I'm a former SSA employee (retired 2022). The timing of your application really shouldn't matter from a processing standpoint if you apply online well in advance. The horror stories about lost paperwork are usually from people who applied very close to their desired start date or had complex situations. Your situation sounds straightforward - retiring completely in April, starting benefits in May. The system handles mid-year starts all the time without issues. That said, your math about waiting until January for the higher monthly benefit is sound. It's really about whether you need/want the income for those 8 months in 2025 versus getting a slightly higher payment for the rest of your life. One small correction to earlier comments - the reduction for taking benefits early is calculated based on the number of months before your Full Retirement Age, not just any arbitrary month. So May 2025 vs January 2026 is an 8-month difference in your reduction calculation.

Great discussion everyone! As someone who went through this decision recently, I wanted to add that you should also consider your spouse's situation if you're married. If your spouse is younger and will be claiming spousal benefits later, starting your benefits earlier can actually help them get their spousal benefits sooner when they reach 62. Also, don't forget to factor in potential COLA (cost of living adjustments) - if you wait until January 2026, you'll get the 2026 COLA applied to your higher base amount, which compounds the benefit of waiting. One practical tip: regardless of when you decide to start, make sure you have all your documents ready (birth certificate, tax returns, bank info for direct deposit, etc.) before you apply. Having everything organized makes the process much smoother!

As someone who just went through this decision last year, I wanted to share my experience. I was in a very similar situation - turning 62 and debating between mid-year vs January start. I ultimately chose to wait until January and I'm glad I did. The monthly benefit difference might seem small (that 4-5% someone mentioned), but when you multiply it out over 20+ years of retirement, it adds up to thousands of dollars. Plus, I found the January start much cleaner for tax planning - all my SS income falls in one tax year instead of being split. One thing I'd suggest is running the numbers on SSA.gov's benefit calculator to see your exact benefit amounts for different start dates. It really helps put the decision in perspective when you see the actual dollar amounts rather than just percentages. Also, if you're concerned about SSA processing issues, applying 4-5 months in advance (whether for May or January) should give them plenty of time. I applied in September for January benefits and everything went smoothly.

Just wanted to chime in as someone who works in retirement planning - you're getting some excellent advice here! The key points about waiting until January 2026 for the higher lifetime benefit and cleaner tax situation are spot on. One additional factor to consider: if you have any employer-sponsored health insurance through April 2025, make sure you understand how that transitions to Medicare. You'll want to enroll in Medicare Part A and B during your Initial Enrollment Period (which starts 3 months before you turn 65), but the timing of when you actually need coverage can depend on your specific situation. Also, since you mentioned having a financial advisor, definitely run the exact numbers by them. They can help you model out the break-even point between starting in May 2025 vs January 2026 based on your specific benefit amounts and life expectancy estimates. Sometimes seeing the actual dollars over time makes the decision clearer. Sounds like you're being very thoughtful about this decision - that's the most important thing!

One thing I haven't seen mentioned yet is the timing of your first payment if you start in May 2025 versus January 2026. Social Security pays benefits the month after they're due, so if you start benefits in May 2025, your first payment would arrive in June. But there can sometimes be a delay with the very first payment while they finalize everything in their system. I started my benefits in March last year and didn't receive my first payment until late April, even though it should have come in early April. It wasn't a big deal since I was expecting it, but just something to factor into your cash flow planning. Also, since you're retiring in April 2025 regardless of when you start SS, make sure you have a solid plan for covering your expenses during that gap period. Whether it's 1 month (April to May) or 9 months (April to January), you'll want to make sure your savings can bridge that time comfortably. The January start date really does seem to make the most sense both financially and administratively based on everything discussed here!