Social Security start date confusion - high earner retiring at 62 with different advice from SSA agents

The phone rep is correct. The earnings test for Social Security is based on when you actually earn income, not just the calendar year total. Since you stopped working on July 31, you have $0 earnings from August onward. The earnings limit for 2024 is $22,320 for someone under Full Retirement Age the entire year. Since you exceed that with your Jan-July earnings, you'd lose some benefits for months in 2024 when those earnings occurred. But for months when you have $0 earnings (Aug-Dec), you can receive full benefits if you've applied. So yes, you can apply in December for January payment because you're not working now. The penalty for excess earnings applies on a monthly basis during the period you were working.

OMG the SSA always gives different info!!! My brother went through something similar and the office told him one thing but the phone told him something completely different!! Its so frustrating

I think both reps might be talking about different things. The in-person rep might be thinking about the Grace Year rule. In the first year you retire, SSA can use a monthly earnings test instead of the annual one. If your monthly earnings after retirement are under the limit (like $1,860 for 2024), you can get benefits for those months regardless of your annual total. Since you haven't worked since July, you'd qualify under this rule.

The confusion here is common and relates to how the earnings test works. Let me clarify exactly what's happening in your situation: 1. The Annual Earnings Test for someone under FRA (Full Retirement Age) in 2024 is $22,320. You exceeded this with your $135,000 earnings. 2. However, SSA has what's called a "Monthly Earnings Test" for the first year you retire. Under this rule, regardless of your annual earnings, you can receive benefits for any month in which you earn less than $1,860 AND don't perform substantial services in self-employment. 3. Since you stopped working July 31, 2024, you qualify for the monthly test for August through December 2024. 4. This means you COULD apply for benefits to start as early as August 2024 (with first payment in September). 5. You can absolutely start in December for a January payment as the phone rep suggested. The in-person rep was being overly cautious, perhaps not fully considering the monthly earnings test exception. This is one of the most misunderstood aspects of early retirement benefits.

I just went through something similar. Trying to call SSA directly was a NIGHTMARE - constant busy signals, disconnects, or 2+ hour hold times. I found this service called Claimyr (claimyr.com) that got me through to an agent in under 20 minutes. They have a video demo at https://youtu.be/Z-BRbJw3puU showing how it works. After struggling for weeks trying to get clear answers about my retirement earnings test, using Claimyr finally got me to a knowledgeable agent who explained everything clearly. Might help if you need to call again to confirm your start date.

I beleve the first person was just trying to make sure you dont have to deal with an overpayment later. They get really confusing when they happen and are a pain to deal with!!! Since you earned so much this year already they probly wanted to be super safe. Thats what my neighbor told me happened with their situation.

If you earned $135k from Jan-July, you might have already exceeded what's called the "tax max" for 2024 (which is $168,600). If you did, your benefit calculation is basically done for the year anyway. So waiting till Jan vs Dec probably doesn't affect your benefit amount much either way.

This reminds me of when I retired. I think what's happening is the monthly test vs. annual test confusion. When you first retire, you get to use the monthly test which is definitely better for people who work part of the year then stop completely.

I just called SSA again using that Claimyr service someone mentioned (it actually worked!), and got through to a very knowledgeable agent. She confirmed I can absolutely start benefits in December for January payment using the monthly earnings test since I haven't worked since July. She also said I could technically apply for benefits going back to August (first payment in September) if I wanted to, but I'd need to specifically request retroactive payments for those months. I'm going to start with December/January payment as originally planned. Thanks everyone for helping clear this up! The monthly earnings test vs. annual test distinction was the key piece I was missing.