Social Security survivor benefits at 60 - will withheld benefits due to earnings test come back at FRA?

The SSA rep gave you partly correct information. Here's how it actually works: When you reach your FRA, Social Security will recalculate your benefit amount to give you credit for the months when benefits were withheld due to the earnings test. This results in a higher monthly benefit amount moving forward - it's called the Adjustment to Reduction Factor (ARF). You won't get a single lump sum payment for all those withheld benefits. Instead, your monthly payment will increase to account for those months when you didn't receive benefits. This permanent increase helps make up for the benefits you lost while working. For example, if you had 36 months of benefits partially or fully withheld before FRA, they'd recalculate your benefit as if you had started receiving 36 months later, which means a higher amount for the rest of your life.

The same thing happened to my sister. She started survivor benefits at 61 and was still working. SSA withheld about half her benefits each year. When she reached FRA last year they DID give her a lump sum for some of the withholding, but it wasn't for the full amount they had withheld over the years. Then they also increased her monthly amount going forward. She was very confused about the whole process and said the explanations from SSA didn't make any sense. Just be prepared that you might not get back everything they withhold!

The previous responses are partially correct, but let me clarify the technical details: 1. The Adjustment to the Reduction Factor (ARF) happens automatically at your FRA - you don't need to request it. 2. Your benefit will be recalculated to give you credit for months when full or partial benefits were withheld due to the earnings test. 3. There is NOT typically a lump sum payment involved in this process. The person who mentioned their sister receiving a lump sum might be referring to a different adjustment or retroactive benefits for a different reason. 4. The recalculation essentially treats you as if you had applied for benefits later than you actually did, which results in a higher monthly amount for the rest of your life. 5. This adjustment only applies to months when benefits were reduced or withheld specifically due to the earnings test. The ARF adjustment is one of the most misunderstood aspects of Social Security, and unfortunately, some claims representatives don't explain it correctly.

my mom went thru this exact thing!!! the ssa people always tell u different things depending who u talk to. when she got to fra they did increase her check but it wasnt as much as she thought it wud be. she had to call and argue with them for like 3 months to get it fixed. make sure u keep REALLY good records of which months they withhold!!!

If you're dealing with SSA withholding issues - or planning for future recalculations - the hardest part is often just getting through to someone knowledgeable at Social Security. I spent days trying to reach someone about my own survivor benefits question earlier this year. After multiple disconnected calls and hours on hold, I used a service called Claimyr (claimyr.com) that got me connected to an SSA agent in under 20 minutes. They have a video showing how it works: https://youtu.be/Z-BRbJw3puU It was worth it to speak with someone who could pull up my specific record and explain exactly how my benefits would be adjusted at FRA, rather than getting general information that might not apply to my situation. Getting accurate info directly from SSA about your specific case is really important for something this complex.

@profile6 Yes it actually worked for me. I was skeptical but desperate after wasting so much time trying to get through. Got connected in about 15 minutes when I had been trying for days on my own. The SSA agent I talked to was able to see my complete work history and explain exactly how my benefits would be calculated.

The SSA is a TOTAL MESS these days! My husband and I both got survivor benefits (his ex-wife died, my husband died) and let me tell you they COMPLETELY messed up both our payments!!! They withhold money without proper explanation and then good luck getting a straight answer about when or if you get it back. I've given up trying to understand their ridiculous system.

Thank you all for the helpful responses! I think I understand better now - it sounds like at FRA, they'll automatically adjust my benefit amount going forward to account for months when benefits were withheld due to my earnings. I'll definitely keep detailed records of which months have benefits withheld and how much is withheld each year. I'm still a bit confused about the possibility of a lump sum that one person mentioned their sister received. I wonder if that might have been related to something else or maybe a retroactive payment of some kind? Either way, it sounds like I'm on the right track claiming survivor benefits now while continuing to work, and then letting my own retirement benefit grow until 70. I appreciate everyone taking the time to explain this complicated process!

I went through something very similar when I started my survivor benefits at 62. The earnings test can definitely be confusing, especially when you get different explanations from different SSA representatives. From my experience, what happens is that SSA keeps track of all the months when your benefits were reduced or withheld due to the earnings test. Then at your FRA, they automatically recalculate your benefit to give you credit for those months - essentially treating you as if you had filed later than you actually did. This results in a permanently higher monthly benefit going forward. One thing I wish someone had told me earlier: make sure you understand exactly how much you're allowed to earn each year without penalty. The earnings limit changes annually, and in 2024 it's $22,320 for people under FRA. Any earnings above that amount result in $1 being withheld for every $2 you earn over the limit. Also, keep copies of all your annual earnings statements and any correspondence from SSA about benefit adjustments. This documentation becomes really helpful if you need to verify the recalculation was done correctly at FRA. Your strategy of claiming survivor benefits now while letting your own retirement benefit grow until 70 is exactly what I did, and it worked out well financially. Good luck with everything!