Starting Social Security exactly at FRA in 2025 while still working - how will payment timing work?
I've been reading through the forums and saw a discussion about Full Retirement Age timing that got me wondering about my own situation. I was born in September 1958, which puts my FRA at March 2025. I'm confused about when my benefits would actually start if I file right at my FRA. If I apply for benefits right when I hit FRA in March 2025, would my first payment be in March (received in April), or is there some kind of waiting period I'm not aware of? Also, I plan to continue working until September or October 2025 and will probably earn around $68K by that point in the year. Since I'll be at FRA when I apply, my understanding is that my earnings won't reduce my benefits no matter how much I make - is that correct? Thank you to everyone who takes time to answer questions here. This community has been incredibly helpful as I try to navigate retirement planning.
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Amara Okonkwo
You've got a good grasp of how this works. When you reach your Full Retirement Age (FRA) in March 2025, you can apply for benefits, and you're correct that there's no earnings test once you've reached FRA. Your income won't affect your Social Security benefit amount regardless of how much you earn. Regarding payment timing: Social Security benefits are paid in the month following the month they're due for. So if you apply for benefits to start in March 2025 (your FRA month), your first payment would be received in April 2025. Social Security payments are dated based on your birth date - if you were born between the 1st-10th, you get paid on the second Wednesday; 11th-20th, third Wednesday; and 21st-31st, fourth Wednesday. One important note: I recommend applying about 3 months before you want benefits to begin, so if you want March 2025 as your start date, consider applying in December 2024 or January 2025.
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Liam O'Sullivan
•Thank you for such a clear explanation! That confirms what I thought about the earnings limit no longer applying once I hit FRA. I didn't know about the payment schedule being tied to birth date though - I was born on the 18th, so looks like I'll be getting paid on the third Wednesday of each month. Is there any disadvantage to applying 3 months early as you suggested? I don't want to accidentally start my benefits before my FRA and get hit with a reduction.
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Giovanni Marino
congrats on hitting FRA soon! my experience was different from what the other person said. i applied exactly AT my FRA month (june last year) and didnt see my first payment until august. they told me something about processing time. just letting you know it might take longer than u think
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Fatima Al-Sayed
•This is a very important point that people don't realize! The SSA has significant processing backlogs right now. Even when you apply right at your FRA, there's often a 1-2 month administrative processing period. While benefits will be backdated to your eligibility month, that doesn't help if you need the income flow right away. When I hit FRA last year, I applied 3 months before as recommended, but it still took them 6 weeks to process everything. I would have been in a tight spot financially if I hadn't planned for that delay.
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Dylan Hughes
DON'T count on getting your payment right away!! The SSA is TERRIBLE with processing times right now!!! I applied right at my FRA last November and didn't see a PENNY until February!! And good luck trying to talk to anyone there about the status - I called THIRTY SEVEN times over 2 weeks and either got disconnected or told the wait was over 2 hours!!! Make sure you have enough savings to cover the gap because the SSA doesn't care if you can't pay your bills while they take their sweet time processing your application!!!
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NightOwl42
•Same happened to my brother. Applied right at FRA and took almost 3 months to get his first payment. Said nobody would tell him what was going on with his application.
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Amara Okonkwo
To address your follow-up question: Applying 3 months early doesn't mean your benefits will start early. When you apply, you specifically select your benefit start month. The application has a field where you indicate the month you want benefits to begin - you would select March 2025 (your FRA month). The 3-month advance application is just to give SSA time to process everything so your payments can start on time. They won't start your benefits before the date you specify on your application.
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Sofia Rodriguez
•This is actually super important info! When I filled out my application last year I almost missed that field for choosing when benefits start. I think it says something like "first month you want to receive benefits" and if you don't pay attention you could accidentally request retroactive benefits or start them too early. The online application form isn't very user-friendly tbh.
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Fatima Al-Sayed
Regarding your work plans - you're absolutely right that once you reach your Full Retirement Age, the earnings test no longer applies. You can earn $68K, $168K, or even more, and it won't affect your Social Security benefits at all. However, remember that regardless of your age, up to 85% of your Social Security benefits may be subject to federal income tax depending on your "combined income" (adjusted gross income + nontaxable interest + half of your SS benefits). With $68K in earnings plus your Social Security, you'll likely have some portion of your benefits subject to federal income tax. Some people in your situation consider whether delaying their application until they stop working might be beneficial from a tax perspective, though this depends on your overall financial situation and other income sources.
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Liam O'Sullivan
•The tax implications are something I hadn't fully considered. Since I'll still be earning a good salary for part of 2025, maybe I should run the numbers to see if delaying my application until I actually stop working would be more tax-efficient. On the other hand, I don't want to permanently give up those months of benefits either. This is more complicated than I realized!
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Giovanni Marino
my cousin said if u apply at FRA u can get 6 months of backpay too. is that true? might be worth looking into
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Amara Okonkwo
•This is a common misconception. At Full Retirement Age, you can request up to 6 months of retroactive benefits, but only if you're past your FRA. So in the original poster's case, once they reach FRA in March 2025, they couldn't get retroactive benefits back to September 2024 because that would be before their FRA. Retroactive benefits are only available for months where you were already eligible for unreduced benefits (meaning already past FRA). And importantly, requesting retroactive benefits will establish an earlier entitlement date, which could affect other benefits like Medicare enrollment periods.
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NightOwl42
I think everyone is making this more complicated than it needs to be. You apply, you get money. That's it. Maybe a little delay but who cares, you'll get backpay. And don't worry about taxes, you're paying taxes on income anyway.
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Dylan Hughes
•This is TERRIBLE advice!! Of course timing matters! And yes, you'll get backpay eventually, but that doesn't help if you need the money for monthly bills! And the tax implications can be HUGE depending on other income! Some people can have up to 85% of their SS benefits taxed if they don't plan properly! Please don't dismiss legitimate concerns with oversimplified responses. The OP is trying to make informed decisions about their retirement!
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Sofia Rodriguez
Quick tip about the application process - have all your docs ready before you start! They'll want your birth certificate, maybe marriage/divorce papers depending on your situation, and bank account info for direct deposit. The online application lets you save and come back, but it's easier if you have everything ready from the start. Also, take screenshots of your confirmation page when you submit! My neighbor's application somehow got lost in their system and having the confirmation number saved him weeks of hassle.
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Liam O'Sullivan
•Great advice about the screenshots - I wouldn't have thought of that. I'll definitely have all my documents ready before I start the application. Is the online application pretty straightforward, or are there tricky parts I should be aware of?
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Amara Okonkwo
To tie everything together for your planning purposes: 1. Apply about 3 months before March 2025 (so December 2024 or January 2025) 2. Specifically select March 2025 as your benefit start month on the application 3. Understand your first payment would normally arrive in April 2025, but processing delays might push this to May or even June 4. Budget accordingly, knowing there could be a gap between when you expect payments to start and when they actually begin 5. Remember you'll get back payments for any months you're eligible but haven't received payment for yet 6. Your $68K earnings won't reduce your benefits, but will likely make a portion of your benefits taxable Does this help clarify the timing for your situation?
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Liam O'Sullivan
•Yes, this is incredibly helpful! I'm going to mark my calendar to start the application process in December 2024. I'll make sure to have extra savings to cover any potential delays in receiving my first payment. I really appreciate everyone taking the time to explain all these details - it's exactly the information I needed to plan properly for 2025. Thank you all!
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