Taking Social Security at 62 in January while working part-time - yearly earnings limit questions

The earnings test is definitely one of the more confusing aspects of taking early SS benefits! Yes, if you start benefits in January, they'll use the annual earnings limit for the entire year ($22,500 for 2025). If you start benefits later in the year, they prorate the limit for the remaining months. If you go over the limit, they withhold $1 in benefits for every $2 you earn above the limit. They don't take everything back. For example, if you earn $23,500 (which is $1,000 over), they'd withhold $500 of your benefits. As for when to apply - you should submit your application approximately 3-4 months before you want benefits to start. So if you want January payments, you should apply in September or October. Since we're already past that, I'd apply immediately!

I went through this EXACT situation last year. The SSA doesn't reduce each payment a little bit - they withhold entire months of benefits until they've covered the amount you owe. They usually take them from the front-end of the year AFTER they determine you went over. In my case, I went about $3,200 over the earnings limit (earned around $25,400 when the limit was $22,200). SSA withheld my January and February 2024 checks completely to make up for the $1,600 they needed to recoup ($3,200 ÷ 2 = $1,600). For getting your application in, I'd do it RIGHT NOW. It can take 6-8 weeks to process, and you're already cutting it close for January payments!

Don't forget to factor in your Pre-FRA increases once you hit your Full Retirement Age!! I know several people who don't realize this - when you lose benefits due to the earnings test, you actually get them back later. SSA recalculates your benefit when you reach your FRA and gives you credit for the months they withheld. Your monthly payment increases permanently to make up for it! So if you're planning to live past your late 70s, going over the earnings limit isn't necessarily bad in the long run. It's kind of like forced delayed retirement credits. Also - try Claimyr if you need to talk to SSA quickly! I couldn't get through on the phone either, waiting HOURS, but used this service at claimyr.com and got through in about 15 mins. You can see how it works here: https://youtu.be/Z-BRbJw3puU - it was worth it for getting my application questions answered!

everybody forgets about Medicare!!! if your turning 62 in December your not eligible for Medicare yet since that starts at 65, but remember that when you do sign up for Medicare later your SS payment will go down because they take out the Medicare premium from your SS check. just something to keep in mind when your planning your budget for the next few years

BE CAREFUL!!!!! The SSA miscalculated my earnings when I was 62 and claimed I owed them $4,700!!!! Took me NINE MONTHS to get it fixed and they still haven't paid me back everything they took. The earnings test is a TRAP and the government just wants to STEAL your money that YOU EARNED. I wish I'd waited until FRA to avoid this headache. The SSA is INCOMPETENT!!!

I'm a retired financial advisor who specialized in Social Security planning. Here's what you need to know: 1. The annual earnings limit for 2025 is projected to be approximately $22,560 for those under FRA the entire year. Since you're turning 62 in December 2024 and claiming in January 2025, you'll be subject to the full annual limit. 2. If you exceed the annual limit, SSA withholds benefits at the rate of $1 for every $2 earned above the limit. They typically withhold full monthly payments starting at the beginning of the following year until the withholding amount is satisfied. 3. For your application timing: Apply immediately. SSA allows applications up to 4 months before benefits begin, but you're already within that window. Processing can take 6-8 weeks. 4. Important consideration: By claiming at 62, your benefit is permanently reduced by about 30% compared to your Full Retirement Age benefit. Make sure this aligns with your long-term financial plans. 5. If you exceed the earnings limit and have benefits withheld, you'll receive an adjustment at Full Retirement Age that increases your monthly benefit to account for the months benefits were withheld.

I started my benefits last year at 62 and I made sure to stay juuuust under the earnings limit. My sister went over by accident and they sent her this scary letter and stopped her benefits for like 3 months! Just keep really good track of what your earning. My boss was cool about it and would let me know when I was getting close to the limit so I could take time off if needed.

Just wanted to add one more important detail that I learned the hard way - make sure you report ALL income sources to SSA when you apply, not just your main job. I forgot to mention some occasional weekend work I did helping neighbors with yard cleanups, and it came back to bite me during their annual review. Even cash payments count toward the earnings limit! Also, if you're getting any 1099 income (like if the garden center classifies you as a contractor instead of an employee), that counts too. The SSA gets copies of all your tax documents anyway, so it's better to be upfront about everything from the start.