Taking Social Security at 70 - Will quitting work 4 months early reduce my SS benefits?
Hey everyone! I've got a retirement timing question I'm confused about. I'll be turning 70 in May 2025, which is when I originally planned to file for my SS retirement benefits to get the maximum amount. However, I'm really burnt out at my job and want to stop working on December 31, 2024. Would it be possible to start collecting my Social Security in January 2025 instead of waiting until May? Will there be a reduction in my monthly benefit if I start 4 months before my 70th birthday? I've worked full-time for almost 45 years and I'm just DONE, but I don't want to mess up my maximum benefit after waiting all this time. Any advice appreciated!
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Amina Bah
You're in luck! There won't be any reduction in your benefit amount if you start collecting in January 2025 instead of May 2025. The delayed retirement credits stop accruing at age 70, but what matters is your actual benefit computation date, not when you stop working. As long as you've reached your Full Retirement Age (which you clearly have since you're approaching 70), you'll receive your maximum benefit regardless of whether you're still working or not. The only difference is you'll get 4 more months of payments by filing in January instead of May!
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Paolo Marino
•Oh thank goodness! That's exactly what I was hoping to hear. So I can quit on Dec 31 as planned and file right away in January without losing anything? This is such a relief!
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Oliver Becker
My situation was kinda similar. I kept working til 69 and 8 months then couldn't take it anymore lol. Filed for SS right after I quit and got my full amount. No reduction at all. You'll be fine!
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Paolo Marino
•Thanks for sharing your experience! That makes me feel a lot better about my decision. Did you find the application process easy when you did it?
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Natasha Petrova
Actually, this is a common misconception. While it's true that delayed retirement credits stop accruing at age 70, the calculation is done on a monthly basis. Each month you delay after FRA (up to age 70) gives you approximately 2/3 of 1% increase. If you start benefits 4 months before your 70th birthday, you'll miss out on those last 4 months of delayed retirement credits. It's not a huge amount, but it's about 2.67% less than your maximum possible benefit. Whether that's worth it depends on how much you need to stop working now.
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Javier Hernandez
•But doesn't that only apply if ur under 70??? The original person said they turn 70 in May so wouldn't they get their full amount in January anyway???
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Emma Davis
LISTEN TO COMMENTER #2!!! I made this exact mistake last year. Thought I could get my "age 70 benefit" a few months early and it cost me. Every month before 70 you'll lose about 0.67% of your potential maximum. For me that was about $47 less PER MONTH FOR LIFE because I started 3 months early. The SSA doesn't explain this clearly AT ALL. The system is designed to confuse us!!
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Paolo Marino
•Oh no, this is concerning. So I'd potentially be losing money every month for the rest of my life if I file in January instead of May? That adds up over time...
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LunarLegend
my sister works for SS and she tolt me that u can stop working anytime but u dont get full benefits til exactly 70. each month early is less $$
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Malik Jackson
•This is exactly right. Each month you delay from your FRA up to age 70 increases your benefit by 2/3 of 1% (for those born in 1943 or later). So if you start 4 months before turning 70, you'd miss those last 4 incremental increases. That's approximately 2.67% less than your maximum possible benefit at exactly age 70. The real question is whether getting those 4 extra payments (January-April) outweighs getting a slightly smaller amount for life. You'd need to do some math based on your specific benefit amount and life expectancy to figure out the break-even point.
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Malik Jackson
Based on your estimated benefit of $3,700 at age 70, here's the quick math: - If you claim 4 months early, your benefit would be about 2.67% less, or approximately $3,601 per month (a reduction of about $99/month). - By claiming in January instead of May, you'd get 4 extra payments at $3,601 each, totaling $14,404. - The $99/month reduction would take about 145 months (12 years) to equal $14,404. So if you expect to live beyond age 82, waiting until exactly 70 would eventually pay more over your lifetime. If not, taking it at 69 and 8 months would give you more total benefits.
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Paolo Marino
•This is exactly the kind of calculation I needed! Thank you so much. My family tends to be pretty long-lived (parents both made it past 90), so waiting until May might actually be the better financial decision for me, even though I'm really eager to quit.
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Oliver Becker
Just wondering - have you considered working part-time Jan-April instead of quitting completely? That way you could reduce your stress but still wait for maximum SS benefits. Just a thought!
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Paolo Marino
•That's actually a really good suggestion I hadn't thought of! I'll see if my employer would be open to a part-time arrangement for those 4 months. That might be the perfect compromise.
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LunarLegend
good luck getting thru to anyone at SSA to ask them directly! i've been trying for WEEKS to get someone about MY benefits question. always busy signals or 3+ hour waits then disconnects!!!!
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Natasha Petrova
•If you need to speak with someone at SSA quickly, you might want to try Claimyr (claimyr.com). They have a service that helps you get through to a Social Security agent without the long wait times. I've used it and was connected in about 15 minutes instead of hours. They have a video showing how it works here: https://youtu.be/Z-BRbJw3puU
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Javier Hernandez
I think everyone is overcomplicating this. My friend just retired and he said the SS office told him once ur FRA you can claim anytime. The maximum is at 70 but u dont lose anything if ur not working those last months. Its only if ur still working and earning $$$ that it makes a difference.
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Malik Jackson
•I'm afraid your friend received incorrect information or there was a misunderstanding. Whether you're working or not has no impact on delayed retirement credits. Those credits accrue monthly (at 2/3 of 1% per month) from your FRA until exactly age 70, regardless of employment status. This is clearly stated in SSA publications and on their website.
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Amina Bah
One additional consideration - if you decide to keep working until May to maximize your benefit, remember you can actually file for benefits up to 4 months before you want them to start. So you could submit your application in January 2025 but specify May 2025 as your benefit start date. This gives SSA time to process everything so there's no delay in your payments once May arrives.
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Paolo Marino
•That's really helpful information! I think I've decided to stick it out until May to get my maximum benefit, but I'll definitely file a few months early to make sure everything's processed on time. Thank you all for the advice - this forum has been incredibly helpful!
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