When to reduce work hours before filing for SS survivor benefits to avoid earnings limit issues?

The Social Security Administration looks at your earnings for the entire calendar year in which you begin receiving benefits, but they apply the earnings limit only to the months after you start receiving benefits. So if you file for survivor benefits mid-year, they'll only count your earnings from that point forward when applying the annual earnings limit. For 2025, the earnings limit for beneficiaries under FRA is projected to be around $22,300 annually. So you could work full-time until you file, then reduce your hours afterward to stay under the monthly equivalent of that limit (about $1,860 per month for the remaining months of the year).

When my mom got survivor benefits, she kept working full time and they took back a ton of money! She didn't know about the limit thing and had to pay back like half of what they gave her. Super frustrating. Definitely cut back your hours before you file!!

I've been on survivor benefits for 2 years now and let me tell you - THE EARNINGS LIMIT IS A NIGHTMARE!!! I didn't understand it at first and got hit with a HUGE overpayment notice. My advice: call SSA directly and ask them to explain EXACTLY how it applies to YOUR specific situation. Good luck even getting through though - I spent DAYS trying to reach someone!!!

My sister just went thru this last year. She kept working full time until the month she applied for survivors, then went to 25 hrs a week after that. Worked out fine! SSA only counted her earnings after she filed.

One important detail many people overlook is that the earnings limit is significantly higher in the year you reach your Full Retirement Age (FRA), and it only applies to earnings before the month you reach FRA. For 2025, if you reach your FRA during the year, the limit will likely be around $59,500 (compared to $22,300 for younger beneficiaries), and they only withhold $1 for every $3 earned above the limit. Also, only wages and self-employment income count toward the earnings limit. Investment income, pension payments, government benefits, and annuities don't count. You might want to consider exactly when in the calendar year you want to file based on your expected earnings pattern.

@profile6 No, investment gains do NOT count toward the Social Security earnings limit. The earnings test only considers wages from employment and net earnings from self-employment. Things like stock dividends, capital gains, interest, pensions, annuities, and other government benefits are not counted. This is an important distinction many people misunderstand.

@original poster - Yes, that's correct! And here's one more tip: Social Security does a special calculation in your first year of benefits called the "Grace Year" provision. If there's a month where you earn under a certain amount (1/12 of the yearly limit, so about $1,860/month in 2025) AND you don't perform "substantial services" in self-employment, you'll receive your full benefit for that month regardless of your annual earnings. This can be helpful if you have a month with little or no work after you file - you'll get the full benefit for that month even if you exceeded the annual limit with your earnings from earlier months after filing.

@profile8 Yes, it's called the "Monthly Earnings Test" or sometimes the "Grace Year Rule." It only applies in the first year you receive benefits. It means that regardless of your total annual earnings, in any month you earn below the monthly limit AND don't perform substantial self-employment services, you'll receive your benefit for that month. This is particularly useful for people who have high earnings early in the year but then retire or substantially reduce their work mid-year. You can find this in the SSA's Program Operations Manual System (POMS) section RS 02501.080.