When to start Social Security after retiring - May vs June timing with final paycheck concerns

congrats on retiring! i just went thru this last yr. doesnt matter which month u choose since ur at FRA. no earnings test once u hit FRA. file whenever u want!

Since you're turning 67 (your Full Retirement Age) in May, the earnings test works differently for you. In the months BEFORE reaching FRA in 2025, you can earn up to $56,520 without penalty. After you reach FRA, there is NO earnings test. Your May birthday is important here. If you start benefits in May, and you've already reached your 67th birthday when you apply, then the earnings test won't affect you regardless of that June paycheck. If you start benefits in May but your birthday is later in the month, SSA would only count earnings from January through May toward that $56,520 limit. Your June paycheck for May work would count toward May earnings. Hope this helps clear things up!

Actually, you're all getting this WRONG. The earnings test is MONTHLY in the year you reach FRA, not annual! For any month before FRA that you want benefits, you can't earn more than $4,710 ($56,520 ÷ 12) in that month or SS will withhold your entire benefit for that month. So if you're still working in May AND filing for May, you need to make sure May earnings don't exceed $4,710. June paycheck doesn't matter for WHEN you earned the money, not when it's paid!!! SSA looks at when you EARNED the money, not when you get paid. So vacation payout in June for work done earlier doesn't count for June.

I dealt with this exact situation last year. Here's what you need to know: 1. In the year you reach FRA, SSA only counts earnings in months BEFORE the month you reach FRA 2. Since you reach FRA in May, they only count Jan-April earnings toward the annual limit 3. For May itself, since you reach FRA during that month, that entire month is exempt from the earnings test 4. Your June paycheck for May work doesn't matter - SSA cares when you EARNED the money, not when you received it Bottom line: You can apply for benefits starting in May with no concerns about the earnings test. Your FRA is 67, you're turning 67 in May, so you're all set regardless of that final paycheck timing.

Sooo confused by all this! I thought once you hit FRA you're good no matter what month??? My neighbor just did her SS and said she had to pay back some because of her earnings test thingy. Shouldn't the SS office just tell you what's best instead of making us figure it all out??

Let me clarify the exact rule here: In the calendar year you reach FRA, a special monthly earnings test applies. SSA only counts earnings in months PRIOR TO THE MONTH you attain FRA. The month you actually reach FRA and all subsequent months are exempt from the earnings test. Example: You reach FRA in May 2025. SSA only counts earnings from January-April 2025 toward the higher first-year FRA annual exempt amount ($56,520 in 2025). Starting with May 2025 (the month you reach FRA), the earnings test no longer applies regardless of how much you earn. So in your case, with a May birthday and retiring at the end of May, you can apply for benefits to start in May with no problems related to the earnings test.

happens 2 everyone! ss rules r confusing AF lol

Has anyone tried calling the SSA directly about this? I spent THREE HOURS on hold last month trying to get a simple question answered about my benefits. I finally had success using Claimyr.com to get through to an agent in 20 minutes. They call SSA and when an agent answers, they connect you. Saved me so much time and frustration! They have a video showing how it works: https://youtu.be/Z-BRbJw3puU I'd definitely recommend calling to verify all this earnings test stuff directly with SSA before filing. That's what I did with my retirement application.

One more thing to consider - regardless of the earnings test, there's no financial advantage to waiting past your FRA unless you want to earn delayed retirement credits (8% per year until age 70). Since you're retiring anyway, if you're at FRA, you might as well start benefits in May because: 1. You'll get an extra month of benefits compared to starting in June 2. The earnings test won't impact you once you reach FRA 3. There's no advantage to waiting unless you're specifically trying to maximize your benefit by waiting until 70 You can apply up to 4 months before you want benefits to begin, so you could actually submit your application now and specify May as your start month.

Here's what the SSA website says exactly about the earnings test in the year you reach FRA: "In the year you reach full retirement age, we deduct $1 in benefits for every $3 you earn above a different limit, but we only count earnings before the month you reach your full retirement age." So just to be 100% clear - they only count earnings BEFORE the month you reach FRA. If you reach FRA in May, they only count January through April earnings. May earnings don't count AT ALL, even if your birthday is May 31st. This is one of the few Social Security rules that actually works in our favor!