Will my CDs and investments affect Social Security retirement benefits at 63?

Good news! Your investments like CDs, stocks, bonds, and mutual funds don't count against your Social Security retirement benefits. They're considered assets, not earned income. The only income that can reduce your benefits when claiming before Full Retirement Age is EARNED income (like wages from a job or self-employment) above the annual earnings limit ($22,320 for 2025). Dividends, interest, and capital gains from your investments are considered UNEARNED income and don't count toward the earnings test. So your CDs and mutual funds won't affect your benefits at all. Just keep in mind that claiming at 63 means a permanent reduction of about 25% compared to waiting until your FRA at 67. Make sure that works for your long-term plan!

I was in the exact same position last year! Called SSA about twenty times trying to get a straight answer on this. What a NIGHTMARE. Spent hours on hold just to get disconnected. Finally found Claimyr (claimyr.com) which got me through to an actual agent in under 10 minutes. You can see how it works here: https://youtu.be/Z-BRbJw3puU The agent confirmed investments don't affect benefits - only wages from work matter for the earnings test. I have way more in investments than you mentioned and had zero issues getting approved. Just FYI, they will ask about your work situation during the application though.

While CDs and investments don't affect your Social Security benefits, there are two important things to consider: 1. If your combined income (adjusted gross income + nontaxable interest + half of your SS benefits) exceeds certain thresholds, up to 85% of your benefits might become taxable. 2. For 2025, if you earn more than $22,320 from employment or self-employment, your benefits will be reduced by $1 for every $2 you earn above that limit until you reach Full Retirement Age. Since you're collecting at 63, you'll have a permanent reduction of approximately 25% from your full benefit amount. If you can afford to wait, each year you delay between now and 70 will increase your monthly benefit.

My sister took SS at 62 and REGRETS it SO MUCH. She gets almost $800 LESS every month than her friend who waited till 70!! If you don't absolutely need the money right now, PLEASE reconsider. Once you take early benefits, you're STUCK with that lower amount FOREVER. I don't think investments affect anything tho - it's only if you're still working at a job. The system is designed to PUNISH people who claim early and still work. Typical government nonsense.

Just want to add that SSI (Supplemental Security Income) DOES have asset limits, but regular Social Security retirement benefits don't. Sometimes people confuse the two programs. SSI has a $2,000 asset limit for individuals ($3,000 for couples), but that's a completely different program meant for low-income seniors and disabled people.

i filed at 63 too last yr. my investments didnt mess up anything but like someone else said the tax thing is annoying. i got a littl surprise at tax time lol. but the monthly benfit itself wasnt reduced at all from having investments. i sstill get dividends and interest and cds maturing fine with no problems

My aunt recently told me the Social Security Administration looks at ALL your finances when deciding how much to give you. She said her brother got less benefits because he had too many assets. But from what I'm reading here that doesn't sound right?

Hey Sean! I just went through this exact same situation when I filed at 63 last year. Your CDs and mutual funds absolutely will NOT affect your Social Security retirement benefits - I had similar amounts invested and zero issues. What you need to know: Social Security retirement benefits are based on your work history and earnings record, not your current assets. The earnings test that reduces benefits only applies to WORK income (wages, self-employment) above $22,320 in 2025. Investment income like interest, dividends, and capital gains doesn't count toward this limit. I kept all my investments when I filed and continue to receive interest and dividends without any problems. The only thing to be aware of is that investment income can make a portion of your SS benefits taxable at year-end, but it doesn't reduce the actual monthly benefit amount. Your neighbor was probably thinking of SSI (Supplemental Security Income), which has strict asset limits, but that's a completely different program. Regular Social Security retirement is an earned benefit - you paid into it through payroll taxes, so your savings don't matter! Feel free to ask if you have other questions about the process!

Sean, I completely understand your concern about this! I went through the same worry when I filed for early retirement at 62. The good news is that your CDs and mutual fund investments will have absolutely zero impact on your Social Security retirement benefits. Here's what I learned from my experience: Social Security retirement benefits are calculated based on your 35 highest-earning years where you paid into the system - your current assets don't factor in at all. The only thing that can reduce your benefits when claiming before Full Retirement Age is earned income from working (wages or self-employment) that exceeds the annual limit. Your investment income - interest from CDs, dividends from mutual funds, capital gains if you sell - all of that is considered "unearned income" and doesn't count toward the earnings test. You can keep earning from your investments without any effect on your monthly Social Security check. The confusion often comes from people mixing up regular Social Security retirement (which you've earned through years of payroll taxes) with SSI, which is a needs-based program with strict asset limits. You're applying for the benefit you've earned, not a welfare program. One heads up though - while your investments won't reduce your benefits, the income from them could make a portion of your Social Security taxable when you file your taxes. But that's a tax issue, not a benefit reduction issue. You're all set to file without worrying about your savings!

Sean, I know exactly how stressful this uncertainty can be! I'm currently 62 and have been researching this same question for months before deciding whether to file early myself. Everyone here is absolutely correct - your CDs and mutual funds will NOT affect your Social Security retirement benefits at all. I've spoken to three different SSA representatives and they all confirmed the same thing: only EARNED income (wages from a job or self-employment) above the annual limit can reduce your benefits if you file before Full Retirement Age. Your $45k in CDs and $30k in mutual funds are considered assets, and any interest or dividends they generate are unearned income. The Social Security Administration doesn't even ask about your investments during the retirement application process - they only care about your work history and current employment status. What really helped ease my mind was learning that Social Security retirement benefits are an INSURANCE program you've paid into through payroll deductions over your working years. It's not a welfare program with asset tests like SSI. You've already "earned" your benefits based on your highest 35 years of covered earnings. The 25% permanent reduction for filing at 63 is definitely something to consider carefully, but if you need the income now, your investments won't complicate that decision at all. Just be prepared for potential tax implications down the road if your total income (including investment earnings) gets high enough. Hope this helps put your mind at ease!

Hey Sean! I'm actually in a very similar situation - turning 63 soon and have been worried about the exact same thing with my investments. Reading through all these responses has been SO helpful! I have about $60k in various CDs and some stock investments, and I've been terrified that having these would somehow mess up my Social Security application. It's such a relief to see multiple people confirming that investments don't count against your benefits at all. What really helped me understand this was when someone explained that Social Security retirement is an earned benefit based on what we paid in through payroll taxes over the years - it's not a needs-based program that looks at your current financial situation. That makes so much sense when you think about it that way! I'm planning to file online in the next few weeks too. Sounds like the process is pretty straightforward and they don't even ask about your investments during the application. The only thing I'm still trying to figure out is whether I should wait a bit longer to avoid that 25% reduction, but honestly, I think I need the income now more than I need to worry about maximizing it later. Thanks for asking this question - you've helped more people than just yourself with this post!

Sean, I completely understand your concerns! I was in almost the exact same situation when I filed at 62 last year. I had around $40k in CDs and some index funds, and I was terrified they would somehow reduce my benefits. The great news is that your investments absolutely will NOT affect your Social Security retirement benefits in any way. Here's what I learned: Your CDs and mutual funds are considered assets, not income that counts toward the earnings test. The only thing that can reduce your early retirement benefits is EARNED income from working (wages or self-employment) above $22,320 in 2025. Investment income like interest, dividends, and capital gains doesn't count at all. I kept all my investments when I filed and continue receiving my full (reduced) benefit amount every month. The interest from my CDs and any dividends have zero impact on my monthly Social Security check. The confusion often comes from people mixing up regular Social Security retirement benefits (which you've earned through years of payroll taxes) with SSI, which is a needs-based program with strict asset limits. What you're applying for is the benefit you've already earned - your current savings don't matter. One thing to be aware of: investment income can make a portion of your SS benefits taxable, but that's just a tax issue at year-end, not a reduction in your actual monthly benefit. You can file with confidence knowing your CDs and investments won't cause any problems!

Sean, I was literally in your exact shoes just 8 months ago! I had about $50k in CDs and some bond funds, and I was absolutely panicking that they would mess up my Social Security application at 63. Here's what I wish someone had told me earlier: your investments will have ZERO impact on your Social Security retirement benefits. None whatsoever. I kept every single investment I had, and my monthly benefit has been deposited like clockwork ever since I started receiving it. The key thing to understand is that Social Security retirement benefits are based solely on your work history and the payroll taxes you paid over your career - not your current financial situation. The earnings test that can reduce benefits only applies to money you earn from WORKING (wages or self-employment income) above the annual limit. Your CDs generating interest? Doesn't matter. Mutual fund dividends? Doesn't count. Even if you sold investments and had capital gains? Still doesn't affect your monthly benefit. I think what confuses people is that there ARE government programs with asset limits, but that's SSI (Supplemental Security Income), which is completely different from the Social Security retirement benefits you've earned through working. The Social Security application didn't even ask about my investments - they only wanted to know about my work history and whether I planned to keep working. The whole online process took maybe 40 minutes, and I had my first payment within a few weeks of approval. File with confidence - your savings are totally fine!

Sean, I completely understand your worry about this! I was in a very similar situation when I filed at 62 and had the exact same concerns about my investments affecting my benefits. The excellent news is that your CDs and mutual funds will NOT impact your Social Security retirement benefits at all. Everyone here has given you accurate information - only EARNED income from working (wages or self-employment) above the annual earnings limit can reduce your benefits when you claim before Full Retirement Age. Your investments are considered assets, and any income they generate (interest, dividends, capital gains) is "unearned income" that doesn't count toward the earnings test. I've been collecting benefits for over a year now while maintaining all my investments, and there have been zero issues with my monthly payments. What helped me understand this was realizing that Social Security retirement benefits are an insurance program you've paid into through decades of payroll taxes - it's not a welfare program that examines your current assets. You've already "earned" these benefits based on your work history. The confusion your neighbor has likely comes from mixing up regular Social Security retirement with SSI (Supplemental Security Income), which does have strict asset limits but is a completely different needs-based program. Just be aware that while your investments won't reduce your benefits, they could make a portion of your Social Security taxable depending on your total income. But that's just a tax consideration, not a benefit reduction. You can file confidently knowing your $75k in investments won't cause any problems with your application!

Sean, I'm so glad you asked this question! As someone who just joined this community and is approaching 62 myself, I've been wondering about the exact same thing. I have a smaller amount saved up - about $25k in CDs and some savings bonds - but I've been equally worried about whether they'd cause problems with my Social Security application. Reading through all these responses has been incredibly educational and reassuring. The consistent message from everyone who's actually been through this process is crystal clear: investments and savings don't affect your Social Security retirement benefits at all. Only earned income from working matters for the earnings test. What really helped me understand this was the explanation that Social Security retirement is an earned benefit we've paid into through payroll taxes over our working years - not a needs-based program that looks at our current assets. That makes perfect sense when you think about it that way! It's also really helpful to learn about the difference between regular Social Security retirement and SSI, since that seems to be where a lot of the confusion comes from when people hear conflicting information from friends and neighbors. Thanks for starting this discussion - you've helped educate not just yourself but many of us who are in similar situations and dealing with the same concerns. This community is amazing!

Sean, I completely understand your anxiety about this! I was in almost exactly your situation when I filed at 63 two years ago - I had about $40k in CDs and some retirement account investments, and I was terrified they would somehow mess up my Social Security benefits. I'm happy to confirm what everyone else has told you: your investments will have absolutely NO impact on your Social Security retirement benefits. Zero. None whatsoever. I've been collecting my monthly benefits for two years now while keeping all my investments intact, earning interest and dividends, and there have been no issues at all. Here's what I learned that really put my mind at ease: Social Security retirement benefits are calculated based on your highest 35 years of earnings where you paid Social Security taxes - period. Your current assets don't factor into this calculation at all. The earnings test that can reduce benefits only applies to money you earn from WORKING (wages or self-employment income) above the annual limit ($22,320 for 2025). Investment income - interest from CDs, dividends from mutual funds, capital gains if you sell - all of that is considered "unearned income" and doesn't count toward the earnings test. You can continue earning from your investments without any effect on your monthly Social Security payment. The confusion often comes from people mixing up regular Social Security retirement (which you've earned through years of payroll taxes) with SSI, which is a needs-based program with strict asset limits. What you're applying for is a benefit you've already earned - your current savings are completely irrelevant. One thing to keep in mind: while your investments won't reduce your benefits, the income from them could make a portion of your Social Security benefits taxable when you file your taxes. But that's just a tax consideration, not a benefit reduction. File with complete confidence - your $75k in investments won't cause any problems with your application!

Sean, as someone who just found this community while researching my own Social Security filing, I want to add my voice to everyone else's reassuring messages! I'm 64 and have been putting off filing because I was worried about similar issues with my investments. After reading through this entire discussion, I'm amazed at how consistent everyone's experience has been - your CDs and mutual funds absolutely will NOT affect your Social Security retirement benefits. What really struck me was how many people mentioned they had even larger investment amounts than yours and faced zero issues. The key insight that helped me understand this was realizing that Social Security retirement is an EARNED benefit based on our decades of payroll tax contributions - not a means-tested program that examines our current financial situation. The SSA already calculated what we're entitled to based on our work history, and our current assets are completely irrelevant to that calculation. I love how multiple people explained that only EARNED income from working (wages/self-employment) above $22,320 can reduce early retirement benefits - investment income like interest and dividends doesn't count at all toward the earnings test. Thank you for asking this question! It's given me the confidence to finally move forward with my own application. This community is incredibly helpful, and it's clear that your neighbor was confusing regular Social Security with SSI (which does have asset limits but is a completely different program). You can absolutely file with peace of mind knowing your $75k in investments won't cause any problems whatsoever!

Sean, I just want to echo what everyone else has shared here - your investments absolutely will NOT affect your Social Security retirement benefits! I'm new to this community but have been researching this exact question for months as I approach my own filing decision. What really helped me understand this was learning that Social Security retirement benefits are based entirely on your work history and the payroll taxes you paid over your career. The SSA doesn't even ask about your current assets during the application process because they're completely irrelevant to the benefit you've already earned. The confusion often comes from people mixing up different programs. Your neighbor was probably thinking of SSI (Supplemental Security Income), which does have strict asset limits, but that's a welfare program for people with very low income and resources. Regular Social Security retirement is completely different - it's an insurance benefit you've paid into for decades. Your CDs and mutual funds generating interest and dividends won't count toward the earnings test either. Only wages from actual employment or self-employment income above $22,320 in 2025 can reduce your benefits when filing early. It's such a relief to see so many people in this thread who've successfully gone through this process with similar or even larger investment amounts. The consistent message gives me confidence to move forward with my own application too. Thanks for starting this discussion - you've helped more people than just yourself!