Will my Social Security be reduced if I stop working two months before applying at age 63?

The monthly earnings test would apply in your case. Since you'll stop working before you start collecting, your benefits won't be reduced regardless of how much you earned in January and February. The annual earnings limit only matters if you're working AND collecting benefits in the same months. When you've completely stopped work before benefits begin, you're good to go!

Congrats on retirement! Just make sure u report to SSA that you stopped working when u apply. They might assume ur still working if u dont tell them

While the previous comment is mostly correct about the monthly earnings test, there are some important nuances you should understand: 1. In 2025, the annual earnings limit for someone your age (under Full Retirement Age) will likely be around $23,000-24,000 (it's $21,240 in 2023 with annual COLA increases) 2. Even though you're stopping work before collecting, SSA will look at your annual income for 2025 3. HOWEVER, they'll apply the monthly earnings test for the first year you retire 4. This means that if you earn over the monthly limit (2025 annual limit ÷ 12) in January and February, but have $0 earnings for the remaining months you collect benefits, your benefits WON'T be reduced This is called the "grace year" provision and it's specifically designed for people in your situation who retire mid-year.

my neighbor thought the same thing but SS still reduced his check because of his first quarter earnings! the SSA computers don't always get it right

I had the EXACT same situation last year!!! Stopped working in March, started collecting in May at 63. Was SO STRESSED about this. Called SSA like 10 times and could never get through to anyone to get a straight answer. Kept getting disconnected or waiting forever!!! 😡😡😡 Finally found this service called Claimyr (claimyr.com) that got me connected to a real person at SSA in under 20 minutes! They have this video showing how it works: https://youtu.be/Z-BRbJw3puU The agent confirmed that because I completely stopped working before I started benefits, there would be NO REDUCTION regardless of what I earned January-March. Such a relief! Definitely worth checking with them directly in your situation.

Everyone here is missing a critical point. The earnings test is based on your AGI (Adjusted Gross Income) for the WHOLE YEAR, not just wages while collecting SS. So if your AGI goes over the threshold from ANY source (including investments, rental income, etc.), you will have a reduction. I learned this the hard way.

Just wanted to add that at 63, your benefit is already permanently reduced by about 25% from what you'd get at full retirement age (which I'm guessing is 67 for you). This reduction is completely separate from the earnings limit issue. Make sure you've considered whether taking it early makes financial sense for your situation.

my sister went thru this exact thing!! be careful, the local office gave her wrong info and told her she would be fine but then they took money back later!! make sure u get it in writing

Thank you all for the helpful information! I made an appointment with my local SS office for next week to discuss my specific situation. Will make sure to ask about the monthly earnings test and get clear confirmation about my January/February earnings not affecting my benefits starting in April. Really appreciate everyone's input!

Great advice from everyone here! Just wanted to add one more tip - when you do meet with SSA next week, bring documentation showing your last day of work (like a letter from HR or your final paystub). This can help speed up the process and avoid any confusion later. Also, if you're planning to do any freelance or consulting work in the future, make sure to ask about how that would affect your benefits so you're prepared. Good luck with your retirement!