Will my reduced 2025 income affect my Social Security benefits at FRA? Should I file early?

They use your 35 highest earning years to calculate your benefit, so one lower year won't make a huge impact. The real question is - how does this $30k year compare to your other working years? If you've consistently earned more throughout your career, this one dip won't matter much. But if this will be one of your 35 highest years despite the reduction, then yes it could slightly reduce your PIA (Primary Insurance Amount). As for starting at 66 vs your actual FRA, you'll face a small reduction (about 6-7%) for claiming early. I'd suggest getting your earnings record from MySocialSecurity account and looking at your year-by-year history before deciding.

dont worry about 1 bad year!! they take ur top 35 years anyway so it probably wont even count! i had 2 years where i barely worked and my benefit calculation didnt change much

I think your looking at this ALL WRONG!!! The real question you should be asking is about your HEALTH not your money. You said you missed 5 MONTHS of work for medical issues!!! That's serious. If your health is declining, taking SS earlier could be smarter even with a reduction. What good is waiting for more money if your too sick to enjoy it??? SSA doesn't care about your reasons for low income. They just use the numbers. The system is BROKEN for people with health problems!

Nobody mentioned this yet but have you considered applying for SSDI (Social Security Disability Insurance) for the months you couldn't work? If you were unable to work for medical reasons, you might qualify for back payments. Might be worth looking into even though you're back at work now.

Have you tried calling the SSA to discuss your specific situation? When I was making similar decisions last year, I spent WEEKS trying to get through on their 800 number. Always busy signals or disconnects after waiting on hold forever. I finally tried a service called Claimyr (claimyr.com) that got me through to an agent in under 20 minutes. They have a video showing how it works: https://youtu.be/Z-BRbJw3puU The agent I spoke with ran calculations for different filing ages based on my specific earnings record and it helped me make a much more informed decision. Totally worth it since this is a decision that affects your income for the rest of your life.

One aspect we haven't discussed is the earnings test. If you claim at 66 but continue working in 2026, you'll be subject to the earnings limit until you reach your FRA. For 2025, the limit for people reaching FRA during the year is $56,520. Earn over that and they withhold $1 for every $3 above the limit. If you expect to earn good money next year, this might be another reason to just wait until your full FRA when the earnings test no longer applies.

Based on everything I've read here, waiting until your Full Retirement Age seems like the optimal choice for your situation because: 1. One lower-earning year won't significantly impact your benefit calculation if you have 35+ years of work history 2. You're planning to continue working at a good salary in 2026 3. You'd be subject to the earnings test if you claim before FRA 4. Your health issues are resolved and you expect to live a normal lifespan The difference between filing at 66 vs. 67 is approximately 6.7% of your benefit amount for the rest of your life. That's significant over a 20+ year retirement.

I had a similar situation 2 years ago. Bad health, income dropped, worried about SS calculation. What I found is that Social Security replaces more of your income if you're a lower earner (it's progressive). So the calculation isn't strictly proportional. Someone earning $30k doesn't get exactly half the benefit of someone earning $60k. The lower earner actually gets more than half.

After reading all this advice, what are you thinking you'll do? It's good to get different perspectives, but ultimately it's a personal decision based on your unique circumstances.