Will my state pension reduce SS benefits if I retire before my FRA?

Good news - your state pension does NOT count toward the earnings limit. The earnings test only counts wages from actual work or self-employment income. Pensions, investment income, interest, annuities, capital gains and other government benefits don't count as earnings for this purpose. What WILL affect your Social Security, however, is the Windfall Elimination Provision (WEP) since you worked in a job not covered by Social Security. This is different from the earnings test and will likely reduce your SS benefit amount regardless of when you claim.

watch out for the WEP!! my husband got hit with that and his ss check went from what shouldve been like $1800 to only $950!! complete bs if you ask me

Just to clarify what others have said: 1. Pension income (state, federal, private) NEVER counts toward the earnings test limit 2. Only wages from actual work or self-employment count 3. For 2025, the limit is $21,240 if you're under FRA the whole year 4. For every $2 you earn above that limit, SSA withholds $1 from benefits 5. The year you reach FRA, the limit is much higher ($56,520 for 2025) and the reduction is only $1 for every $3 above 6. After you reach FRA, there is NO limit on earnings But as others mentioned, you need to be very concerned about WEP and possibly GPO (Government Pension Offset). These will affect your benefit amount regardless of when you claim or how much you earn.

I just want through this EXACT situation!!! I retired from state government job last year at 62, with pension similar to yours. Started SS early. My pension did NOT count toward earnings test, but my SS was reduced because of WEP. The real issue is if you need to call SS office to figure this out - IMPOSSIBLE to get through. I spent 4 days trying, kept getting disconnected or 2+ hour wait times. Finally found this service called Claimyr (claimyr.com) that got me through to a real person at SSA in less than 10 minutes. They have a video showing how it works: https://youtu.be/Z-BRbJw3puU Def worth it for something this important. The agent I talked to confirmed that pension doesn't count toward earnings test, but explained exactly how WEP would affect me.

Does anyone know if the earnings test is based on gross income or net income if you're self-employed? I'm in a similar situation but planning to do consulting work after I retire from my state job.

One important point that hasn't been mentioned - if your benefits are reduced because you exceed the earnings limit before FRA, you'll get that money back! SSA recalculates your benefit when you reach FRA to credit you for months when benefits were withheld. So you're not permanently losing that money, just temporarily. But the WEP reduction (from your non-covered pension) IS permanent and doesn't change when you reach FRA.

my neighbor said her husbands state pension didn't count for earnings test but when he did some consulting work they reduced his SS even though he was under the limit? makes no sense

I'd also recommend checking if you'll be subject to the Government Pension Offset (GPO) in addition to WEP. GPO affects spousal or survivor benefits if you receive a pension from work not covered by SS. It can reduce or eliminate your ability to collect on your spouse's record if that would normally be higher than your own benefit. Many people get caught by surprise with this one.

To summarize for the original poster: 1. Your state pension does NOT count toward the earnings test limit 2. If you work part-time and earn over $21,240 in 2025, benefits will be reduced 3. Your SS benefit will likely be reduced by WEP regardless of when you claim 4. You should check if GPO will affect any spousal/survivor benefits 5. Consider whether it makes financial sense to claim at 63 or wait until FRA or even age 70 6. The earnings test goes away completely once you reach your FRA of 67 Making the right Social Security claiming decision can mean tens of thousands of dollars difference over your lifetime.