Working at 63 - should I delay Social Security until FRA to avoid earnings test?

You're absolutely on the right track with your thinking. The earnings test would indeed reduce your benefits substantially if you're still working at a good income level. Just to clarify the 2025 numbers - the earnings limit for someone under Full Retirement Age (FRA) is expected to be around $22,320, and you'd lose $1 for every $2 above that threshold. Two important things to remember: 1. The money you "lose" to the earnings test isn't truly lost forever. SSA recalculates your benefit when you reach FRA to credit back those withheld benefits. 2. However, claiming early still means a permanently reduced benefit (about 6.67% per year before FRA). I was in a similar situation and waited until my planned retirement at 66. Made sense not to start benefits while earning above the limit.

I was in exactly your situation! I was working as a part-time bookkeeper at 63 and making about $42K. I tried applying for my benefits thinking I could get some extra money coming in, but it was a HUGE mistake. SSA took back almost everything because of that earnings test. I ended up having to call them 8 TIMES to fix issues with how they were calculating my withholding. After dealing with hours of hold music and disconnected calls, I found this service called Claimyr (claimyr.com) that got me through to a real SSA agent in under 20 minutes. They have a demo video here: https://youtu.be/Z-BRbJw3puU. Best decision ever because I finally got someone who helped me withdraw my application (yes, you can undo it within 12 months!) and wait until my job ended at 65. Trust me, if you're making good money, just wait. The headache isn't worth it.

Financially speaking, if you're still earning enough that the earnings test would wipe out a significant portion of your benefits, waiting is almost always the smartest move. Not only do you avoid the hassle of the earnings test, but your benefit amount continues to grow by approximately 8% per year (plus COLA adjustments) between FRA and age 70. I've seen cases where people file early while working because they misunderstand how the earnings test works or they want to "lock in" benefits. But there's no financial advantage to filing while you're still working and earning above the limit. That said - if your health is poor or you have other reasons to believe your longevity might be limited, the calculation can change. But based solely on the financial factors you've mentioned, waiting makes the most sense.

My husband did the SAME THING last year!!! He was 63 and decided to keep working until 66. Makes no sense to apply when ur still making $$$. The SS office told us the break even point is usually around 78-82 years old between taking early vs waiting til FRA. So u gotta think about ur family health history too I guess.

Let me tell you something about Social Security that they don't advertise - the whole system is DESIGNED to confuse people into making bad decisions! The earnings test is just one more trap to catch unsuspecting workers. I filed at 62 because I don't trust the government to keep the program solvent, and now they take back half my benefit because I'm still working. And good luck getting any help from the SSA - their offices are barely open and the phone lines are a JOKE. If I were you, I'd talk to a financial advisor who specializes in SS claiming strategies BEFORE you make ANY decisions. Don't trust what you read online (including from me lol) because everyone's situation is unique.

just wondering but does ur husband collect SS already? if he does maybe look into something called "restricted application" where u might be able to get spousal benefits while letting ur own benefit grow. my neighbor did this but i think they changed the rules for people born after 1954 so it might not apply to u anymore

Thank you all for the helpful responses! I'm definitely leaning toward waiting until at least my job ends in 2 years. From what you're all saying, it seems like applying while still earning good income just creates headaches with the earnings test, even if technically that money isn't permanently lost. To answer the question about my husband - he's turning 65 next month but plans to work until 68. He hasn't filed for his benefits yet either. We're trying to maximize our combined lifetime benefits since we're both in good health with long-lived parents.

i filed at 62 while working part time and regret it so much!!! they take back so much of my check some months i barely get anything. plus when i do fully retire my benefit is permanently lower. wish i had just waited.

Based on what you've shared, waiting until your consulting work ends makes the most financial sense. One additional factor to consider: tax implications. When you're working and also receiving Social Security benefits, up to 85% of your SS benefits may become taxable depending on your combined income. This is separate from the earnings test and is another reason many working people delay benefits. If you both have solid earnings records, a common strategy for married couples in good health is for the higher earner to delay until 70 (maximizing the eventual survivor benefit) while the lower earner claims at FRA. This provides some income flow while still optimizing your household's lifetime benefits.