Working until April after applying for early SS benefits at 62 - Will my $61K salary cause problems?
I'm turning 62 at the end of February and decided to claim SS early. I know I'm taking a reduced benefit, but it makes sense for my situation. I've already completed the application and got my award letter saying I'll receive my first deposit mid-April. Here's my dilemma - my employer has asked me to stay until April 22nd to help train my replacement. I currently make about $76,500/year ($6,375/month). I'm worried about the earnings limit since I'll be working almost 4 months this year before retiring. Will this cause problems with my benefits? Will SS make me pay something back? I've tried calling the local office multiple times but keep getting voicemail or disconnected. UPDATE: I'm even more confused now! Some articles say there's a monthly limit of $1,940, others mention a yearly limit of $23,400. I should definitely be under the yearly amount since I'm only working through April, but will the higher monthly income in those months trigger some kind of review? Really don't want to deal with overpayment notices next year. Why does SS make this so complicated and impossible to get clear answers?
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Amara Eze
dont worry about the monthly limit! thats ONLY for the first year u claim and ONLY if u make over the yearly amount too. if ur total 2025 income will be under $23,400 then ur fine!!!!!
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Liam McGuire
•Thank you! So even though I'll make about $6,375 per month for January-April (which is way over the monthly limit), it doesn't matter as long as my total for the year stays under $23,400?
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Giovanni Ricci
The earnings test is a bit complex, so let me clarify. There's an annual limit ($23,400 in 2025) and a monthly limit ($1,950) that applies in your first year of retirement. Here's how it works for your situation: - If your total earnings for 2025 stay under $23,400, you won't have any benefit reduction regardless of how much you earn in any specific month - If you exceed $23,400 for the year, SSA will withhold $1 in benefits for every $2 you earn above the limit - The monthly test only applies during the first year you claim AND only in months AFTER you've officially retired Since you're working through April 22nd and then fully retiring, you'll only need to worry about the annual limit. Based on your salary, you'll earn approximately $25,500 before stopping work (76,500 ÷ 12 × 4), which puts you slightly over the annual limit. The good news is you'll only have about $2,100 over the limit, so they'd withhold around $1,050 in benefits (half of the excess).
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NeonNomad
•I had a similar situation last year and you're absolutely right about the annual vs monthly test. The only thing I'd add is that SSA doesn't actually take a little bit from each monthly check - they usually withhold entire checks from the beginning of the year until they've covered the estimated reduction. They reconcile everything when you file taxes the next year.
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Fatima Al-Hashemi
when i started my SS they told me about the annual limit but i kept working part time and went over by like $4000... then next year they sent me this OVERPAYMENT NOTICE and wanted all this money back! such a headache. make sure u know EXACTLY what ur gonna earn this year
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Liam McGuire
•Oh no, that's exactly what I'm worried about! Did you have to pay it all back at once or did they let you set up a payment plan?
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Dylan Mitchell
I think everyone's missing something important here - when you FIRST apply for Social Security, there's a special grace period in the first year. If you're retiring in April, then you could use the monthly earnings test for May-December, as long as you don't earn more than $1,950 in any of those months. That's different from the annual test. The monthly test only applies in the year you first retire!
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Giovanni Ricci
•You're absolutely right about the monthly grace period in the first year of retirement. However, there's a key distinction - the monthly test only applies in months where you've officially retired and aren't performing substantial services. Since the original poster is working through April 22nd and earning their full salary, they wouldn't qualify for the monthly test in January-April. For May-December, they would qualify as long as they earn under $1,950 per month AND don't return to substantial work. If they remain fully retired after April, they'll essentially use a hybrid approach - annual test for January-April earnings and monthly test for May-December.
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Sofia Martinez
I just went through this exact situation last year. I turned 62 in January, applied for benefits right away, but kept working through May at about $80K/year. Here's what happened: SSA started my benefits but then adjusted them later in the year. I went over the annual limit by about $8K, so they withheld about 4 months of payments to cover it. But instead of taking a little from each payment, they just stopped sending checks for a few months. The most frustrating part was trying to get someone on the phone to explain it. I spent HOURS on hold, got disconnected multiple times, and finally gave up trying. Eventually got a letter explaining everything, but it was super stressful not knowing what was happening.
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Liam McGuire
•That sounds awful! Did you ever manage to talk to anyone at SSA about it? I'm worried about the same thing happening to me - not being able to reach anyone for clarification.
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Dmitry Volkov
Have you tried using Claimyr to reach SSA? After going through exactly what you're experiencing - getting disconnected, endless holds, never reaching a person - I tried their service. They basically wait on hold for you and call when an agent picks up. Saved me hours of frustration when I needed to sort out my earnings test questions. Their video demo shows how it works: https://youtu.be/Z-BRbJw3puU - the site is claimyr.com if you want to check it out.
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Liam McGuire
•I've never heard of this service! That sounds exactly like what I need. I'll check out the video. Did you find the SSA representatives were able to clearly explain how the earnings limit would affect your specific situation?
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Dmitry Volkov
•Yes! Once I actually got through to a rep, they pulled up my record and explained exactly how they would calculate any withholding based on my projected earnings. They even sent me a follow-up letter confirming everything we discussed. The key is actually getting through to someone who can access your specific information.
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Fatima Al-Hashemi
THE WHOLE SYSTEM IS RIGGED!!! they make it IMPOSSIBLE to understand the rules and then PUNISH US when we get it wrong! i bet they DELIBERATELY make it hard to reach them too so people just give up trying to get help!!!!
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Amara Eze
•lol calm down karen 😂 the rules r on the website. not ssas fault people dont read them
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Sofia Martinez
Quick tip that helped me: Tell your employer to report your retirement date to Social Security. My HR department submitted something showing my official retirement date, which helped SSA properly apply the monthly earnings test for all the months after I stopped working. It created a clean record of exactly when I transitioned from worker to retiree.
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Liam McGuire
•That's a great idea. I'll definitely ask our HR department if they can provide documentation of my retirement date. Thanks!
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NeonNomad
I went through this same thing back in 2023, and my experience might help you. What I learned is that SSA doesn't actually adjust your benefits in real-time based on what you're earning. Instead, they'll reconcile everything after the year ends when they get your actual earnings from IRS. In my case, I received my full benefits throughout the year despite going over the limit. Then in early 2024, they sent me a letter saying I had an overpayment and gave me options to repay it. I chose to have them withhold future benefits until it was paid back. So you might receive your full benefits this year, and then deal with any adjustments next year. Just be prepared for that possibility and maybe set some money aside if you think you'll go over the limit.
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Liam McGuire
•That makes sense and helps me plan. I'll probably just set aside the first few months of benefits in case I need to repay them. Better to be prepared than surprised by an overpayment notice!
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