Working until age 65 in December - will SS retirement benefits be reduced if I start payments in January?

You're actually fine to work through December! Since you'll be starting benefits in January 2025, your December 2024 earnings won't affect your Social Security retirement benefits at all. The earnings limit only applies once you're actually receiving benefits. Also, since you're turning 65 in December 2024, you'll reach your Full Retirement Age (FRA) at 66 and 10 months (assuming you were born in 1958). While you're still under FRA when benefits start, the earnings limit for 2025 would only apply to earnings you make WHILE receiving benefits (January 2025 onward). Work all you want in December - it won't impact your January payment!

i had this exact same question last year!!! worked til december then started SS in january. nobody told me anything about penalties and i got my full payment no problem

Let me clarify something important here. The previous responses are mostly correct, but there's a nuance about the earnings test worth understanding. The annual earnings test looks at your TOTAL yearly earnings in the year you're receiving benefits. In 2025, assuming you start benefits in January, the earnings limit for someone under Full Retirement Age (FRA) will likely be around $22,300 (it's $21,240 for 2024, with annual adjustments). If you earn over that amount in 2025 while receiving benefits, SSA will withhold $1 in benefits for every $2 you earn above the limit. Your December 2024 earnings don't count toward this. But here's where it gets interesting - the year you reach FRA, the limit is much higher (approximately $59,520 in 2024) and the withholding is only $1 for every $3 above the limit. And this only applies to earnings in the months BEFORE the month you reach FRA. Since your FRA is 66 and 10 months, you'll have more flexibility with the earnings test in the year you reach that age. So yes, work through December 2024, and just be mindful of the 2025 earnings limit if you plan to continue working while collecting benefits before reaching your FRA.

TRUST ME, get everything in writing!!! I thought I was fine but then got a letter saying my benefits were reduced because of "excess earnings" and it took MONTHS to fix. Social security reps told me 3 different things. The whole system is a MESS!!! I'd call them directly to confirm before deciding.

my sister had this exact issue!!! but she was 64 not 65 so maybe different rules apply?? she had to pay back some benefits but i think it was because she made like 100k that year

So wait im confused... does this mean if i start my ss benefits in January too, I can work all of December without any impact? What if I'm only 63 though? Is there a special rule just for people turning 65 in December or does this apply to everyone?

Thank you all for the responses! I called SSA this morning using that Claimyr service someone mentioned (got through in about 3 minutes!) and confirmed that I can indeed work through December without it affecting my January payment. The representative explained that since December 2024 and January 2025 are in different tax years, they're treated separately. I'm going to work through December as planned and will start receiving my retirement benefits in January. Since I'm fully retiring at that point, I won't have any earned income in 2025 that would trigger the earnings limit. I appreciate everyone's help in understanding this confusing topic!

Congratulations on getting it sorted out! This is such a common source of confusion, and you're absolutely right that the different tax years is the key factor here. It's great that you were able to get official confirmation from SSA directly. For anyone else reading this thread with similar questions, the main takeaway is: earnings in the calendar year BEFORE you start receiving benefits don't count toward the earnings test. The annual earnings limit only applies to income earned while you're actually receiving Social Security benefits. Thanks for following up with the resolution - it'll definitely help other community members who find this thread later!

This is such a helpful thread! I'm in a similar situation but won't be starting benefits until I'm 67 (my full retirement age). It's good to know that the calendar year separation rule applies regardless of age. One thing I'd add for anyone reading this - if you're planning to work part-time after starting benefits and you're under your FRA, make sure to track your earnings carefully throughout the year. The SSA earnings test is based on your total annual earnings while receiving benefits, not monthly amounts. So even if some months you earn very little, it's the yearly total that matters. Also, keep good records of everything! As some folks mentioned, SSA can sometimes make mistakes, and having documentation of your earnings and benefit start dates can save you a lot of headaches later.

As someone who just went through the Social Security application process myself, I wanted to add a few practical tips that might help others in similar situations: 1. When you call SSA (whether through regular channels or services like Claimyr), have your Social Security statement handy along with your planned retirement date. The representatives can walk you through scenarios specific to your birth year and planned benefit start date. 2. If you're unsure about any aspect of the earnings test, you can also create a my Social Security account online at ssa.gov. There's a retirement estimator tool that can help you understand how different earnings scenarios might affect your benefits. 3. For anyone still working while collecting benefits, SSA has a form (SSA-7162) where you can estimate your annual earnings. This helps them adjust your monthly benefit payments if needed, rather than having to pay back a large amount at the end of the year. The calendar year rule that everyone's discussing is definitely the key here - it's one of those Social Security rules that seems confusing at first but makes perfect sense once you understand the logic behind it. Great question and thanks for sharing the resolution!

This has been such an informative discussion! As someone who's just starting to navigate the Social Security system myself, I'm amazed at how complex these rules can be, but also how helpful this community is in breaking them down. The key takeaway I'm getting is that the calendar year separation is really the crucial factor here - December 2024 earnings won't affect January 2025 benefits because they're in different tax years. It's one of those things that seems obvious once explained, but definitely not intuitive when you're first trying to figure it all out. I'm particularly grateful for all the practical tips people have shared - from using services like Claimyr to get through to SSA quickly, to keeping detailed records, to using the online tools at ssa.gov. These real-world insights are so much more valuable than trying to decipher the official SSA publications on your own. Thanks to everyone who shared their experiences and expertise. This thread is going to be a goldmine for anyone else facing similar retirement timing questions!

Wow, what an incredibly thorough and helpful discussion! As someone who's still several years away from retirement but starting to think about these issues, this thread has been absolutely invaluable. The calendar year rule really is the key insight here - it's so logical once explained but definitely not something I would have intuited on my own. I love how this community came together to not only answer the original question but provide so many practical resources and real-world tips. The recommendations for Claimyr, the SSA online tools, keeping detailed records, and having your Social Security statement ready when calling are all going into my retirement planning notes. It's clear that navigating Social Security requires both understanding the rules and having good strategies for actually getting reliable information from the system. Thanks to everyone who contributed their knowledge and experiences - this is exactly the kind of community support that makes these complex government programs more manageable for regular people!