Working while collecting Social Security at 64 - which earnings limit applies in 2025?

if your still working full time at that salary you shouldnt be taking ss at all before FRA. they'll take back $1 for every $2 you earn above like $22,500 (don't know exact 2025 limit). with your salary you'd lose most of your benefits anyway so why bother filing early??

The annual earnings limit would apply for all of 2025, with one important exception. The monthly earnings test can apply during the first year you claim benefits. However, there's a key requirement: it only applies in months where you earn below the monthly limit AND are considered "retired" for Social Security purposes. For 2025, the projected annual limit will be around $24,000 for those below FRA (based on COLA estimates from the 2024 limit of $22,320). The monthly limit would be approximately $2,000. With earnings of $72,000, you'd be subject to having $1 withheld for every $2 you earn above the annual limit. This would significantly reduce or eliminate your benefits for 2025. The monthly earnings test won't help in your situation unless you substantially reduce your work hours or change to a lower-paying job for some months in 2025. Otherwise, the annual test applies and you'd likely see most benefits withheld.

I see soooo many people get caught in this trap! The SSA doesn't explain it well AT ALL. The monthly earnings test sounds great in theory but there are STRICT rules about when you can use it. I filed at 63 while still working and ended up having to PAY BACK $7,600 in benefits because I misunderstood how it worked. It was a NIGHTMARE dealing with that overpayment notice. My advice? Unless you're ACTUALLY cutting back hours significantly or changing jobs, just wait until either you reduce your income below the limit or until your FRA. Otherwise you're just creating a paperwork headache for yourself and potentially setting yourself up for an overpayment situation.

The monthly earnings test is available in your first year of retirement, but many SSA claims reps don't even understand how it works correctly. It applies ONLY if you are considered "retired" in a month, meaning your earnings are under the monthly limit AND you aren't performing "substantial services in self-employment." Even with regular employment, they look at whether your work pattern has changed. If you're working the same job, same hours as before filing, they rarely consider you "retired" for monthly test purposes. Given your $72k salary, that's about $6,000/month. The monthly limit for 2025 will be around $2,000. Unless you reduce your work to part-time, you won't benefit from the monthly test. I recommend using SSA's earnings test calculator on their website to see exactly how much would be withheld in your specific situation: https://www.ssa.gov/benefits/retirement/planner/calculator.html

Have you considered waiting until you reach FRA to claim? At 67, there would be NO earnings limit whatsoever. You could earn $72,000 or even $720,000 and still collect your full benefit amount. Given your current salary, claiming at 64 would likely result in most benefits being withheld through the earnings test. Something else to consider - any benefits withheld due to the earnings test aren't truly "lost." Once you reach FRA, SSA recalculates your benefit amount to give credit for months when benefits were withheld. But the recalculation rarely makes up for the permanent reduction from claiming early. I'd recommend calling SSA directly to discuss your specific situation, but in my experience, with earnings as high as yours, filing before FRA while continuing to work full-time doesn't make financial sense.

Trying to reach the SSA is a nightmare these days! I had the same problem and spent literally 4 hours on hold one day only to have the call drop. After trying for 2 weeks, I finally used this service called Claimyr (claimyr.com) that got me through to a live person in under 20 minutes. They have a video showing how it works: https://youtu.be/Z-BRbJw3puU It was worth it to finally get answers about my own earnings limit questions. The agent I spoke with was able to look at my specific work history and explain exactly how the earnings test would apply in my case.

Yes! The agent explained that for the monthly test to apply in your first year of benefits, you need to be under the monthly limit ($2,000 in 2025) AND have a pattern of work that shows you've actually retired or significantly reduced work. Since I was working the same job with the same hours, they said I couldn't use the monthly test - the annual test applied for the whole year. When I called, I had all my estimated earnings written down and they ran the calculations for me. Super helpful! Also ask them about how the earnings test affects spousal benefits if your spouse might claim on your record.

this stuff is why the system is so messed up!! why make it so complicated?? my brother just turned 65 and hes waiting til 67 to collect cuz of all this earnings limit headache. seems like a scam to keep people from getting benefits they paid into their whole life

Thank you all for the helpful advice! After reading everything, I think my best option is to either wait until FRA or coordinate my Social Security filing with my reduced work hours through the phased retirement program. I'll probably use that Claimyr service to get through to SSA and discuss my specific situation. If I do the phased retirement starting in July 2025 (which would drop my income to about $43,000 for the year), would I still lose most of my benefits? Or would that lower income help with the earnings test?