Monday, July 7, 2025
  • Login
Bullnews - Your Daily Source for Financial Insights, Stock Market Trends & Investment News
Advertisement
  • Home
  • USA
  • World
  • Investing
  • Alternative Investing
  • Personal Finance
  • Opinion
  • Retirement
  • ETFs
  • FX
  • Crypto
No Result
View All Result
  • Home
  • USA
  • World
  • Investing
  • Alternative Investing
  • Personal Finance
  • Opinion
  • Retirement
  • ETFs
  • FX
  • Crypto
Bullnews - Your Daily Source for Financial Insights, Stock Market Trends & Investment News
No Result
View All Result
Home World News

Possible Financial Losses for Early Social Security Claimants

by bullnews
March 8, 2025
in World News
Reading Time: 2 mins read
0 0
0
Possible Financial Losses for Early Social Security Claimants
0
SHARES
2
VIEWS
Share on FacebookShare on Twitter


Claiming Social Security benefits as early as possible can be tempting. Starting at age 62 means you get checks over a longer period, which could even let you retire sooner when combined with your savings. However, jumping at the first chance to claim these benefits comes with its own set of pitfalls.

When you apply at 62, you risk seeing your monthly payments reduced by as much as 30 percent. There’s also a little-known rule that might end up costing you even more.

### Working While Claiming Social Security Could Surprise You

In 2023, about a quarter of people chose to start their Social Security benefits at 62, making it a popular choice. Nevertheless, many Americans are opting to retire later. You can indeed claim benefits while still in the workforce.

But here’s the catch: the earnings test. If your job income surpasses certain limits, you’ll see a reduction in your benefit checks. In 2025, should you be under your full retirement age (FRA) for the full year, you’ll lose $1 in Social Security for every $2 earned over $23,400. Currently, for most workers, FRA is 67, but can be as young as 66 for some older retirees.

If 2025 is the year you hit your FRA, the penalty lessens—you only lose $1 for every $3 made over $62,160, but only if your earnings surpass this amount before reaching FRA.

For those with higher incomes, it might mean that in some months, you won’t receive a check at all because of the earnings test. It can be a frustrating experience, particularly if you’re relying on those checks for expenses. But there is light at the end of the tunnel.

Once you reach your FRA, the government stops penalizing your earnings from work, no matter your salary. They’ll also adjust your future benefits upward to compensate for any funds previously withheld. This adjustment could mean a significant increase in your benefits, especially if substantial sums were held back earlier.

### How to Sidestep the Earnings Test

Recovering withheld benefits at FRA is reassuring, but remember, it won’t be as much as if you’d delayed claiming until the FRA in the first place. The earlier you claim, the smaller your checks will be.

If you’re still on the fence about claiming and don’t need the money immediately, it might be worth holding off until you either retire fully or reach FRA. This approach spares you from the penalty associated with early claiming and the headaches of the earnings test.

Another strategy is cutting back on work hours to lower your earnings. This gradual transition into retirement lets you supplement your decreased wages with Social Security, avoiding earnings test penalties by keeping yearly income under $23,400.

Sometimes, thwarting the earnings test entirely isn’t possible. But even in these instances, you’ll see withheld amounts returned when you hit FRA, and annual increases in test limits mean that even if you lost benefits one year, you might not in future years.

Tags: ClaimantsEarlyFinancialLossesSecuritySocial
Previous Post

Trump Temporarily Lifts Tariffs on USMCA Goods from Mexico and Canada

Next Post

Crypto Analyst Predicts Bullish Surge: AAVE Poised to Reach $360?

Similar Stories

Retiring in 2030? Essential Insights Before You Start Social Security Collection

Retiring in 2030? Essential Insights Before You Start Social Security Collection

July 6, 2025
Trump’s Tax Bill Grants Largest Cuts to Top 1% in These States

Trump’s Tax Bill Grants Largest Cuts to Top 1% in These States

July 3, 2025

Powell Indicates Tariffs Prevented Potential Fed Rate Cuts

July 1, 2025

Why SoFi Shares Reached a 52-Week High Today

June 30, 2025

Iran Conducts Funeral Procession for Senior Commanders Killed in Israeli Strikes

June 28, 2025

How the Stock Market Rebounded to a New Record Amidst Ongoing Concerns

June 26, 2025
Next Post
Crypto Analyst Predicts Bullish Surge: AAVE Poised to Reach 0?

Crypto Analyst Predicts Bullish Surge: AAVE Poised to Reach $360?

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

  • Trending
  • Comments
  • Latest
Trump’s Bold and Impactful Cabinet Selections Are Just What America Needs – News-Herald

Trump’s Bold and Impactful Cabinet Selections Are Just What America Needs – News-Herald

November 22, 2024
The Guardian’s Perspective: Global Justice at a Turning Point – The Imperative of Accountability for War Crimes | Editorial

The Guardian’s Perspective: Global Justice at a Turning Point – The Imperative of Accountability for War Crimes | Editorial

November 22, 2024
How Are U.S. Tariffs Impacting Your Business? Share Your Experience with Us.

How Are U.S. Tariffs Impacting Your Business? Share Your Experience with Us.

May 7, 2025
8 Updates to CPF in 2025

8 Updates to CPF in 2025

December 15, 2024
Trump’s Bold and Impactful Cabinet Selections Are Just What America Needs – News-Herald

Trump’s Bold and Impactful Cabinet Selections Are Just What America Needs – News-Herald

0
Don’t Let Political Turmoil Distract from the Climate Crisis

Don’t Let Political Turmoil Distract from the Climate Crisis

0
Democrats Challenge Trump Policies with Resistance Tactics

Democrats Challenge Trump Policies with Resistance Tactics

0
The Guardian’s Perspective: Global Justice at a Turning Point – The Imperative of Accountability for War Crimes | Editorial

The Guardian’s Perspective: Global Justice at a Turning Point – The Imperative of Accountability for War Crimes | Editorial

0
Newsquawk Preview: Upcoming Highlights – Trade Deadlines, FOMC Minutes, RBA, RBNZ, and Canadian Jobs Report

Newsquawk Preview: Upcoming Highlights – Trade Deadlines, FOMC Minutes, RBA, RBNZ, and Canadian Jobs Report

July 6, 2025
Rising Bitcoin Exchange Outflows: Is Investor Confidence Reaching New Heights?

Rising Bitcoin Exchange Outflows: Is Investor Confidence Reaching New Heights?

July 6, 2025
Retiring in 2030? Essential Insights Before You Start Social Security Collection

Retiring in 2030? Essential Insights Before You Start Social Security Collection

July 6, 2025
LACMA Deserves More Recognition Than It’s Receiving from the L.A. Times

LACMA Deserves More Recognition Than It’s Receiving from the L.A. Times

July 6, 2025
Bullnews - Your Daily Source for Financial Insights, Stock Market Trends & Investment News

Bullnews - Your Daily Source for Financial Insights, Stock Market Trends, Investment News, Cryptocurrancy News and More!

Categories

  • Alternative Investing
  • Crypto
  • ETFs
  • FX
  • Investing
  • Opinion
  • Personal Finance
  • Retirement
  • US News
  • World News

Site Map

  • DMCA
  • Disclaimer
  • Cookie Privacy Policy
  • Privacy Policy
  • Terms and Conditions
  • Contact us

Recent News

  • Newsquawk Preview: Upcoming Highlights – Trade Deadlines, FOMC Minutes, RBA, RBNZ, and Canadian Jobs Report
  • Rising Bitcoin Exchange Outflows: Is Investor Confidence Reaching New Heights?
  • DMCA
  • Disclaimer
  • Cookie Privacy Policy
  • Privacy Policy
  • Terms and Conditions
  • Contact us

Copyright © 2025 Bull News - All Rights Reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Home
  • USA
  • World
  • Investing
  • Alternative Investing
  • Personal Finance
  • Opinion
  • Retirement
  • ETFs
  • FX
  • Crypto

Copyright © 2025 Bull News - All Rights Reserved.