Good question about the earnings test! Benefits withheld due to the earnings test are NOT permanently lost. Once you reach FRA, Social Security recalculates your benefit amount to credit you for months when benefits were withheld. Your monthly benefit amount increases to account for those months you didn't receive benefits.

As someone who went through a similar situation with my spouse, I'd recommend creating a spreadsheet to model different scenarios with your actual numbers. Don't forget to factor in cost-of-living adjustments (COLA) and potential changes to your health insurance coverage when you retire. One strategy worth considering: since your husband's PIA is higher, you might explore having him delay until 70 (getting those 8% annual increases) while you claim at 67. This could maximize your household's total lifetime benefits AND provide you with the highest possible survivor benefit if he passes first. The math gets complex, but the peace of mind knowing you've optimized your strategy is worth the effort. Also, consider consulting with a fee-only financial planner who specializes in Social Security - they can often spot opportunities that aren't obvious from online calculators. Best of luck with your planning!

I'm in a very similar boat - got laid off at 65 last year and have been wrestling with the same concerns about my Social Security projections. What I discovered after doing a deep dive into my earnings history is that the impact really depends on your specific career trajectory. Since you mentioned earning $98K recently and that your last 6-7 years were your highest, you're probably in better shape than you think. The key insight for me was realizing that Social Security uses your highest 35 years of indexed earnings - so if you already have 35 solid years in the books, a few years of lower or zero earnings at the end might not even crack into that top 35. I'd strongly recommend downloading your complete earnings record from ssa.gov and looking at year 35 on that list (your lowest "high" year). That number becomes your benchmark - any future earnings above that level will actually improve your benefit, while anything below won't help but also won't hurt if it doesn't replace a higher year. The other thing that gave me peace of mind was remembering that those delayed retirement credits from FRA to 70 are guaranteed and completely separate from the earnings calculation. Even if your base benefit drops by $50-100/month due to lower recent earnings, you're still getting that 32% boost for delaying. In my case, I ended up taking a part-time consulting role that pays about half what I used to make, but it's been perfect for this transition period. Less stress, more flexibility, and it keeps my Social Security calculation stable. Might be worth considering!

I'm new to this community but dealing with a very similar situation - got laid off at 64 and have been really worried about how it might impact my Social Security benefits. Reading through all these responses has been incredibly helpful and reassuring! What strikes me most is how many people have shared actual numbers from their own experiences - it seems like the impact is usually much smaller than we fear. The $40-75/month reductions that people mentioned are significant but not catastrophic, especially when you consider the 32% boost from delaying to 70. I'm definitely going to follow the advice about downloading my earnings history and identifying that "year 35 benchmark" that several people mentioned. Having a concrete threshold number to work with seems like it would take a lot of the guesswork and anxiety out of this situation. Thank you to everyone who shared their real experiences - it's so much more valuable than trying to interpret the SSA website on your own! This thread has given me hope that this late-career disruption doesn't have to derail my retirement plans.

This has been such an informative discussion! I'm in a similar boat - turning 62 in a few months and running a small seasonal business (landscaping/lawn care). The S-corp strategy sounds promising, but I'm curious about one specific aspect for seasonal businesses like nurseries. Since nursery income is often heavily concentrated in spring/summer months, have any of you dealt with the challenge of timing your salary payments? I'm wondering if it makes sense to spread the salary evenly throughout the year or concentrate it during the busy season when you're actually doing most of the work. Also, for those who've implemented this strategy - how long did it take to get everything set up properly? I want to make sure I have enough lead time to get the LLC converted to S-corp tax status, set up payroll, etc. before I file for Social Security benefits. The point about joining industry associations for salary data is brilliant - I never would have thought of that for justification purposes. This thread has given me a much clearer roadmap for planning my transition. Thank you all for sharing your real-world experiences!

As a newcomer to this community, I'm incredibly grateful for this detailed discussion! I'm 61 and facing a similar situation with my small pottery business. Reading through everyone's experiences has clarified so many questions I had about the earnings limit and S-corp strategy. One thing I'm still trying to understand - for those who have successfully implemented this approach, how do you handle documentation for the "reasonable salary" determination? I see mentions of industry salary surveys and local market rates, but I'm wondering if there are specific resources or databases that SSA/IRS typically find most credible? Also, I noticed several people mentioned working with accountants who specialize in both Social Security and small business taxation. That seems crucial, but how do you find someone with that specific dual expertise? Most accountants I've talked to are strong in one area or the other, but not both. Thank you all for sharing your real-world experiences - this thread has been more helpful than months of trying to research this on my own!

As someone who works in retirement planning, I want to add one more consideration that hasn't been fully addressed - the impact of Required Minimum Distributions (RMDs) from your retirement accounts. Since you're planning to work until 70, you'll likely hit age 73 (when RMDs kick in) while still earning a full salary AND collecting Social Security. This could create a perfect storm for taxes in your early 70s. You might want to consider doing some Roth conversions in the gap years between when you start SS at FRA and when RMDs begin, especially if you have traditional 401k/IRA balances. The years between 67-72 could be a sweet spot for managing your tax brackets more strategically. Also, don't forget about the Social Security "do-over" rule - if you change your mind within 12 months of filing, you can withdraw your application, pay back what you received, and reapply later. It's like a one-time reset button, though most people don't need it.

One more thing to consider that I don't think has been mentioned yet - if you have a Health Savings Account (HSA) through your employer, keep maximizing those contributions while you're still working! Once you enroll in Medicare (at 65), you can no longer contribute to an HSA, but you can still use the funds for qualified medical expenses. Since you mentioned your health isn't the greatest, having a well-funded HSA can be incredibly valuable in retirement. The triple tax advantage (deductible contributions, tax-free growth, tax-free withdrawals for medical expenses) makes it one of the best retirement accounts available. After age 65, you can even withdraw HSA funds for non-medical purposes (though you'll pay regular income tax, similar to a traditional IRA). So while you're figuring out your Social Security timing, don't forget to max out that HSA if you have access to one - it's $4,300 for individuals or $8,550 for families in 2024, plus an extra $1,000 catch-up contribution if you're over 55.

This thread has been incredibly helpful! I'm dealing with a similar situation where I'm worried about my credit count as I approach retirement. Reading everyone's experiences and advice has given me a much better understanding of what to do if this happens to me. @Cameron - I really hope your in-person visit goes well! It sounds like you're going in well-prepared with all the specific terminology and documentation suggestions from everyone here. The "earnings discrepancy investigation" approach seems like exactly what you need. One thing I wanted to add that might help - if you run into resistance at your local office, you can also contact your Congressional representative's office. They have caseworkers who specialize in helping constituents with federal agency issues like this. Sometimes having a Congressional inquiry can help move things along faster, especially if you're getting the runaround. Also, definitely document everything during your visit like others suggested. Take photos of any documents they show you if they'll allow it, and get names and employee IDs of everyone you speak with. You shouldn't have to fight this hard for credits that were legitimately showing on your account, but it sounds like persistence pays off based on everyone's success stories here. Looking forward to hearing your update!

I'm so sorry you're dealing with this incredibly frustrating situation! As someone who works in benefits administration (though not for SSA), I can tell you that system errors and misclassifications definitely happen, especially with complex employment histories like yours. Based on what you've described, I'd strongly recommend documenting absolutely everything before your visit. In addition to the printed statements everyone mentioned, try to gather: - Any old pay stubs that show FICA/Social Security taxes being withheld - Your Social Security earnings history from ssa.gov (print the detailed version) - Documentation of when you retired from the county hospital system When you go in person, be very specific about what you need. Don't just say "my credits are wrong" - explain that you have documentation showing 42 credits in February that dropped to 33 by last week, and you need them to identify exactly which quarters were removed and why. If the first person you speak with can't help, politely but firmly ask to speak with a supervisor or someone who handles "complex earnings record reviews." Sometimes frontline staff aren't trained to handle cases involving government pensions and WEP/GPO issues. Your situation is definitely fixable - hang in there and don't let anyone dismiss your concerns. You have proof that something changed in their system, and they owe you a proper explanation and correction.