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Social Security full retirement age mid-year


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An individual's DOB is 7/16/55, he turns age 66 this year.  I think SS full retirement age for those born in 1955 is 66 and 2 months.  So September 2021 would be full retirement age and assuming he wants to start his benefits at this time the first payment would be in October.   Is this correct?

How does this mid-year benefit start coordinate (or does it) with the earnings cap in this first year?   This person earns about $6,750 per month, so as of Sept 1 earnings will be $54K YTD.  He plans to continue working.  I know after full retirement age there is no earnings cap but I don't know how they track/measure/compute this for a mid year benefit start.

I've tried to figure this our reading info from SSA but nothing really seems to be on-point and it is confusing to say the least.  It's hard to research (at least so far) because so much is written about the earnings cap and early benefit start.   I'm not a SS expert at all.  Thanks for any help.

I carry stuff uphill for others who get all the glory.

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Perhaps this will help? (I'm not an expert  either...)

In the year you reach full retirement age, we deduct $1 in benefits for every $3 you earn above a different limit. In 2021, this limit on your earnings is $50,520. We only count your earnings up to the month before you reach your full retirement age, not your earnings for the entire year.

If your earnings will be over the limit for the year and you will receive retirement benefits for part of the year, we have a special rule that applies to earnings for one year. The special rule lets us pay a full Social Security check for any whole month we consider you retired, regardless of your yearly earnings.

Read our publication, “How Work Affects Your Benefits,” for more information.

When you reach full retirement age:

  • Beginning with the month you reach full retirement age, your earnings no longer reduce your benefits, no matter how much you earn.
  • We will recalculate your benefit amount to give you credit for the months we reduced or withheld benefits due to your excess earnings.
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Yeah, I read that, but then it seems they contradict it at the end.  Or they give it back?  The next year?   Seems like it would be simpler to just delay from Sept - January 22 and get a 2.67% increase in the monthly benefit. 

Thanks. 

I carry stuff uphill for others who get all the glory.

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