Navigating Retirement: Claiming Social Security at Age 64
Deciding when to start receiving Social Security benefits is one of the most significant financial choices you'll make for your retirement. You can begin as early as age 62, but many consider retiring at 64. Claiming at 64 means you'll receive payments sooner, but your monthly benefit will be permanently reduced compared to waiting until your full retirement age (FRA) [3, 4]. For anyone born in 1960 or later, FRA is 67. Claiming at 64 results in receiving approximately 80% of your full benefit amount [3].
If you plan to work while receiving benefits before your FRA, you are subject to the Social Security Administration's (SSA) annual earnings test, which limits how much you can earn before benefits are temporarily reduced [1, 2].
Understanding Full Retirement Age (FRA) and Benefit Reductions
Your FRA is the age you are eligible for 100% of your Social Security benefits based on your earnings history [4]. For those born in 1960 or later, FRA is 67. Claiming at 64 is 36 months before FRA and results in a permanent 20% reduction in benefits [3]. For example, a $2,000 full benefit at age 67 would be $1,600 per month if claimed at age 64 [3]. Benefits are subject to Cost-Of-Living Adjustments (COLAs) [3].
The 2025 Social Security Earnings Test
If you are under your FRA and working while receiving benefits, your earnings are tested against an annual limit [1, 2]. For 2025:
- Under FRA for the Entire Year: The earnings limit is $23,400. For every $2 earned above this, $1 in benefits is deducted [1].
- In the Year You Reach FRA: A higher limit of $62,160 applies, considering earnings only in months before your FRA. For every $3 earned above this, $1 in benefits is deducted [1].
Once you reach your FRA, there is no earnings limit [2].
How the Earnings Test Works in Practice
If you retire at 64 at the start of 2025 with a $1,600 monthly benefit ($19,200 annually) and earn $33,400 from work, your excess earnings are $10,000 ($33,400 - $23,400) [1]. The benefit reduction would be $5,000 ($10,000 ÷ 2) [1]. The SSA would withhold benefit checks until the $5,000 is met [1]. This withheld money is not lost; at your FRA, your benefit is recalculated to credit you for the months benefits were withheld [1, 2].
Comparing Retirement Ages
Choosing when to claim involves weighing immediate needs against long-term income. Here’s a comparison based on a hypothetical full retirement benefit of $2,000 at age 67 [3, 5]:
| Claiming Age | Monthly Benefit Amount | Percentage of Full Benefit | Delayed Retirement Credits | Notes |
|---|---|---|---|---|
| 62 | $1,400 | 70% | None | Subject to the annual earnings test. |
| 64 | $1,600 | 80% | None | Subject to the annual earnings test. |
| 67 (FRA) | $2,000 | 100% | 0% | No earnings limit applies. |
| 70 | $2,480 | 124% | 24% | Maximum possible benefit; no earnings limit. |
Strategies for Managing Work and Benefits
If working after retiring at 64, consider these strategies [1, 2]:
- Monitor Income: Keep earnings below the annual limit ($23,400 in 2025) [1].
- Understand Earnings: Only wages and self-employment net earnings count towards the limit; pensions, investments, etc., do not [2].
- Utilize the Special Monthly Rule: In your first year of retirement, if you retire mid-year, a special rule may allow full checks for months you are retired and monthly earnings are below a limit ($1,950 in 2025), regardless of total annual earnings [2].
- Consider Withdrawing Application: Within 12 months of claiming, you have one chance to withdraw your application and repay benefits received, allowing you to re-apply later for a higher amount [2].
For more detailed information, consult the official Social Security Administration website [1, 2, 3, 4].
Conclusion
Retiring at 64 and claiming Social Security provides earlier income but results in a permanent reduction in your monthly benefit. If you work before reaching your FRA, the annual earnings test can lead to temporary benefit reductions if your income exceeds the limit. Understanding these rules is essential for informed financial planning in retirement [1, 2, 3].
