Larry, I am committed to buying your software. But I have one more question for. I am 63. The social security office told me that if I filed now and made over a certain amount, that they would take so much out of my check each month. What I am wanting to know is, when I reach FRA, would I get any of that withheld social security back? I have been told both ways. I would and I wouldn't. Could you clarify this?
Thank you very much.

Hi,

If you lose benefits due to the Social Security earnings test (https://www.ssa.gov/planners/retire/whileworking2.html), the withheld benefits are never returned to you. However, after you reach full retirement age (FRA), Social Security will recalculate your benefit rate to remove the percentage reduction that was applied for any months for which you didn't receive payment prior to FRA due to the earnings test.

For example, say that you filed for benefits at age 64, 24 months prior to FRA. A 13.33% reduction for age would be applied to your benefit rate, so if your FRA rate was $1000 your reduced rate at 64 would be roughly $866. But say that you only received half of your checks, or 12 months of early benefits due to the earnings test. Social Security would then remove half of the original percentage reduction, raising your benefit rate to around $933 effective at FRA.

So, if you live an average life span you will likely recoup roughly the amount lost to the earnings test in the form of higher monthly benefits starting at FRA. Our maximization software accounts for all of these variables, so it should definitely help you determine your best filing strategy.

Best, Jerry