I was approved for Social Security but told it’s suspended because I’m still working – how do I “prove” I stopped?

Many people look forward to being able to collect Social Security in retirement. But actually, you don’t necessarily have to wait until you retire to start getting benefits.

You’re allowed to sign up for Social Security once you turn 62. But what this means is that if you’re still working at the time, you may still be entitled to collect a monthly benefit.

However, if you claim Social Security before reaching full retirement age (FRA), you’ll be subject to an earnings-test limit. And exceeding it will mean having a portion of your Social Security checks withheld.

If you exceed the earnings-test limit by quite a large amount, it’s possible that you’ll have your entire Social Security check withheld until you stop working or reach FRA. And that may be what’s happening to this Reddit poster.

A frustrating situation

In this post, we have a retiring teacher who’s expecting Social Security. She got a notice stating that she was approved to collect benefits, but she wasn’t given any indication as to when her monthly payments would start. She was also told she would have to prove that she was no longer working to get any money.

It shouldn’t be too difficult for the poster to prove that they’re not working. They can get a letter from their employer stating that their contract has been terminated or not renewed.

The bigger question is how long the contract actually lasts, and whether the poster’s pay is high enough to lose out on her complete Social Security benefits until it’s fully over.

It’s not uncommon for teachers to be paid through the end of July or August based on their contracts. So even though the poster may be retiring this month, it could be that they’re getting paid for another three months after their last day in the classroom.

If the poster hasn’t reached FRA, they’re subject to the earnings-test limit. And if their monthly pay is high enough these next few months, it could wipe out their Social Security checks.

But that doesn’t mean the poster is forfeiting that money. Social Security benefits that are withheld for exceeding the earnings-test limit are repaid to recipients once they reach FRA. So the poster doesn’t have to worry about giving up the money. They just might have to wait longer than they want to collect it.

It’s important to know the rules

Social Security is an extremely complex program. So whether you’re in a situation like this poster or you’re simply gearing up to claim benefits, it pays to read up on how things work and understand your options for filing.

To that end, working with a qualified financial advisor could be extremely helpful. It’s the job of these professionals to know the ins and outs of Social Security and share that knowledge so that you understand how those benefits fit into your retirement income.

In the situation above, a financial advisor would likely be able to help the poster navigate things — and perhaps avoid the confusion and frustration they’re no doubt experiencing by being in the dark.

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