Retiring Midyear? This Social Security Rule Could Protect Your First Checks

Retiring in the middle of the year doesn’t always mean losing Social Security benefits. The SSA’s special monthly earnings rule may allow qualifying retirees to receive checks sooner despite higher earlier earnings. Inside Creative House/Shutterstock

Planning to retire in the middle of the year can create an unexpected concern for people who want to claim Social Security right away. You may have earned well above the annual earnings limit while working during the first half of the year, leading you to worry that your retirement benefits will immediately be reduced or withheld. Fortunately, the Social Security Administration (SSA) has a little-known provision called the special monthly earnings rule, sometimes referred to as the “first-year rule,” that may allow you to receive your monthly benefit even if your earlier wages exceeded the annual limit.

Here is what new and soon-to-be retirees need to know.