He's 67, Still Working, And Just Sold His House — His Bank Advisor Says Claiming Social Security Now Or Lose Money Later. Is That True?

In a recent Reddit post on r/SocialSecurity, a user shared a dilemma that stirred up plenty of advice — and some confusion. The poster's friend is 67, still working full-time, and just sold his house. He hasn't started collecting Social Security yet, but a bank advisor told him he should claim now — or risk "losing money" because of a so-called "look back" tied to his high income.

Commenters quickly weighed in, but let's break down what's really going on — and whether the advisor's warning holds up.

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At 67, Is It Too Late to Wait?

No — in fact, he's right on time to make a smart decision.

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Because the man is already 67, he's reached his full retirement age, or FRA, under Social Security rules. That means he can earn as much as he wants from working — or from selling his home — and it won't reduce his monthly benefit at all.

Claiming now is an option, but not a requirement. And waiting a bit longer will actually increase his benefit thanks to delayed retirement credits, which add about 8% per year up to age 70.

Will Selling the House Hurt His Benefits?

This is where the bank advisor's claim gets shaky.

Social Security only cares about earned income — money from working or self-employment — when it comes to calculating any reductions in benefits before FRA. Once you hit FRA, those limits go away entirely.

On top of that, profits from a home sale are considered capital gains, not earned income. They don't affect your Social Security benefit calculation — and there's no "look back" rule in Social Security that would penalize him later.

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Wait, Is There Any "Look Back" Rule at All?

As some of the commenters on the thread mentioned, the "look back" the advisor mentioned probably comes from Medicaid, not Social Security. Medicaid has a five-year look-back period to see if applicants transferred assets below market value in an attempt to qualify for long-term care coverage.

That rule has nothing to do with claiming Social Security benefits.

Could Medicare Costs Go Up?

Here's the one area where income from a house sale might have an impact: Medicare.

If the sale significantly increases his taxable income this year — with the sale of his property, his annual income this year went from $87,000 to $300,000 — he could get hit with higher Medicare premiums in a couple of years. Medicare uses a two-year income "look back" to determine whether someone owes Income-Related Monthly Adjustment Amount, or IRMAA, surcharges on their premiums.

But this doesn't affect whether or not he should claim Social Security — it's a separate issue.

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Reddit Gets It Right — Mostly

Many Reddit commenters correctly pointed out that claiming Social Security right now is a choice, not an urgent requirement. There's no penalty for waiting once you hit full retirement age, and in this case, there's no financial downside to holding off — especially if he doesn't need the money yet.

The takeaway? It's worth getting advice, but make sure it's from someone who understands the rules — not just a bank advisor trying to be helpful.

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