How much will my Social Security benefits increase each year working after FRA with $40k salary?

The SSA will automatically recalculate your benefits each year based on your additional earnings. For someone earning $40k, you can expect roughly a $25-40 monthly increase for each additional year of work after FRA, depending on your past earnings history. The increase comes from replacing lower-earning years in your 35-year calculation period with your current higher earnings. If you've already had 35 years of similar or higher earnings, the increase might be minimal.

I started collecting at FRA and kept working part time. My benefit went up like $18 the first year and $23 the second year. Not life changing but hey its something. Your milage may vary of course.

The annual recalculation after FRA depends heavily on your lifetime earnings record. For accurate estimates, I'd suggest creating an account at my.ssa.gov if you haven't already. Look at your earnings history - specifically if you have any zero or low-earning years in your 35-year calculation period. If you do, replacing those years with $40k earnings will give you more significant increases than if all 35 years already show substantial earnings. If you've consistently earned around $40k or more for 35+ years already, continuing to work might only give minimal increases (maybe $10-20 monthly per additional year). If you have several low-earning years being counted, the increase could be more substantial ($40-60 monthly per year). The SSA will automatically recalculate your benefit each year after you file your tax return, and any increase is retroactive to January of that year.

Not sure if this is helpful, but I talked to my financial advisor about this exact situation. He said another benefit of continuing to work that people often forget is that while your SS benefit might only go up a modest amount, you're also delaying drawing down your retirement savings. So the financial benefit is actually twofold - slightly higher SS for life PLUS more savings remaining intact. Just something else to consider in your decision!

My uncle did this and his check only went up like $12 after working a whole year so don't get your hopes up too much lol

DON'T WASTE YOUR TIME trying to get ACTUAL NUMBERS from the SSA!!! I've been trying for 3 MONTHS to get someone to explain my own recalculation after working 2 years past FRA. Called DOZENS of times, always disconnected or on hold FOREVER!!! When I finally got through, the agent gave me THREE DIFFERENT ANSWERS in the same call!!! The whole system is BROKEN!!!

I'm in a similar boat - just started collecting at FRA (66+2mo for me) and still working. My first annual increase was about $31/month based on my $45k salary. My neighbor who made about $70k got almost $50/month increase. From what I understand, it really depends on what years get replaced in your calculation.

wait Im confused dont u get penalized for working while collecting SS??? or is that only if ur under FRA??

Thanks everyone for the insights! Based on what you've all shared and checking my earnings record, I think I'll see modest increases of maybe $25-35 monthly for each additional year I work. Not huge, but combined with preserving my savings longer, it might make sense for me to work at least another year or two. Really appreciate all the input!