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!

One thing to also consider is that working past FRA gives you more flexibility in retirement planning. I'm in a similar situation - 67 next month and planning to work another 2-3 years. Beyond the benefit increases, I'm thinking about how having those extra years of salary will help me transition more gradually into retirement. You could potentially reduce your hours or take a lower-stress job later while still building up your SS benefits. Plus, staying on your employer's health insurance for a few more years before switching to Medicare supplements can be valuable too. Just another angle to think about when weighing whether it's "worth it" financially!

I'm approaching 67 in a few months and this discussion is really timely for me! I've been wondering about the same thing. My situation is a bit different - I'm making about $48k annually and have been with the same company for 15 years. From what I'm reading here, it sounds like the key is really looking at your earnings history on the SSA website to see if you have low-earning years that would get replaced. I checked mine and I have about 4 years in my early 20s where I made less than $15k, plus a few years when I was part-time while raising kids. So it seems like continuing to work could potentially give me better increases than someone who already has 35 solid earning years. The health insurance point that Carmen made is huge too - my employer covers about 80% of my premium and I know Medicare supplements can get expensive. Has anyone here done the math on how much they save by staying on employer insurance vs switching to Medicare at 65?

As someone new to this community, I've been lurking and reading through discussions like this while trying to figure out my own retirement planning. I'm still a few years away from FRA but this conversation has been incredibly helpful! I had no idea that working past FRA could actually increase your Social Security benefits through recalculations - I thought once you hit FRA, that was it. The point about checking your earnings history on my.ssa.gov to see if you have low-earning years that could be replaced is brilliant advice. It seems like the decision really comes down to your individual situation - your earnings history, health insurance costs, and how much you actually need/want to keep working. For anyone else reading this who's new to Social Security planning like me, this thread has been a goldmine of real-world experiences and practical advice. Thanks to everyone who shared their actual numbers and experiences!

Just wanted to jump in as someone who's been navigating this same decision! I'm 66 and 8 months, so hitting FRA in a few months, and I've been weighing whether to keep working my $42k/year job. After reading through everyone's experiences here, I think I have a clearer picture now. I checked my SSA earnings record like Savannah suggested, and I have about 8 years of really low earnings from when I was in school and raising young kids. So it sounds like I might see better increases than average by replacing those years with current earnings. The health insurance factor is huge for me too - my employer plan is really good and way cheaper than what I'd pay for Medicare supplements. I'm leaning toward working at least 2 more years now, especially after seeing the real numbers people have shared. It's so helpful to hear from folks who've actually been through this rather than just trying to figure it out from SSA's confusing website! Thanks everyone for sharing your experiences.

As someone who just discovered this community, I've been reading through all these responses and they're incredibly helpful! I'm about 18 months away from my FRA and earning around $38k annually. What strikes me most is how much the individual earnings history matters - it's not a one-size-fits-all situation. I just created my SSA account and found I have about 12 years of very low earnings (under $10k) from when I was working part-time jobs and taking care of family. Based on what everyone's shared here, it sounds like I might be in a good position to see decent increases by working a few more years past FRA. The health insurance considerations are eye-opening too - I hadn't factored that into my calculations at all. Really appreciate everyone sharing their real experiences and actual dollar amounts. It's so much more valuable than the generic advice you find elsewhere!