Social Security earnings indexing after 60 - will my higher income now hurt my retirement benefit?

You're actually in a good position! Indexing stopping at age 60 won't hurt you - it can help. Here's how it works: SSA indexes your earnings up to age 60 to account for wage inflation over time. After 60, your actual earnings count at face value. Since you're earning more now than before, these higher post-60 earnings can still increase your benefit by replacing lower earning years in your calculation. SSA uses your highest 35 years of earnings to calculate your benefit. If you're earning more now than in some of those 35 years (after indexing), working longer will increase your benefit. The fact that these higher earnings aren't indexed doesn't matter if they're replacing lower indexed earnings from your past.

Don't stress about this! You're actually benefiting from continuing to work. I was in a similar situation - worked part-time for years then got a great full-time position at 61. When I checked my SS statement online, my estimated benefit kept increasing each year I worked past 60. The indexing stopping at 60 is actually not a problem when your current earnings are higher than earlier years. I had so many low-earning years that getting replaced with my new higher income made a BIG difference - about $340 more per month by working until 65 instead of taking benefits at 62. Have you created an account at ssa.gov to see your earnings history? It shows all your years and which ones count in your top 35. Really helpful!

this whole social security system is rigged against people who work hard later in life!!! i heard from my brother in law that the government CAPS your earnings after 60 on PURPOSE to make you retire earlier. they dont want to pay you what you DESERVE for your hard work. i'm 63 and still working and they're PUNISHING me by not counting my best earning years the same as my earlier years. RIDICULOUS!!! why should dollars earned at 59 be worth more than dollars earned at 61??? just another way the govt manipulates the system.

I dealt with this exact question when helping my sister plan her retirement. The indexing stopping at 60 is actually not impacting you negatively if your current earnings are higher than your earlier years after adjustment for inflation. Here's a concrete example: Let's say one of your indexed years from 1990 works out to $42,000 after indexing, but you're making $72,000 now. Even though that $72,000 isn't indexed, it's still higher than the indexed amount from 1990, so it will replace that year in your calculation and increase your benefit. The best thing you can do is create an account at ssa.gov and look at your earnings record. They show both your actual earnings and your indexed earnings. Compare your current salary to your 35 highest indexed years - if current earnings are higher than some of those years, working longer will help your benefit calculation.

im confused too lol... does ss look at ur whole life or just last few years? my cousin said they only count the last 5 years but that doesnt sound right?? id be screwed if thats true cuz i had to go part time last year for health reasons

After struggling to get through to SSA for weeks about this exact question (kept getting disconnected after 2+ hour waits), I finally tried using Claimyr (claimyr.com) and actually got through to a real person at Social Security in about 20 minutes. They explained that my post-60 higher earnings were definitely increasing my benefit amount by replacing lower years in my work history. You can see how it works in their video demo: https://youtu.be/Z-BRbJw3puU The agent explained that indexing just adjusts older earnings to account for wage inflation, but after 60, actual dollar amounts are used. If those actual amounts are higher than some of your indexed amounts from earlier years, you'll see a benefit increase by continuing to work.

My husband was worried about this too! He's working now at 63 making more than ever before. We were confused about the indexing until we met with a financial advisor who showed us the calculation. Basically if you have any low-earning years in your 35-year calculation (like years you worked part-time or took time off), your higher earnings now will help even without being indexed.

Thank you everyone for all the helpful explanations! I feel much better about my situation now. I'm going to continue working at least until my Full Retirement Age (66 and 10 months) since my current higher earnings will replace some of my lower indexed years from when I was working minimal hours during my children's early years. I also learned a lot about how the calculation actually works from reading these responses and checking my own earnings record. It seems like the 35-year calculation with earnings indexed to age 60 is actually pretty fair overall, especially for people like me with variable work histories.

Great question! I was in almost the exact same boat - worked part-time for years then got a significant salary bump after 60. The key thing to understand is that indexing stops at 60, but that doesn't hurt you when your current earnings are higher than your historical ones. Think of it this way: SSA takes your highest 35 years of indexed earnings (for years before 60) and actual earnings (for years after 60). If your current $72k is higher than some of those 35 years even after they've been indexed for inflation, then continuing to work will increase your benefit. Since you mentioned working part-time for 40+ years, you likely have some lower-earning years in that calculation that your current higher salary can replace. I'd definitely recommend staying until at least your full retirement age if you can - not only will your higher earnings potentially boost your benefit calculation, but you'll also avoid the earnings test and get delayed retirement credits if you wait past FRA. The SSA.gov account is definitely worth setting up to see exactly how your earnings history looks!

I'm glad you found this discussion helpful! As someone who works in benefits counseling, I see this confusion about post-60 earnings and indexing all the time. You're absolutely right to keep working - those higher earnings at $72k will almost certainly boost your benefit by replacing lower years from your part-time work history. One additional tip: since you mentioned being 62 next month, remember that if you do decide to claim benefits before your full retirement age while still working, there's an earnings limit ($22,320 for 2024) that could temporarily reduce your benefits. But any benefits withheld due to the earnings test get added back to your monthly payment once you reach full retirement age, so it's not permanently lost. Given your significant income increase and the fact that you're enjoying your work as department head, working until at least your full retirement age (probably around 66-67 for you) seems like it would maximize both your Social Security benefit and your overall financial security. Plus, every year you delay past full retirement age until 70 adds about 8% to your monthly benefit!

As a newcomer to this community, I just want to say how helpful this entire discussion has been! I'm 58 and approaching some of these same decisions, so reading about everyone's real experiences with post-60 earnings and Social Security calculations is incredibly valuable. What really stands out to me is how the indexing system actually seems pretty fair when you understand it - it protects the value of your earlier earnings from inflation while still allowing higher current earnings to boost your benefit. The fact that so many of you saw your benefits increase by working past 60 is really encouraging. I especially appreciate the practical tips about creating the ssa.gov account to see your actual earnings history and the advice about the earnings test if claiming benefits early while still working. This kind of peer-to-peer knowledge sharing is exactly what makes communities like this so valuable when trying to navigate these complex government programs. Thanks to everyone who shared their experiences - it's clear that continuing to work with higher earnings past 60 can definitely be beneficial rather than harmful to your Social Security benefits!

As someone who just turned 61 and went through this exact worry last year, I can confirm what everyone else is saying - higher post-60 earnings absolutely can increase your benefit! I was terrified that my best earning years "wouldn't count" because of the indexing cutoff, but it turns out that was completely backwards thinking. The key insight that helped me was realizing that indexing is meant to help your OLD earnings compete with your NEW earnings, not the other way around. When your current earnings are genuinely higher than what you made decades ago (even after accounting for inflation through indexing), those current earnings win and boost your calculation. I've been tracking my estimated benefit on ssa.gov monthly, and it's gone up every single month I've continued working at my higher salary. The system really does reward continued work when you're earning more than your historical average. For anyone else worried about this - definitely check your actual earnings record online. Once you see your 35-year calculation and compare it to your current income, it becomes crystal clear whether continuing to work will help (and for most people with variable work histories, it absolutely will).

As a newcomer to this community, I want to thank everyone for this incredibly informative discussion! I'm 55 and starting to think seriously about retirement planning, and this conversation has cleared up so much confusion I had about Social Security calculations. What really resonates with me is how many people here discovered that their fears about post-60 earnings were completely unfounded. The consistent theme seems to be that if you're earning more now than you did in earlier years (even after those earlier years are indexed for inflation), continuing to work will help your Social Security benefit, not hurt it. I love the practical advice about creating an ssa.gov account to actually see your earnings history and the 35-year calculation in action. That seems like such a better approach than trying to guess or worry about hypothetical scenarios. For those of us still a few years away from 60, it's encouraging to know that the system is designed to be fair and that career growth later in life can actually be financially beneficial for Social Security purposes. This discussion has definitely motivated me to stay engaged in my career and not assume I need to start winding down just because I'm approaching 60. Thanks to everyone who shared their real experiences - this kind of peer knowledge is invaluable!

As a newcomer to this community, I'm so grateful to have found this detailed discussion! I'm 63 and have been agonizing over this exact issue for months. Like many others here, I had completely misunderstood how the indexing works and was convinced that my higher current earnings were somehow being "penalized" by not being indexed. Reading through everyone's experiences has been incredibly reassuring. I'm currently earning about $68,000 after years of much lower part-time work, and I was seriously considering retiring early because I thought the indexing cutoff at 60 meant my higher earnings now weren't "counting properly." What really helped me understand was the explanation that indexing is meant to make your OLD earnings competitive with your NEW earnings, not to make your new earnings less valuable. That completely flipped my perspective! I just created my ssa.gov account after seeing it recommended so many times here, and wow - seeing my actual 35-year calculation makes everything crystal clear. I have at least 10 years in my calculation under $25,000 (indexed), so my current $68,000 is definitely going to help my benefit significantly. Thank you to everyone who shared their real-world experiences. This community knowledge has probably saved me from making a very costly early retirement mistake!

As a newcomer to this community, I want to express how incredibly helpful this entire discussion has been! I'm 60 years old and literally just went through this exact worry last month when I got a significant raise at work. I was panicking that my higher earnings now wouldn't "count" because of the indexing cutoff, but everyone's explanations here have completely put my mind at ease. What really helped me understand was the analogy that indexing helps your OLD earnings compete with your NEW earnings, not the other way around. I had it completely backwards! I was thinking that stopping indexing at 60 was somehow a penalty, when in reality it just means my current higher salary gets to compete directly against my inflation-adjusted historical earnings. Like so many others here, I have a very uneven work history - I worked part-time for about 15 years while raising kids, then gradually increased my hours, and now at 60 I'm finally earning more than I ever have ($65,000 annually). Based on everyone's advice, I immediately set up my ssa.gov account and confirmed that my current earnings are definitely higher than many of my 35 calculation years, even after indexing. This community knowledge has been invaluable - I was actually considering scaling back my hours because I thought it wouldn't matter for Social Security purposes. Now I know that continuing to work at this higher salary will directly benefit my future monthly payments. Thank you to everyone who shared their real experiences!

As a newcomer to this community, I want to thank everyone for such an enlightening discussion! I'm 58 and approaching these same decisions, so seeing so many real-world examples of people benefiting from working past 60 with higher earnings is incredibly reassuring. What strikes me most is how the indexing system actually seems quite fair once you understand it properly. The way I now think about it is: indexing gives your earlier earnings a "fair fight" against today's wages by adjusting for decades of inflation, but if you're genuinely earning more now than you did back then (even after that adjustment), your current work still wins and boosts your benefit. I love how many people mentioned the ssa.gov account - I'm definitely setting that up this week to see my own 35-year calculation. It sounds like actually seeing your real numbers is so much more helpful than trying to guess or worry about hypothetical scenarios. This thread has completely changed my retirement planning perspective. I was starting to think I should coast toward 60, but now I realize that career growth and higher earnings in my late 50s and early 60s could actually be the most financially impactful years for my Social Security benefit. What a valuable lesson!

As a newcomer to this community, I want to add my voice to this incredibly helpful discussion! I'm 59 and just received a job offer that would significantly increase my salary starting next year when I turn 60. I was actually hesitant to accept it because of concerns about the indexing cutoff, but reading everyone's real experiences here has been so reassuring. The consistent theme I'm seeing is that higher post-60 earnings help rather than hurt your Social Security calculation when they replace lower years in your work history. This makes perfect sense once you understand that the 35-year calculation is looking for your HIGHEST years, regardless of whether they're indexed or not. What really convinced me was seeing how many people tracked their actual benefit estimates on ssa.gov and watched them increase month by month as they continued working past 60. That's concrete proof that the system works exactly as everyone has explained - higher current earnings can absolutely boost your benefit by replacing lower historical years. I'm definitely going to accept this job offer and set up my ssa.gov account to monitor how my estimated benefits change. Thank you to everyone who shared their experiences - this community knowledge has helped me make a much more informed career decision at a crucial time!

As a newcomer to this community, I want to thank everyone for this incredibly comprehensive and helpful discussion! I'm 61 and have been struggling with this exact same confusion about post-60 earnings and Social Security indexing for months now. What really stands out to me is how consistently everyone's real-world experience contradicts the common misconception that earnings after 60 somehow "don't count as much." The pattern is so clear - people with variable work histories who are earning more now than in their earlier years are seeing their Social Security benefits INCREASE by continuing to work past 60, not decrease. The explanation that indexing helps your OLD earnings compete with your NEW earnings (rather than penalizing your new earnings) was the key insight that made everything click for me. I had been thinking about it completely backwards, just like so many others here! I'm currently earning $58,000 after decades of lower part-time work, and I was seriously considering early retirement because I thought my higher current salary wasn't being "credited properly" due to the indexing cutoff. But after reading all these experiences and setting up my ssa.gov account (as recommended by practically everyone here), I can see that my current earnings will definitely replace several low years in my 35-year calculation. This community knowledge has been absolutely invaluable - thank you to everyone who took the time to share their real experiences and help newcomers like me understand how this system actually works!