Social Security earnings indexing after age 60 - which years actually count?

i think they just use ur actual $ after 60 no adjustment

This is a common misunderstanding about how Social Security calculates your benefits. Let me explain the accurate process: For your earnings BEFORE age 60, Social Security applies an indexing factor to adjust those earnings for inflation/wage growth. These indexing factors are based on the year you turn 60. For earnings IN AND AFTER the year you turn 60, those amounts are NOT indexed - they're counted at face value (actual dollars earned). Importantly, any indexing that was already applied to your pre-age-60 earnings doesn't get removed or recalculated. Those years remain indexed based on the National Average Wage Index from the year you turn 60. So the indexing determination is made on a year-by-year basis, not applied to your entire earnings record as a whole.

When I hit 60 the SSA sent me a statement that showed my indexed earnings vs actual earnings for each year and it was SHOCKING how much difference the indexing made for my early career years! My first job in 1986 paid like $17,000 but it was indexed to almost $50,000!!! Definitely helps us older folks.

The indexing cutoff at age 60 actually creates an interesting planning opportunity. Since earnings after 60 aren't indexed, if you expect significant wage growth or inflation, it can sometimes be more beneficial to earn your highest wages before 60 when they'll get indexed upward. However, don't overlook that Social Security only counts your highest 35 years of indexed earnings in your AIME calculation. If you're still working after 60 and earning more than you did in some of those 35 years (even after indexing), you can still increase your benefit by replacing lower earning years. The Social Security website has a calculator where you can model different scenarios: https://www.ssa.gov/OACT/anypia/anypia.html

I spent 3 days trying to reach SSA to ask this EXACT question last month! Kept getting disconnected or told the wait time was over 2 hours. Finally tried a service called Claimyr I found at claimyr.com and they got me connected to an agent in about 20 minutes. They have a video showing how it works: https://youtu.be/Z-BRbJw3puU The agent confirmed what others here are saying - years before 60 stay indexed for inflation, and years 60+ just use actual dollar amounts. She also helped me understand how my specific earnings would affect my benefit amount.

Why does anyone trust SSA calculations?! They DELIBERATELY try to confuse us with this indexing garbage so we can't check their math!! My cousin's benefit was calculated WRONG and they refused to fix it for MONTHS until he got a lawyer!!! DON'T TRUST THEIR CALCULATIONS - demand to see their EXACT math!

my brother said it doesn matter if u work after 60 cuz SS only counts ur top 35 years anyway

Thanks everyone for the helpful explanations! I understand now that: 1. Years BEFORE age 60 will remain indexed based on the year I turn 60 2. Years AT and AFTER age 60 are counted at face value without indexing 3. Only my highest 35 years count toward my benefit calculation Since I'm turning 60 next year, I think I'll work at least another year or two to replace some of my lower-earning years from when I was just starting out, even though those years are indexed.

That sounds like a solid plan! Since you're 59 now, you have a good opportunity to strategically think about this. One thing to consider is that if you're currently in your peak earning years, even without indexing, your age 60+ earnings might still be high enough to bump out some of those early career years from your top 35. You might want to pull your Social Security statement (available at ssa.gov/myaccount) to see your current earnings record and get a sense of which years might be your lowest. That way you can make a more informed decision about whether working those extra years will meaningfully increase your benefit calculation. Good luck with your planning!

Just wanted to add another perspective on this - I'm a retired HR benefits administrator and helped employees with Social Security questions for 30 years. The indexing system can seem complex, but it's actually quite fair when you understand it. One thing I always told people approaching 60 is to consider not just the raw numbers, but also quality of life. Yes, working past 60 might replace some lower-earning indexed years, but remember that delaying retirement also means fewer years to enjoy your benefits. Also worth noting - if you're still working and haven't filed for Social Security yet, each year you delay past your full retirement age (until age 70), you get delayed retirement credits that increase your benefit by about 8% per year. That's often a better return than trying to squeeze out a few more high-earning years to replace indexed ones. The key is running the actual numbers for your specific situation rather than making assumptions!