Social Security earnings record update timing for 2024 income - affects my April 2025 benefits
I'm planning to retire next year and start collecting Social Security in April 2025 (at my FRA of 67). My question is about when SSA updates my earnings record to include my 2024 income. I've heard conflicting information - some people say they update records by March, others say it takes until September or later in 2025. I'm trying to calculate my exact benefit amount and this 2024 income would bump up my monthly payment because it's replacing a much lower earning year from the 1990s. Does anyone know the official timeline for when 2024 earnings get reflected in my benefit calculation if I start in April 2025? Would really appreciate insight from someone who's gone through this recently!
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Molly Hansen
Your 2024 earnings won't automatically be included in your initial benefit calculation if you start benefits in April 2025. Employers have until January 31, 2025, to send W-2s to employees, then until January 31, 2026, to report those earnings to SSA. Self-employment income is reported with your tax return. SSA typically processes most earnings records by September 2025, but they can do an earnings recalculation later when all 2024 earnings post. Your initial benefit will be calculated without 2024, then adjusted retroactively when those earnings are processed.
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Connor Rupert
•That's disappointing! So I'll start with a lower benefit amount and then they'll adjust it later with backpay? Do I need to contact them about this or will it happen automatically once my 2024 earnings are processed?
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Brady Clean
I just went thru this!!! started my benefits in Jan 2025 and my 2024 earnings weren't on my record yet. SSA rep told me they do an automatic recomputation every year around October to include any new earnings that might increase benefits. They call it the "AERO" process (Automatic Earnings Recomputation Operation) - I wrote it down because it sounded important! If the recomputation results in higher benefit they pay retroactive to January of that year.
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Connor Rupert
•Thank you! That's really helpful to know about this AERO process. Did they tell you approximately how much your benefits might increase after they include your 2024 earnings?
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Brady Clean
•They wouldn't give me an exact amount but said since my 2024 earnings were much higher than some of my earlier years it would probably bump up my payment by $80-120/month. And they'll pay the difference back to January when the adjustment happens! The rep said I didn't need to do anything - its totally automatic.
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Skylar Neal
My brother told me you have to request a recalculation or they won't do it automatically! He said call and make sure they know about your 2024 income or you might not get the increase.
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Vincent Bimbach
•This is incorrect. SSA performs the AERO recalculation automatically every year. You do NOT need to request it for regular W-2 employment or self-employment reported on your tax return. The only time you might need to contact SSA is if you have earnings that weren't properly reported to them, like cash wages or foreign earnings. Regular US employment is processed automatically through the AERO system.
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Kelsey Chin
I had a similar situation when I retired in 2023. They calculated my initial benefit without my final year of earnings, but then around November, I got a letter saying my benefit was being increased AND I got a nice retroactive payment for the difference going back to January. Hadn't even called them about it - totally automatic. Just be aware you'll start with slightly lower benefit initially.
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Connor Rupert
•Thanks for sharing your experience! That's exactly my situation. Did you find the initial benefit calculation was significantly lower without that last year of earnings? I'm just trying to budget for 2025.
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Kelsey Chin
•In my case, the adjustment added about $175/month. But I had a REALLY good final year compared to some early career years, so the difference was bigger than most people might see. The retroactive payment was nice though - around $1,750 for those 10 months! Like finding money I didn't know was coming.
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Norah Quay
For my husband it took FOREVER to get his benefits updated with his last year of work!!! We started calling in June and they kept saying "still processing" for months. Finally got updated in November with backpay. So frustrating!!! You should probably plan on the lower amount for at least 6-8 months just to be safe.
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Leo McDonald
•I had a similar experience trying to reach SSA about earnings updates. After weeks of calling and waiting on hold for hours, I discovered Claimyr (claimyr.com) and they got me connected to an SSA agent in under 10 minutes. Saved me so much frustration! They have a video showing how it works at https://youtu.be/Z-BRbJw3puU. The agent I spoke with confirmed my earnings update was in process and gave me an estimated completion timeframe, which was really helpful for planning.
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Vincent Bimbach
To clarify some of the information provided: The Social Security Administration uses your highest 35 years of earnings (indexed for inflation) to calculate your retirement benefit. If you file for benefits in April 2025, your initial calculation will NOT include 2024 earnings since they haven't been fully processed yet. Later in 2025 (typically September-October), SSA runs the AERO process which automatically recalculates benefits to include recently posted earnings. If your 2024 earnings replace a lower year in your top 35, your benefit will increase retroactively to January 2025, and you'll receive a lump sum payment for the difference. You don't need to request this recalculation - it happens automatically for all beneficiaries.
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Connor Rupert
•Thank you for this detailed explanation! Do you happen to know if the mySSA website will show me an estimate that includes or excludes the 2024 earnings? I'm trying to determine the difference between what I'll initially receive versus after the recalculation.
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Vincent Bimbach
•The mySSA benefit estimator typically shows projections based on your earnings record to date, plus assumptions about future earnings. For precision, I recommend looking at your earnings record on mySSA, then manually calculating two scenarios: one with your 35 highest years excluding 2024, and another including your projected 2024 earnings (replacing your lowest year). The difference between these calculations will approximate the increase you'll see after the AERO process runs.
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Kelsey Chin
By the way, make sure all your past earnings are correct on your SS statement! I found a year missing from 2008 that cost me $65/month until I got it fixed. They only go back 3 years for corrections without extra proof, so check carefully!!
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Connor Rupert
•That's a great reminder. I actually did find a discrepancy from 2019 that I need to follow up on. Do you know what documentation I need to provide to get that fixed?
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Kelsey Chin
•For my missing 2008 earnings I had to provide my W-2 from that year (thank goodness I kept it!) and fill out a form requesting a correction. If it's within the last 3 years it's easier to fix. For older years they're more strict about proof. You should check your earnings record every year - learned that lesson hard way!
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Ethan Scott
Just wanted to add another data point - I started my benefits in March 2024 and my 2023 earnings weren't included in the initial calculation. Got the automatic adjustment in October 2024 with a nice retroactive payment back to January. The whole process was seamless and I didn't have to do anything. One tip: when you apply for benefits, ask the SSA representative to give you a rough estimate of what your benefit might be after your 2024 earnings are included. They can usually give you a ballpark figure based on your projected income, which really helped me with budgeting that first year. Also, keep good records of your 2024 earnings just in case there are any discrepancies later!
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Mei Chen
I'm in a very similar situation - planning to start benefits in June 2025 at FRA and wondering about my 2024 earnings impact. This thread has been incredibly helpful! Based on what everyone's shared, it sounds like I should budget for the lower initial benefit amount and treat the eventual increase as a bonus. One question I haven't seen addressed: if you're doing some consulting work in early 2025 (before starting benefits), do those earnings get processed faster since they're more recent, or do they follow the same October AERO timeline? Also, has anyone noticed if the automatic recalculation letter from SSA clearly explains what changed and by how much? I like to keep detailed records for tax purposes.
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Niko Ramsey
•Great questions! From what I understand, any earnings in 2025 (including consulting work before you start benefits) would be processed even later than 2024 earnings since employers don't report them until early 2026. So your consulting income would likely be included in the October 2026 AERO run, not 2025. Regarding the recalculation letter - when my aunt got hers last year, it was pretty detailed. It showed her old benefit amount, new amount, the effective date of the increase, and the retroactive payment amount. It also included a brief explanation about which earnings years were used in the recalculation. The letter came about 2 weeks before the retroactive payment hit her account. Definitely keep copies for your records!
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Dana Doyle
This is such valuable information for anyone planning retirement timing! I'm actually in a similar boat - turning 67 in August 2025 and debating whether to start benefits immediately or wait a few months. From what I'm reading here, it sounds like there's really no advantage to waiting since the 2024 earnings won't be processed until the October AERO run regardless of when you start. One thing I'm curious about - has anyone here dealt with state pension systems that might interact with Social Security timing? I have a small state teacher's pension that I'm also trying to coordinate, and I'm wondering if there are any timing considerations there that might affect the optimal strategy for when to file for Social Security. The automatic recalculation process sounds reassuring though - it's nice to know SSA handles this behind the scenes rather than requiring us to track it manually!
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Yuki Tanaka
•You're absolutely right about there being no timing advantage to waiting - the AERO process runs on SSA's schedule regardless of when you start benefits. Regarding state pensions, you'll want to check if your teacher's pension is subject to the Windfall Elimination Provision (WEP) or Government Pension Offset (GPO). These can reduce Social Security benefits if you receive a pension from work where you didn't pay Social Security taxes. The timing of when you start each benefit can matter for tax planning purposes, but it won't affect the WEP/GPO calculations. I'd recommend running the numbers both ways - starting SS at FRA in August vs waiting until your teacher's pension kicks in - to see which gives you better cash flow and tax efficiency for your specific situation.
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Aisha Hussain
As someone who just started receiving benefits in February 2025, I can confirm what others have shared about the timing. My 2024 earnings definitely weren't included in my initial benefit calculation, and my SSA representative explained that I should expect an automatic adjustment around October 2025 through the AERO process. What's been helpful for me is setting up a separate savings account where I'm putting aside the estimated difference between my current benefit and what I expect after the recalculation. That way, when the retroactive payment comes, I can treat it as a true bonus rather than counting on it for monthly expenses. Also, I'd recommend creating a my.ssa.gov account if you haven't already - being able to see your earnings record online makes it much easier to estimate the potential impact of your 2024 earnings on your benefit calculation. The peace of mind of knowing exactly what's in your record is worth the few minutes it takes to set up the account!
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Samantha Howard
•That's such a smart approach with the separate savings account! I hadn't thought about setting aside the estimated difference rather than just hoping for the best. As someone new to navigating Social Security, I'm wondering - when you set up your my.ssa.gov account, were you able to easily calculate which of your lower earning years from the past would likely be replaced by your 2024 income? I'm trying to figure out if there's a simple way to estimate the monthly benefit increase or if I need to do more complex calculations with the bend points and indexing factors. Also, did your SSA representative give you any sense of timing for when in October the AERO adjustments typically get processed? I'm curious if it's early October or more toward the end of the month, just for planning purposes!
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