Social Security earnings update timing - delaying retirement past 65 to increase benefit amount

SSA automatically updates your earnings record when your employer reports your wages (typically quarterly) and when you file taxes. However, there's often a lag between when you earn income and when it shows up in SSA's systems. Your 2025 earnings typically won't be fully processed until mid-to-late 2026 after tax filing. That said, if you're past your FRA, you can apply for benefits and still have later earnings potentially increase your benefit through something called an Automatic Earnings Recomputation (ARF). SSA will automatically recalculate and adjust your benefit if new earnings are high enough to increase your benefit amount. If you're only working through April before retiring, weigh whether those few months of additional income will meaningfully impact your 35-year earnings history that SSA uses for benefit calculations.

I did this last year!! worked 3 months into the year then quit and filed. they didnt count my last months right away but i got a letter about 8 months later saying my benefit went up $28/month because of those extra earnings. not a huge amount but hey its something

Don't overthink this! I stressed about the EXACT same timing issue. Worked until July thinking my benefit would go up substantially. After ALL that extra work (and waiting) my benefit only increased by $13/month. If you're making really good money it might be worth it but for most people the increase is pretty small, especially if you're just talking about a few more months of work. Remember your benefit is based on your 35 highest earning years (adjusted for inflation). A few more months rarely makes a big difference unless you're replacing years of $0 or very low earnings in your history. My advice: if you're ready to retire, just DO IT. File for benefits and enjoy life!

The Social Security Admin is TERRIBLE about updating your earnings quickly!!! I retired in 2024 and my last year of earnings STILL haven't been properly counted toward my benefits calculation. I've called them multiple times and keep getting different answers about when it will be fixed. Sometimes they say automatic, sometimes they say I need to request a recalculation. SO FRUSTRATING!

Check your Social Security Statement online (my Social Security account). It shows your earnings history year by year. See if all your past years look correct first. For timing: SSA gets W-2 info from IRS, usually processes by September-October the following year. But they do ARF (Automatic Recomputation of Benefits) annually, so if 2025 earnings increase your benefit, they'll adjust automatically. You'll get retroactive adjustments too. One important thing: if you're past FRA, you can file for benefits AND keep working with no earnings limit. So you could potentially start benefits in February and still have your 2025 earnings count toward potential benefit increases later.

my brother waited till 70 to maximize his ss and then died 8 months later. dont wait too long!!!!!

Just to clarify some points from the discussion: 1. Yes, you can file for retirement benefits AND continue working once you reach FRA (which you're very close to). There's no earnings limit penalty at that point. 2. The annual recomputation (ARF) happens automatically, usually in October of the following year, so 2025 earnings would likely be reflected around October 2026. 3. For most people with steady work histories, a few additional months of work has minimal impact on benefits because it's based on 35 years of indexed earnings. 4. If you do get an increase from your 2025 work, SSA will pay retroactively to when you first began receiving benefits. Given how close you are to FRA, I'd suggest filing for benefits soon and continuing to work as long as you want/need to. You'll get the best of both worlds.