Will Social Security automatically recalculate my benefits after working during retirement in 2023?

You're right that SSA should automatically recalculate your benefit to include your 2023 earnings, but there's a timeline to it. Typically, this recalculation (called an Automatic Earnings Recomputation or AERO) happens in the fall of the year AFTER you worked. So your 2023 earnings would normally be processed in late 2024, with any increase being paid starting in January 2025. The fact that you haven't seen an increase by mid-2025 is concerning. I'd definitely recommend contacting SSA at this point to inquire about your AERO calculation. They should be able to tell you if it's in process or if there was an issue.

Same thing happened with my husband!!! His increase never came through until he called them. Some glitch in there system probably. They mess up EVERYTHING!!

I'd definitely call SSA about this. The AERO process (Automatic Earnings Recomputation) should have happened by now. When it's processed, you should get retroactive payments back to January of the year after the earnings posted (so January 2024 in your case). Make sure you have your 2023 W-2 or self-employment tax forms handy when you call. They might ask you to verify that your earnings were properly posted to your record. One thing to consider - if 2023 wasn't one of your highest 35 years of earnings (adjusted for inflation), it wouldn't increase your benefit. But SSA should still have processed the recalculation and determined this.

Not to hijack but sorta similar question - if I work after full retirement age do they still do this recalculation thing? I thought once you hit FRA there's no earnings limit anyway?

I went through this exact situation last year. Called and called SSA but could never get through - constant busy signals and disconnects. Finally found this service called Claimyr (claimyr.com) that got me connected to an agent in under 20 minutes. The agent confirmed my recalculation was stuck in processing and fixed it on the spot. Worth checking out their video demo at https://youtu.be/Z-BRbJw3puU if you're tired of trying to get through to SSA. Saved me weeks of frustration.

It's entirely possible your 2023 earnings simply didn't increase your Primary Insurance Amount (PIA). The calculation is quite complex, but essentially: 1. SSA takes your 35 highest earning years (adjusted for inflation) 2. Averages those earnings to get your AIME (Average Indexed Monthly Earnings) 3. Applies a formula to your AIME to determine your PIA If your 2023 earnings didn't replace one of your 35 highest years, there would be no change to your benefit amount. However, SSA should still have performed the calculation. Another possibility is that your earnings weren't properly reported. I'd recommend checking your earnings record on my.ssa.gov to verify your 2023 income appears correctly. If there's a discrepancy, you'll need to provide proof of income to SSA.

My sister had 2 wait almost 2 YEARS for her recalculation!!!!! The SSA is so behind on everything. good luck getting anyone on the phone also lol

did you work alot in 2023? cause if you made more than the limit they might of took some of your ss away so maybe there's no increase coming

Just to follow up on your question about retroactive payments - yes, if your benefit increases due to the AERO recalculation, you should receive retroactive payments back to January 2024. This is different from the retroactive benefits some people get when they first file. For AERO recalculations, the increase is effective January of the year following the year you worked (so January 2024 for your 2023 work), and paid once the recalculation is complete. Definitely call them to check on this. They're required to perform this calculation, but sometimes things fall through the cracks.

UPDATE: I called SSA this morning and after an hour on hold (!!) finally spoke with someone. Turns out my recalculation WAS done in late 2024 but they found my 2023 earnings didn't increase my benefit enough to make a difference. The agent said it was literally a few cents below the threshold where they would apply an increase. So frustrating that they didn't bother to send any notification! But at least I know now. Thanks everyone for your help!

Thanks for sharing that update! It's really frustrating that SSA doesn't send any notification when they complete the recalculation but determine there's no increase. They should at least send a letter explaining that the calculation was done and why there was no change - would save people a lot of worry and wasted phone calls. Good on you for persisting and getting the answer though!

This is exactly why I always tell people to follow up on their AERO calculations! The system is supposed to be automatic but clearly has gaps. It's ridiculous that they don't send any notification when they complete the recalculation - whether there's an increase or not. At minimum, they should send a letter saying "We reviewed your 2023 earnings and determined it would not increase your benefit amount." Would save everyone so much confusion and stress. Glad you finally got answers though, Max!

This is such a helpful thread! As someone who's approaching retirement and planning to possibly work part-time after claiming benefits, I had no idea about the AERO process or that there's a $1 minimum threshold for benefit increases. It's really concerning that SSA doesn't send any notification when they complete these recalculations - that seems like such a basic communication failure. Max, I'm glad you persevered and got your answer, even if it wasn't the outcome you hoped for. This whole discussion has given me a much better understanding of what to expect and the importance of following up proactively. Thanks to everyone who shared their experiences and knowledge!

As someone who just went through a similar situation, I can't emphasize enough how important it is to stay on top of these AERO calculations! I had to call SSA three times over six months before getting a clear answer about my recalculation status. The lack of automatic notifications is really problematic - they should send a letter whether there's an increase or not. For anyone else in this situation, don't assume no news is good news. Check your my.ssa.gov account to verify your earnings are posted correctly, and if it's been more than 18 months since you worked, definitely call to ask about your AERO status. The representatives can pull up your calculation history and tell you exactly what happened. It's frustrating that we have to be our own advocates, but that's unfortunately the reality with SSA's current communication system.

Wow, this entire thread has been incredibly educational! As someone who's completely new to Social Security and retirement planning, I had absolutely no idea about the AERO process or any of these recalculation procedures. Max, thank you so much for sharing your experience and following up with the resolution - even though it wasn't the outcome you hoped for, it's really helpful to see the full story play out. What strikes me most is how much detective work beneficiaries have to do themselves. The fact that SSA doesn't send any notification when they complete these recalculations - whether there's an increase or not - seems like such a basic communication failure. A simple letter saying "We reviewed your 2023 earnings and determined it would/wouldn't change your benefit" would save so much stress and confusion. I'm taking notes on all the practical advice shared here - checking my.ssa.gov regularly, the 18-month follow-up timeline, having W-2s ready when calling, and understanding that $1 minimum threshold. This community is such a valuable resource for navigating these complex systems!

This has been such an enlightening discussion! As someone who's just starting to navigate the Social Security system, I had no idea about the AERO process or how complex these benefit recalculations can be. Max, I really appreciate you sharing both your initial concern and the final resolution - it's so helpful to see the complete picture, even though the outcome wasn't what you hoped for. What really stands out to me is how much the system relies on beneficiaries being proactive and persistent. The fact that SSA completed your recalculation but didn't send any notification - not even a simple "we reviewed your earnings and here's what we found" letter - seems like a major communication gap that could easily be fixed. I'm definitely taking notes on all the practical advice shared here: the typical AERO timeline, the $1 minimum threshold for increases, checking my.ssa.gov to verify earnings are posted correctly, and the importance of following up if it's been more than 18 months. This community has been incredibly valuable in explaining how things actually work in practice versus what the official guidance suggests. Thanks to everyone who shared their experiences and expertise!

This entire discussion has been absolutely invaluable for someone like me who's completely new to Social Security! Max, thank you so much for sharing your journey and sticking with it until you got answers - even though the outcome wasn't what you hoped for, your persistence really helped illuminate how this process actually works. What's most striking to me is the disconnect between what should happen automatically and what actually requires beneficiary advocacy. The fact that SSA completed your AERO calculation but provided zero communication about it seems like such a fundamental service failure. A simple form letter saying "We reviewed your 2023 earnings and determined the potential increase was below our $1 threshold" would have saved you months of worry and that frustrating hour-long phone call. I'm taking detailed notes on all the practical wisdom shared here - the typical timeline for AERO processing, the importance of checking my.ssa.gov to verify earnings are posted correctly, the $1 minimum threshold that I never would have known about otherwise, and that crucial 18-month follow-up benchmark. This community has provided more actionable guidance than any official SSA resource I've seen. It's both encouraging and concerning to see how much this community has to fill in the gaps left by inadequate official communication. Thanks to everyone who shared their experiences and expertise!