Will Social Security recalculate my benefits after FRA if I keep working and earning more?
I'm planning to retire and claim Social Security at my full retirement age (67) next year, but I might continue working part-time as a consultant. My potential consulting income would actually be higher than what I earned in some of my 35 highest earning years that SS is using for my benefit calculation. I'm confused about whether this would increase my monthly benefit amount. Does Social Security automatically recalculate my benefits each year if I earn more after starting to collect? Or do I need to contact them and request a recalculation? And is there some age cutoff where they stop considering new earnings for benefit increases? I've heard conflicting things from friends - one said they stop recalculating after 70, another said they use all earnings no matter your age. Anyone know for sure?
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Oliver Alexander
Yes, SSA automatically recalculates your benefit amount every year if you continue working after claiming benefits. They look at your new earnings and if they're higher than any of your previous 35 highest earning years, they'll replace one of those lower years with your new higher earnings year. This happens automatically - you don't need to contact them or request it. And there is NO age cutoff for this recalculation. As long as you're working and paying Social Security taxes, those earnings can potentially increase your benefit amount if they're high enough to replace one of your previous 35 years. The automatic recalculation happens each year after your earnings are reported to the IRS.
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Kaylee Cook
•That's a relief! Thank you for the clear explanation. Do you know roughly when during the year they do these recalculations? Is it after tax filing deadline?
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Lara Woods
they do it but the increases are usually tiny, like $5-10 a month, not worth working for IMO
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Adrian Hughes
•This isn't necessarily true. The increase depends entirely on how much more you're earning compared to your previous earnings. For someone replacing a very low earning year (or even a zero) with substantial earnings, the increase could be significant. To the original poster: The recalculation typically happens in October of the year following your work year, after all wages have been reported and processed.
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Molly Chambers
Wait I'm confused. I thought once you file for Social Security, your benefit amount is locked in forever? That's what the guy at my local office told me when I filed last year. Are you saying I could have been getting more money this whole time???
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Oliver Alexander
•The person at your local office gave you incorrect information. Your benefit amount is NOT locked in permanently when you file. If you continue working and paying Social Security taxes, the SSA reviews your record each year to see if your new earnings increase your benefit amount. You should call SSA to verify whether you might be due an increase based on your recent work activity.
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Ian Armstrong
I went through this exact situation! Started benefits at 66 (my FRA) but kept working part-time making pretty good money. My January payment this year went up by $86/month because of my last two years of earnings replacing some lower years from the 1990s. Nice surprise when I got the notice in the mail!
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Kaylee Cook
•Wow, $86 is substantial! That's encouraging to hear. Did you have to do anything to make this happen or did they just notify you of the increase?
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Eli Butler
Trying to reach SSA to ask about benefit recalculations is nearly impossible these days. I spent WEEKS trying to get through on their 800 number about a similar question and kept getting disconnected. Finally tried a service called Claimyr (claimyr.com) that got me through to a rep in under 10 minutes. They have a video showing how it works: https://youtu.be/Z-BRbJw3puU The agent confirmed they automatically recalculate benefits every year based on new earnings. The recalculation happens in October or November for the previous year's earnings, and any increase takes effect in January.
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Lara Woods
•is that service legit? seems sketchy that you have to pay to talk to a government agency
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Marcus Patterson
THE WHOLE SYSTEM IS RIGGED!!! They SAY they recalculate but I worked for THREE YEARS after starting my benefits and my payment only went up by $12 total. That's NOTHING compared to what I paid in taxes!!! They're STEALING from us!!!
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Adrian Hughes
•The increase is directly tied to how your recent earnings compare to your previous 35 highest years. If you already had 35 years of relatively good earnings, then additional work might only replace years that weren't much lower, resulting in smaller increases. It's simple math, not a conspiracy.
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Lara Woods
my dad got an increase last year from his work but it was only like $23 more a month. better than nothing i guess
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Molly Chambers
I have a similar question... I'm turning 62 next month but planning to wait until 67 to file. If I stop working at 64, will the years between 64-67 count as zeros in my calculation? Or do they only count the years up until I stop working?
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Oliver Alexander
•SSA always uses your 35 highest-earning years regardless of when they occurred. If you stop working at 64, they'll just use your 35 highest years up to that point. Any years with zero earnings will only be included in your calculation if you don't have 35 years of work history. If you already have 35+ years of earnings, then stopping work at 64 won't add zeros to your calculation.
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Kaylee Cook
Thank you all for the helpful information! It's great to know this happens automatically. It sounds like the timing of the recalculation is around October/November for the previous year's earnings, with payment increases taking effect in January. And I'm relieved there's no age cutoff! I think in my case the increases might be meaningful since I'll be replacing some very low earning years from when I first started working. I'll make sure to keep track of my benefit amounts each January to see if they increase.
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