Will Social Security recalculate my early retirement benefits if I keep working after claiming at 64?
I've been planning my retirement and think I'll start taking SS benefits at 64 (about 2 years from now), even though that's before my full retirement age. The thing is, I'm not planning to fully retire then - I'll keep working at my current job for at least another year or two. My question is about how this affects my benefit amount. I know Social Security calculates benefits using my highest 35 years of earnings, but I'm not sure if they'll update my benefit amount automatically if I earn more AFTER I start collecting. My 2025 income will likely be higher than some of my earlier years that are currently in my top 35. Will the SSA automatically recalculate my benefit amount to include this newer, higher income year? Or are benefit amounts permanently fixed once I start collecting? I don't want to leave money on the table if I can get a higher monthly payment!
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Joy Olmedo
yes they recalculate every year when ur employer sends in ur w2 info
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Kingston Bellamy
•That's great to hear! Do you know approximately when they do the recalculation? Is it right after tax season or on some other schedule?
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Isaiah Cross
SSA automatically recalculates your benefit amount annually. If your earnings in 2025 replace a lower-earning year in your highest 35, your benefit will increase accordingly. However, there are two important things to keep in mind: 1. The recalculation typically happens the following year (so 2025 earnings would affect your benefit in 2026) 2. Since you're claiming before Full Retirement Age, remember you'll be subject to the earnings test. For 2025, if you earn over $22,750 (estimated), SSA will withhold $1 in benefits for every $2 you earn above this limit. This isn't a permanent reduction though - once you reach FRA, your benefit will be adjusted upward to account for any months benefits were withheld. The good news is these recalculations happen automatically, you don't need to contact SSA to trigger them.
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Kiara Greene
•This earnings test is RIDICULOUS! They essentially PUNISH you for working while taking benefits early! What's the point of even claiming early if they're just going to take it away? The whole system is designed to confuse people and withhold benefits we've EARNED over decades of working!!!
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Kingston Bellamy
•Thank you! This is exactly what I needed to know. I hadn't even considered the earnings test. Do you know if there's any way to estimate how much my benefit might increase with the new earnings year? Is it usually a significant amount or just a few dollars?
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Evelyn Kelly
When I claimed at 62 last year I was in the same boat. The SSA does recalculate every year but dont expect a huge increase. Mine only went up $26/month after replacing a lower year with my 2024 earnings. Might be different for you tho depends on your earning history
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Kingston Bellamy
•Thanks for sharing your experience! A $26 increase isn't huge, but it's something. I guess it really depends on how much higher my 2025 earnings will be compared to my lowest year in the current calculation.
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Paloma Clark
My sister retired last yr and had this EXACT same question!!!! She called SS and waited on hold for TWO HOURS only to get disconnected. Then tried again next day and same thing happened!!! So frustrating!!!!
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Heather Tyson
•I was in a similar situation trying to get answers about recalculations. After getting disconnected multiple times, I found this service called Claimyr that got me through to an actual SSA agent in less than 10 minutes. They basically call and wait on hold for you, then connect you when an agent picks up. Saved me so much frustration. They have a video showing how it works at https://youtu.be/Z-BRbJw3puU and their website is claimyr.com. Worth checking out if you or your sister need to speak with SSA again.
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Raul Neal
Just to add to the excellent information already provided - there are actually three separate processes happening that could affect your benefits when working after claiming: 1. Annual Recalculation: SSA reviews your earnings record each year and will automatically increase your benefit if newer earnings replace lower ones in your top 35 years. 2. Earnings Test Withholding: Since you're claiming before FRA, benefits may be temporarily reduced if you earn above the threshold ($22,750 estimated for 2025). 3. Earnings Test Adjustment at FRA: When you reach full retirement age, SSA will recalculate your benefit to give you credit for months when benefits were reduced or withheld due to the earnings test. One thing to remember is that your benefit amount was already permanently reduced by claiming at 64 instead of your FRA (probably around 13.3% reduction if your FRA is 67). The recalculations for higher earnings won't change that reduction factor - they'll just be applied to your already-reduced benefit amount.
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Kingston Bellamy
•Thank you for explaining all this so clearly! I'm starting to think I might be better off waiting until my full retirement age to claim, especially since I plan to continue working. I'd avoid the earnings test completely and get my full benefit amount. Lots to consider here.
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Joy Olmedo
my friend tried to get ssa to recalculate and they messed up his whole account ended up getting no payment for 3 months while they sorted it out. just let them do it automatically dont call them about it
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Kingston Bellamy
•Yikes! That sounds like a nightmare. I'll definitely let the system handle it automatically rather than trying to initiate anything. Thanks for the warning!
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Evelyn Kelly
I wished someone would have told me about the earnings limit before I took SS at 63!!! I had to pay back $4,800 because I made too much last year. Now I understand its not really lost forever but I wasn't planning on having to pay all that back! Budget got real tight.
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Kiara Greene
•EXACTLY! They don't make this clear AT ALL when you apply! It's practically a trap designed to catch unsuspecting retirees. Then they send those scary overpayment letters demanding money back immediately. The whole system needs to be more transparent!!!
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Paloma Clark
im still confused about this stuff lol... do your SS payments go up based on COLAs too or just the recalculation thing??
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Isaiah Cross
•Yes, you'll receive Cost-of-Living Adjustments (COLAs) as well! These are completely separate from the recalculations we're discussing here. Everyone on Social Security gets the same COLA percentage increase each year (when there is one) to help benefits keep pace with inflation. For 2024, the COLA was 3.2%. So you get both types of increases: COLA adjustments AND potential increases from new higher-earning years replacing lower ones in your calculation.
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Kingston Bellamy
Thanks everyone for all the helpful information! I think I have a much better understanding now. To summarize what I've learned: 1. SSA will automatically recalculate my benefit each year if my new earnings replace a lower year 2. These increases might be modest but they do happen automatically 3. I need to be aware of the earnings test if I claim before my FRA - this could significantly reduce my benefits temporarily 4. Once I reach FRA, I'll get credit back for any benefits withheld due to the earnings test I'm going to reconsider my strategy and might wait until my Full Retirement Age after all, since I plan to continue working. That would avoid the complications with the earnings test entirely.
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Raul Neal
•That's an excellent summary! Given your situation of continuing to work, waiting until your FRA could indeed be advantageous. It would eliminate the earnings test concerns entirely while still allowing your benefit to increase through the annual recalculations when higher-earning years replace lower ones in your calculation. Best of luck with your decision!
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