Will Social Security recalculate my early retirement benefits if I keep working after claiming at 64?

yes they recalculate every year when ur employer sends in ur w2 info

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.

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

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!!!!

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.

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

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.

im still confused about this stuff lol... do your SS payments go up based on COLAs too or just the recalculation thing??

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.

Great discussion here! I just wanted to add one more consideration for your planning - if you do decide to claim at 64 and continue working, make sure to track your earnings carefully throughout the year. The earnings test limit can sneak up on you, especially if you get bonuses or overtime pay. I've seen people get surprised by overpayment notices because they didn't realize how close they were to the threshold. You might want to consider having SSA withhold taxes from your benefits too, since the combination of work income plus SS benefits could bump you into a higher tax bracket. The IRS has worksheets to help figure out if your SS benefits will be taxable. Just another piece of the puzzle to consider!

One thing I'd add is to check your Social Security Statement (available at ssa.gov/myaccount) to see what your current top 35 earning years look like. This can help you estimate how much impact your 2025 earnings might have on the recalculation. If your 2025 projected income would replace one of your lower earning years, you can get a rough idea of the potential benefit increase. The statement shows your earnings history year by year, so you can see if there are any particularly low years (maybe from early in your career or years with unemployment) that would be replaced. It's also worth noting that earnings are indexed for inflation in the benefit calculation, so a $30,000 year from 1995 might actually count as more than a $30,000 year from 2020 in the calculation. The online calculators on SSA's website can help you run different scenarios too.

This has been such an informative thread! As someone approaching a similar decision, I wanted to share a resource that might help with the planning process. The SSA has a "Retirement Estimator" tool on their website that lets you input different claiming ages and earnings scenarios to see how they affect your benefits. You can model claiming at 64 vs waiting until FRA, and even factor in continued earnings. It's been really helpful for me to visualize the trade-offs between getting benefits earlier (but reduced) versus waiting for the full amount. The tool also shows you the break-even point - basically how long you'd need to live to make waiting worthwhile financially. Of course, everyone's situation is different and there are factors beyond just the math (like needing the income now, health considerations, etc.), but it's nice to have the numbers to work with when making such an important decision.