Will Social Security recalculate my retirement benefits after working past FRA with higher earnings?

Yes, SSA automatically recalculates your benefit amount every year. I went through this exact situation. The recalculation happens automatically and if your recent earnings are higher and replace a lower earning year in your top 35, your benefit will increase. The adjustment usually happens around October of the following year after they process your tax returns. You'll get a letter in the mail telling you about any increase. The best part is that there's no reduction for working after FRA - you get to keep all your earnings AND potentially increase your benefit amount! In my case, I saw about a $75 monthly increase after working one year past my FRA with higher earnings.

my friend said they DONT do it automatic, you have to call them and ASK for the recalculation!!! dont listen to the other person, SSA never does anything automatic right lol

i retired at FRA in 2023 but keep working part time. After reading ur post im worried now cause i didnt know they would redo the calculations?? does this mean my benefits could go DOWN if im not making as much now?? i only work about 20 hrs a week now making like $30k which is way less than before i retired when i was making $75k. will they LOWER my ss payment???

The process you're referring to is called the Automatic Earnings Reappraisal Operation (AERO). Here's how it works: 1. SSA automatically reviews your record each year when new earnings are posted 2. If your new earnings are higher than any of the 35 years used to calculate your original benefit, they'll replace a lower year 3. Your Primary Insurance Amount (PIA) will be recalculated 4. Any increase will be retroactive to January of the year following the year with higher earnings 5. You'll typically see the adjustment in October's payment, with back payments included Keep in mind that at higher earnings levels, each additional dollar has less impact on your benefit amount due to the progressive nature of the benefit formula. Still, it's certainly worth having those higher earnings counted. One important note: make sure all your earnings are properly reported on your tax returns so they'll be correctly reflected in your Social Security record.

I had a neighbor who tried to get his benefit recalculated after working 2 years past his retirement and he said it was a NIGHTMARE dealing with Social Security!!! He kept calling and calling and getting disconnected. Said he finally had to go to the office in person multiple times. This was like 5 years ago though so maybe they fixed their systems by now???

How many years do you have to work to get to the 35 years anyways? I only worked for 31 years total. Does that mean they put in 4 years of ZEROS for me? That seems unfair!!!!

Thank you all for the great information! I'm relieved to hear the recalculation happens automatically. After reading your responses, I checked my Social Security statement online and noticed I had a couple of years early in my career with very low earnings, so these new higher-earning years should definitely help boost my benefit. I've marked my calendar for October 2026 (after I plan to fully retire) to make sure I see the final adjustment. Such a relief not having to navigate the SSA phone system to request this! For those suggesting I monitor my earnings record - definitely good advice. I'll make a habit of checking my mySocialSecurity account annually to verify everything's recorded correctly.

This is such valuable information! I'm in a similar situation - just turned 67 and still working, but I wasn't sure how the recalculation process worked. Reading through everyone's responses, it's clear that the AERO process is automatic, which is a huge relief. One thing I'd add for anyone else in this situation: if you're planning to work several more years past FRA like the original poster, it might be worth running some projections to see the potential impact. The SSA website has benefit calculators that can help estimate how additional high-earning years might affect your monthly payment. Also, don't forget about the delayed retirement credits if you haven't started collecting yet - those stop at age 70, but the earnings recalculations through AERO continue for as long as you keep working and earning. It's nice to know there are multiple ways your benefits can potentially increase even after reaching FRA!

This is exactly the kind of post that would have saved me hours of research! I'm 68 and have been working part-time since I started collecting at 67. What I found helpful was creating a simple spreadsheet to track my pre-retirement earnings by year (you can get this from your Social Security statement) and then estimate which years my current earnings might replace. One thing to keep in mind - the AERO process uses your indexed earnings, not just the raw dollar amounts. So a $30,000 year from 1985 might actually be worth more in the calculation than $30,000 today due to wage indexing. This is why sometimes the benefit increases aren't as large as you might expect, especially if you're replacing years from the 1980s or 1990s. I've been through two AERO recalculations now, and both times I got the letter in October just like others mentioned. The first year gave me about a $45 increase, the second year was only $12 because it replaced a higher-indexed year. Still, every bit helps and it's great knowing it happens automatically!

This thread has been incredibly informative! I'm 66 and was debating whether to start collecting Social Security now or wait until 67 (my FRA). I'm currently earning about $78,000 annually, which is higher than most of my career earnings. Reading about the AERO process makes me think it might actually be beneficial to start collecting at FRA and keep working for a few more years to take advantage of both the automatic recalculations AND avoid any earnings test penalties. One question for those who have been through this - do you know if there's a minimum threshold for how much higher your current earnings need to be to actually trigger a benefit increase? Or does any amount that's higher than your lowest earning year (or zero years) result in at least some increase, even if it's small? Also, Carlos's point about wage indexing is fascinating - I had no idea that was part of the calculation. It sounds like I should definitely pull my earnings history and try to figure out which years might realistically be replaced before making my final decision on when to start collecting.

I'm approaching my FRA next year and this discussion has been incredibly enlightening! I had no idea about the AERO process - I thought once you started collecting, that was it. The fact that SSA automatically reviews and potentially increases benefits based on continued earnings is fantastic news. One practical question for those who've experienced this: when you received your October letter notifying you of the benefit increase, did it clearly explain which earning years were replaced and how the new calculation was done? I'm the type of person who likes to understand exactly how these numbers work, and I'm hoping the documentation they provide is detailed enough to verify the math. Also, for anyone still working past FRA - have you noticed any impact on your Medicare premiums due to the higher current earnings? I know IRMAA adjustments are based on tax returns from two years prior, so I'm wondering if there might be a delayed effect on Medicare costs as well as the positive effect on Social Security benefits. Thanks to everyone for sharing their experiences - this kind of real-world information is invaluable when planning retirement strategies!

What a fantastic thread! As someone who just started collecting at my FRA (67) three months ago while continuing to work full-time, I've been wondering about exactly this situation. My current salary is about $92,000, which is definitely higher than several years in my work history, especially some lean years in the early 2000s. Reading about the AERO process being automatic is such a relief - I was dreading having to navigate the SSA phone system to request recalculations! The October timing mentioned by several people here gives me a clear expectation of when to look for any adjustments. One thing I'm curious about: for those who have been through this process, do you remember approximately how long it took from when you filed your tax return to when you saw the benefit adjustment? I'm wondering if there's any correlation between when you file (early vs. late in tax season) and when the AERO process gets completed. Also, the point about wage indexing that Carlos raised is fascinating - I never realized that older earnings get adjusted upward in the calculation. That definitely explains why some benefit increases might be smaller than expected. I'm planning to dig into my earnings history to better understand which years might realistically be replaced. Thanks everyone for sharing such detailed, real-world experiences. This is exactly the kind of information that's hard to find elsewhere!

This has been such an educational thread! I'm 65 and planning to start collecting at my FRA next year while continuing to work part-time. Reading through all these responses has answered so many questions I didn't even know I had about the AERO process. What really stands out to me is how the automatic nature of this system takes away so much stress. I was honestly worried I'd have to become an expert on Social Security rules and make regular calls to ensure I got proper credit for continued earnings. Knowing that SSA handles this automatically through AERO, and that benefits can only increase (never decrease) from additional work, makes the decision to keep working much easier. The wage indexing explanation from Carlos was particularly eye-opening. I had assumed it was just a straight dollar-for-dollar comparison, but understanding that older earnings are adjusted upward helps explain why the increases might be more modest than expected in some cases. For anyone else in a similar situation, I'm definitely going to follow the advice here about checking my earnings history online and creating a simple spreadsheet to track which years might be replaced. Having realistic expectations about potential benefit increases seems like a smart approach. Thanks to everyone who shared their real experiences - this kind of practical information from people who have actually been through the process is invaluable!

As someone who just went through their first AERO recalculation, I can confirm everything mentioned here is accurate! I started collecting at my FRA (66 and 8 months) in early 2023 while continuing to work, earning about $75,000 annually - much higher than my average career earnings of around $45,000. Just this past October, I received the letter everyone mentioned, and my monthly benefit increased by $58! What surprised me most was how seamless the process was. No phone calls, no paperwork, no hassle - just a nice letter explaining the increase was due to my 2023 earnings. One tip I'd add: I kept a copy of my Social Security statement from before I started collecting, so when I got the adjustment letter, I could easily see the difference. It's satisfying to understand exactly how those extra working years are paying off! For Hugo and others in similar situations - you're making a smart choice by continuing to work with those higher earnings. Every year you work at $86,000 is likely replacing a much lower earning year from earlier in your career, which means steady benefit increases through AERO. The process really does work exactly as described here!

As a federal employee who just reached FRA last month, this entire discussion has been incredibly reassuring! I was honestly stressed about whether I needed to notify SSA about my continued employment or take any special steps to ensure my higher current earnings get counted properly. Reading through everyone's experiences with AERO has put my mind at ease - knowing that the process is truly automatic and that I just need to wait for that October letter is such a relief. My current GS-14 salary is significantly higher than what I was making in the 1990s and early 2000s, so I'm optimistic about seeing some meaningful increases over the next few years. The tip about keeping a copy of your Social Security statement before starting benefits is gold - I'm going to print mine out today. And Carlos's explanation about wage indexing was a real eye-opener. I had no idea that older earnings are adjusted upward in the calculation, which definitely helps explain why the benefit formula is more complex than it initially appears. For anyone else just starting this journey, this thread has convinced me that continuing to work past FRA with higher earnings is a win-win situation - you get your full benefits now AND the potential for automatic increases later through AERO. Thanks to everyone for sharing such detailed, real-world experiences!

This thread has been absolutely invaluable! I'm 66 and just started collecting Social Security two months ago while continuing to work at $72,000 annually - significantly higher than my career average of around $52,000. I had been worried that I'd need to file special paperwork or make calls to SSA to ensure my continued earnings were properly credited. Reading everyone's experiences with the AERO process has been such a relief. The fact that it's completely automatic and happens every October takes away so much stress. I love Arjun's suggestion about keeping a copy of your Social Security statement from before you start collecting - I'm going to pull mine up online today and save it for comparison. What really gives me confidence is hearing from people like Carlos who have been through multiple recalculations with real dollar amounts. Even his smaller $12 increase in the second year shows the system is working exactly as designed - every higher earning year that can replace a lower one will result in some benefit boost, no matter how small. For anyone else just starting this journey, this discussion has convinced me that the combination of collecting benefits at FRA while continuing to work at higher earnings is truly the best of both worlds. Thanks to everyone for sharing such detailed, practical information!

As someone who's been working in HR for over 20 years and has helped countless employees navigate Social Security decisions, I can confirm that everything shared here about AERO is spot-on. The Automatic Earnings Reappraisal Operation really is one of the best-kept secrets of Social Security - most people have no idea it exists! What I always tell employees approaching FRA is exactly what Hugo discovered: if you're earning significantly more now than your career average, continuing to work while collecting can be incredibly beneficial. Those higher earnings will automatically replace lower years in your calculation, and the increases compound over time. One additional point I'd make - for anyone with gaps in their work history (like time off for raising children or periods of unemployment), the AERO process can be especially impactful since you're potentially replacing zero-earning years. Every year of substantial earnings helps fill in those gaps in your 35-year calculation. The October timing everyone mentioned is consistent with what I've observed helping retirees. SSA is actually quite reliable with this process once you understand how it works. Great thread everyone - this is exactly the kind of practical information that helps people make informed retirement decisions!