Will Social Security recalculate my retirement benefits if I continue working after claiming?
I started collecting my Social Security retirement at 63 last year (I know, took an early hit but needed the income). Now I've found a decent part-time job and I'm wondering - since I'm paying FICA taxes again, will SSA automatically recalculate my benefit amount based on these new earnings? Or are my benefits permanently locked in at what they were when I first claimed? I'm earning about $18,500 annually at this job and expect to keep working for at least 3-4 more years. I understand they'll reduce my current benefits because I'm earning over the limit, but I'm more curious about whether these new work years might eventually INCREASE my benefit amount down the road?
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Mei-Ling Chen
Yes, the SSA will automatically recalculate your benefit amount each year if your additional earnings increase your Average Indexed Monthly Earnings (AIME). Since you're working and paying FICA taxes, those earnings will appear on your earnings record. If these new earnings replace lower or zero earnings years in your highest 35 years calculation, your benefit will increase. The recalculation happens automatically - you'll receive any increase due the year after you earn the wages, usually reflected in your January payment after they process your prior year's earnings.
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DeShawn Washington
•That's great news! I wasn't sure if the recalculation was automatic or if I needed to apply for it somehow. So even though I took early retirement at 63, these new earnings could actually bump up my monthly payment? I didn't realize that was possible.
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Sofía Rodríguez
they definitely do adjust it! my dad kept working after he started collecting and his payment went up twice. but watch out because if ur under FRA theyll take back $1 for every $2 you earn over the limit
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DeShawn Washington
•Thanks for sharing about your dad's experience! Yeah, I'm aware of the earnings limit reduction - that's already happening with my current checks. I'm just happy to know there might be a silver lining with a potential increase later.
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Aiden O'Connor
I'd like to add a nuance to this discussion. The recalculation isn't quite as straightforward as some might think. SSA only recalculates if the new earnings are substantial enough to replace one of your previous 35 highest earning years. If you had 35 years of good earnings already, a part-time job might not make much difference. Also keep in mind that the early filing reduction percentage you took at 63 remains permanent - the recalculation just applies to your primary insurance amount before that reduction is applied.
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DeShawn Washington
•That makes perfect sense. I did have some lower-earning years and a couple years I didn't work at all in my 35-year calculation, so these new earnings will definitely replace some zeros or low years. Good point about the early filing reduction remaining permanent - I hadn't thought about that aspect.
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Zoe Papadopoulos
CAREFUL!!! The SSA is NOTORIOUS for messing this up! They're supposed to do it automatically but I had to FIGHT for almost 8 months to get my recalculation done correctly. They kept saying they'd done it but when I checked the math it was WRONG! Make sure you keep track of EVERYTHING yourself and check their work!!!
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Jamal Brown
•While it's good to keep records, most recalculations happen correctly. The automatic process works for millions of beneficiaries each year. If you're concerned, you can request an earnings statement through your my Social Security account at ssa.gov to verify all your earnings are properly recorded. Most calculation issues stem from earnings not being properly reported rather than SSA errors in the formula application.
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Fatima Al-Rashid
This happened to my neighbor and yes they adjusted his benefits up a little bit. Wouldn't count on it being a huge increase though.
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Giovanni Rossi
I've been trying to get through to SSA for weeks to ask this exact question! Every time I call, I'm on hold forever and then get disconnected. It's absolutely maddening. Has anyone found a reliable way to actually TALK to a human at Social Security?
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Aiden O'Connor
•I recently discovered a service called Claimyr that helps get through to SSA phone representatives much faster. It basically holds your place in line and calls you when an agent is available. Saved me hours of frustration when I needed to sort out my survivor benefits. You can check out how it works at claimyr.com or watch their demo at https://youtu.be/Z-BRbJw3puU - completely changed my experience with reaching SSA.
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Giovanni Rossi
•Thank you so much! I'll check that out right now. Anything is better than listening to that hold music for hours just to get disconnected!
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DeShawn Washington
I just wanted to update everyone - I checked my mySocialSecurity account online and found the section showing estimated future benefit increases based on continuing work. Looks like even my part-time earnings should increase my benefit by about $45-60/month once I reach my full retirement age. Not life-changing, but definitely adds up over time! Thanks for all the helpful information.
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Mei-Ling Chen
•That's excellent! The mySocialSecurity portal is a great resource for monitoring these changes. Just remember that estimate is before the early filing reduction gets applied. Since you filed at 63, you'd have approximately a 20% permanent reduction, so the actual increase would be about 80% of what's shown. Still very worthwhile though!
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