Will Social Security recalculate my retirement benefits if I continue working after claiming?

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.

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

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.

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!!!

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.

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?

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.

This is such valuable information! I'm in a similar situation - started collecting at 62 and recently picked up some consulting work. It's reassuring to hear that SSA will automatically recalculate benefits when new earnings can replace lower-earning years. For anyone else in this boat, I'd recommend creating a mySocialSecurity account if you haven't already - being able to track your earnings record and see potential benefit increases online is incredibly helpful. The automatic recalculation typically happens each year after they process your W-2 or self-employment earnings, so you don't need to file any special paperwork or applications.

I'm dealing with a similar situation and this thread has been incredibly helpful! I started collecting at 64 and just started a part-time retail job. One thing I wanted to add that might be useful - if you're working for an employer, make sure they're properly withholding and reporting your Social Security taxes. I had an issue where my previous employer wasn't correctly reporting my earnings to SSA, which delayed my benefit recalculation. It's worth checking your earnings record periodically through mySocialSecurity to ensure everything is being reported correctly. Also, for anyone worried about the earnings test reducing your current benefits - remember that you'll get credit for those "lost" benefits once you reach full retirement age, so it's not money permanently lost, just temporarily withheld.

This is such a comprehensive discussion! As someone who worked in benefits administration before retiring, I wanted to add one important detail that hasn't been mentioned yet. The recalculation process typically takes place between October and December each year, and any benefit increase would show up in your January payment (with a notice sent in December). However, there can sometimes be delays if SSA needs to verify earnings with employers or if there are discrepancies in your earnings record. If you don't see an expected increase by February, it's worth contacting SSA to inquire about the status. Also, keep in mind that the dollar amount of increase might seem modest, but it's inflation-adjusted and permanent for the rest of your life, so even a $30-40 monthly increase can add up to thousands over your lifetime. Great job on finding work that not only provides current income but potentially boosts your future benefits too!

One thing I'd like to emphasize that might not be obvious to everyone - even though you took early retirement and are dealing with the earnings test reductions now, those new work years could actually help offset some of the financial impact of claiming early. When I was in a similar situation, I found it helpful to think of it as a partial "do-over" opportunity. You can't undo the early filing reduction, but you can potentially improve your benefit calculation base. Also, don't forget that once you reach your full retirement age, not only will the earnings test no longer apply, but any months of benefits that were withheld due to excess earnings will be factored into an adjustment that effectively reduces your early filing penalty slightly. It's like getting a small piece of those "lost" years back. The combination of benefit recalculation from new earnings plus this adjustment can make continuing to work quite worthwhile financially, even beyond just the immediate paycheck.

I'm just starting to research this topic as I'm approaching 62 and trying to decide when to claim my benefits. This entire discussion has been incredibly educational! I had no idea that continuing to work after claiming could actually increase your benefits through recalculation. I've been so focused on the earnings test penalties that I never considered the potential upside. The timeline information about recalculations happening October-December with increases showing in January is particularly useful for planning purposes. It's also reassuring to hear from so many people who've successfully navigated this situation. I'm definitely going to set up my mySocialSecurity account right away to start monitoring my earnings record. Thank you all for sharing your real-world experiences - it's much more helpful than trying to decipher the SSA publications on my own!

As someone who's been helping clients navigate Social Security decisions for years, I want to highlight something that often gets overlooked in these discussions. While everyone's focusing on the benefit recalculation (which is absolutely correct), don't forget about the potential impact on your spouse's benefits if you're married. When your Primary Insurance Amount increases due to continued work, it can also increase the potential spousal or survivor benefits your spouse might be eligible for. This is especially important if your spouse hasn't worked much or has lower lifetime earnings. The recalculation doesn't just help you - it can create a ripple effect that benefits your household in multiple ways. Also, for those worried about the complexity of tracking all this, the SSA's Annual Social Security Statement (which you can access online) will show your updated benefit estimates each year, making it easier to see the impact of your continued work without having to do the math yourself.

This has been such an incredibly informative discussion! I'm 61 and have been debating whether to claim early or wait, and reading through everyone's experiences has really opened my eyes to aspects I hadn't considered. The automatic recalculation feature is fascinating - I had always thought that once you claim, your benefit amount is essentially frozen except for cost-of-living adjustments. Learning that continued work can actually increase your monthly payment through replacing lower earning years is a game-changer for my planning. I'm particularly intrigued by the points about spousal benefits potentially increasing as well, and the fact that benefits withheld due to the earnings test aren't permanently lost. It sounds like there are multiple mechanisms built into the system to help offset some of the penalties of early claiming if you continue working. I'm definitely going to create my mySocialSecurity account this week to start tracking my earnings record more closely. Thank you all for sharing your real-world experiences - this kind of practical knowledge from people who've actually navigated these situations is invaluable!

This entire discussion has been incredibly enlightening! As someone who's been on the fence about when to claim my benefits, reading through everyone's real-world experiences has completely changed my understanding of how Social Security works after claiming. I had no idea that the system was designed with so much flexibility - the automatic benefit recalculation, the credit for withheld earnings test benefits at FRA, and even the potential impact on spousal benefits. It's reassuring to see that continuing to work after claiming isn't just about surviving the temporary reductions, but can actually provide long-term financial benefits. The practical tips about using the mySocialSecurity account to track everything and the timeline details about when recalculations happen are incredibly valuable. Thank you all for creating such a comprehensive resource - this is exactly the kind of real-world knowledge that's impossible to find in the official SSA publications!

This has been such an incredibly valuable thread! As someone who's currently 62 and wrestling with the claiming decision, I've learned more from this discussion than from months of trying to navigate the SSA website on my own. The key insight that really resonates with me is understanding that claiming early doesn't lock you into a "forever penalty" if you continue working - there are actually multiple ways the system can help offset some of those early filing reductions over time through benefit recalculation and the earnings test credit adjustments at FRA. I'm particularly grateful for the practical details like the October-December recalculation timeline and the reminder to verify employer earnings reporting. It's also eye-opening to learn about the potential spousal benefit impacts. I think what makes this discussion so powerful is how it shows that Social Security strategy isn't just about the claiming decision itself, but about understanding how your post-claiming work life can still positively influence your long-term benefits. Thank you all for sharing your experiences so generously - this community knowledge is absolutely invaluable for those of us still navigating these complex decisions!

I'm new to this community but wanted to share my experience since it directly relates to the original question. I claimed my Social Security benefits at 62 three years ago and have been working part-time ever since - first at a local library, then doing some bookkeeping for small businesses. Each year, I've seen my benefit amount increase slightly due to the automatic recalculation, and it's been such a relief to know the system actually works as designed! What I found most helpful was setting up automatic notifications through my mySocialSecurity account so I get alerts when my benefit estimates are updated. One thing I learned the hard way though - make sure to keep detailed records of your work earnings throughout the year, especially if you have multiple employers or do any 1099 work. Last year there was a small discrepancy that took a few months to sort out, but SSA was actually quite helpful once I provided my documentation. For anyone on the fence about working after claiming - the combination of immediate income plus the long-term benefit increases has made it absolutely worthwhile for my situation. The earnings test can be frustrating in the short term, but knowing those "lost" benefits will be credited back at FRA makes it much more manageable psychologically.

As someone who's been working in Social Security policy research for over a decade, I wanted to add some technical context that might be helpful. The automatic recalculation process mentioned throughout this thread operates on what's called a "substitution year" basis - SSA compares your new annual earnings to each of the 35 years currently used in your benefit calculation and substitutes any year where your new earnings are higher. What's particularly interesting is that this can happen even decades after you initially claimed. I've seen cases where someone who claimed early worked sporadically for 10-15 years afterward and saw multiple benefit increases over time as their part-time earnings gradually replaced several low-earning years from their youth. The key point everyone should understand is that your benefit calculation is truly dynamic as long as you continue to earn covered wages or self-employment income. Also, for those concerned about tracking - the SSA's internal systems are actually quite robust at capturing earnings data automatically from employer W-2 reports and self-employment tax filings, so while keeping your own records is smart, the vast majority of earnings updates happen seamlessly without any action required from the beneficiary.

This technical explanation is incredibly helpful! As someone who's been wondering about the long-term implications of working sporadically after claiming, knowing that the "substitution year" process can continue working in my favor for years or even decades is really encouraging. I hadn't realized that even intermittent part-time work could gradually replace multiple low-earning years from earlier in my career. Your point about the SSA's internal systems being robust at capturing earnings automatically is also reassuring - I've been worried about whether I need to manually notify them about my part-time work, but it sounds like the W-2 and tax filing process handles most of that automatically. Having this kind of policy research perspective really helps put all the personal experiences shared in this thread into a broader context. It's fascinating that the benefit calculation remains truly dynamic throughout your entire working life, not just until you claim. Thank you for bringing this professional insight to the discussion!