Will higher salary at age 62 increase my Social Security at 70? Confused about earnings indexing after 60
Just got a major career break at age 62 with a position paying $23,000 more than I've ever made before! Planning to work until I'm 70, and wondering if this salary boost will significantly increase my SS benefits. I'm confused about something I read regarding earnings not being "indexed" after age 60. What exactly does that mean for someone in my situation? According to my MySocialSecurity account, if I claimed today I'd get about $1,450/month based on my lifetime of mostly lower-paying jobs. It shows $2,175 at FRA (67) and $2,750 at age 70. But those estimates don't include my new higher salary! Will these 8 years of much higher income from 62-70 actually improve my benefit amount? Or is there some cutoff because I'm past 60? Really hoping these higher-earning years will replace some of my lower ones in the calculation. Anyone who understands this complex calculation, please help!
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Ava Johnson
Yes, your higher income will definitely increase your Social Security benefit! The "indexing" issue you're confused about just means that after age 60, your past earnings aren't adjusted for inflation when SSA calculates your benefit. But your actual earnings still count at full dollar value. SSA uses your highest 35 years of earnings to calculate your benefit. If you're earning significantly more now ($23K more is substantial), these years will replace lower-earning years in your calculation. Each higher-earning year that replaces a lower one will increase your PIA (Primary Insurance Amount). The estimates you're seeing in your MySocialSecurity account are based on the assumption you'll continue earning at your previous salary level until you claim. Once you have a few quarters at your new higher salary, log back in and you should see your projected benefits increase.
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ElectricDreamer
•That's SUCH a relief! Thank you for explaining this so clearly. So even though I'm past 60, these higher-earning years will still count and can replace some of my lower years. This makes the decision to keep working until 70 even more worthwhile.
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Miguel Diaz
congrats on the new job! i was in kinda similar spot few yrs back. got big promotion at 63 and worked til 69. my benefit went up by like $380/mo from what they originally estimated!! the SSA looks at ur best 35 yrs no matter when u earned them. if u had some zero or low earning yrs earlier those get replaced by the good ones now
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ElectricDreamer
•Thank you! That's really encouraging to hear a real-world example where the benefit increased significantly. Did you notice your benefit estimate changing in your online account as you worked those higher-earning years?
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Miguel Diaz
•yep, it went up little by little each year. took like 6 months after tax time for the new earnings to show up in my record. just keep checking ur my social security account every year after u file taxes
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Zainab Ahmed
Is ANYONE else sick of how CONFUSING the Social Security Administration makes everything?!! I spent 3 HOURS on the phone trying to get a straight answer about this exact same question last month. Got disconnected TWICE and the third person gave me completely different information than the first two!!! Why can't they just have a simple calculator that shows EXACTLY how each year of work affects your benefit? Instead we get vague estimates and technical jargon nobody understands. The whole system feels designed to confuse us.
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Connor Byrne
•Totally agree with you. I've been trying for weeks to get through to someone about my situation which is similar but also involves some foreign earnings. Can't get anyone on the phone.
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Yara Abboud
•I had the same frustrating experience trying to get through to SSA about benefit estimates. After wasting days getting disconnected, I found Claimyr (claimyr.com) which got me connected to an agent in under 10 minutes. They have a video showing how it works: https://youtu.be/Z-BRbJw3puU The agent I spoke with confirmed that higher earnings after 60 absolutely count toward your benefit calculation. They'll replace lower earning years in your top 35, which can significantly increase your benefit amount when you eventually claim.
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PixelPioneer
Congrats on the new job! But I'm confused about something... I thought once you reach FRA there's no limit on how much you can earn while collecting SS? My brother-in-law is collecting his full benefit while still working full-time at 68. Couldn't you start collecting at 67 (your FRA) while still working those last 3 years until 70?
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Ava Johnson
•You're absolutely right about there being no earnings limit after FRA. The original poster could definitely claim at their FRA (67) while continuing to work until 70. However, there's a different consideration here. By waiting to claim until 70, they'll permanently increase their benefit by 8% per year beyond FRA (so 24% total). If they don't need the income immediately, waiting until 70 provides the maximum possible monthly benefit for the rest of their life. Either approach is valid - claim at FRA while working (get some benefits sooner) or wait until 70 (get larger benefits later). It depends on personal financial needs, health, and longevity expectations.
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Keisha Williams
I work for a financial advisor and deal with Social Security planning daily. Here's what you need to understand about earnings after 60: 1. "Non-indexed" just means the SSA doesn't adjust those earnings for inflation in their calculations 2. Your benefit is based on your highest 35 years of earnings (indexed before 60, actual amounts after 60) 3. Higher earnings now ABSOLUTELY will increase your benefit if they replace lower-earning years 4. The increase might be less dramatic than you hope because: - You already have 40+ years of earnings history - The benefit formula is weighted (gives less credit to higher earnings) - Only earnings up to the annual cap ($168,600 in 2025) count But yes, working these 8 years at higher income will definitely increase your age 70 benefit beyond current estimates.
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ElectricDreamer
•Thank you for such a detailed explanation. I've had many years of low earnings and even some zero years, so these higher-earning years should make a real difference. I'm well below the earnings cap even with my new salary, so all of it will count toward my SS. This makes me much more confident in my plan to work until 70.
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Connor Byrne
My husband and I waited til 70 to claim and it was totally worth it! Our checks are so much bigger than our friends who took SS early. Just make sure you're in good health to enjoy those bigger payments for a long time!!
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PixelPioneer
I've been trying to understand how the 35-year calculation works. What happens if you don't have 35 years of earnings? I took time off to raise kids and only have about 25 years of work. Does that affect how my benefit is calculated?
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Keisha Williams
•If you have fewer than 35 years of earnings, the SSA will still use 35 years in their calculation - they'll just include zeros for the missing years. So someone with 25 years of work would have those 25 years plus 10 zeros averaged together. This is why working longer can be especially beneficial for people with gaps in their work history. Each additional year of earnings replaces a zero year, which can significantly increase your benefit amount.
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Miguel Diaz
just wanna add something nobody mentioned... make sure ur checking ur earnings record on ssa.gov every year!! i found they were missing 2 whole years of my earnings that woulda lowered my benefit if i hadnt caught it. u only have 3 yrs to correct mistakes
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ElectricDreamer
•That's a great point! I just checked mine when I was looking at the benefit estimates and fortunately everything looks correct. But I'll make it a habit to verify each year after I file my taxes.
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Ava Johnson
In case anyone finds this thread later, here's a summary of key points about earnings after 60 and Social Security benefits: 1. Earnings at any age count toward your benefit calculation if they're among your highest 35 years 2. After age 60, earnings are counted at their actual dollar value (not indexed for inflation) 3. Your MySocialSecurity estimates assume you'll continue earning at your current level until you claim 4. Higher earnings between 62-70 can significantly increase your benefit, especially if replacing lower-earning years 5. There's no earnings limit after reaching Full Retirement Age (FRA) 6. Waiting until 70 to claim gives you the maximum possible monthly benefit (an extra 8% per year beyond FRA) 7. Check your earnings record annually to ensure all your income is properly recorded I hope this helps the original poster and others in similar situations!
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ElectricDreamer
•Thank you everyone for all the helpful information! This has cleared up my confusion completely. I'm excited to see how my higher earnings will improve my benefit over the next 8 years. I'll be checking my MySocialSecurity account regularly to watch the estimates increase!
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