Will hitting 2025 OASDI maximum while working after FRA increase my Social Security payment?
Just hit my Full Retirement Age last week and applied for my SS benefits to start in June. I'm planning to keep working until December this year (2025). My employer pays really well and I'll probably hit the maximum taxable earnings limit (around $175,000 I think?) by October. What I'm confused about is whether this year's earnings will bump up my benefit amount by replacing one of my lower-earning years in the calculation? I had about 5 years in my work history where I earned almost nothing due to caring for my parents, and I'm wondering if these high earnings right after FRA will knock one of those zero years out of my calculation. Also, since I've already applied, will SSA automatically recalculate my benefit amount if this year's earnings are high enough to change things? Or do I need to contact them and request some kind of recalculation after filing my taxes? Thanks for any help understanding how this works!
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Aileen Rodriguez
Yes, this year's earnings can absolutely replace a lower year in your calculation! Social Security uses your highest 35 years of earnings (indexed for inflation) to calculate your benefit. If you have fewer than 35 years of earnings, you have zeros in the calculation. Since you'll be earning enough to hit the maximum taxable earnings in 2025, this will definitely replace one of your low/zero years. The great thing is that SSA automatically recalculates your benefit each year if you continue working. You don't need to contact them or request anything. You should see the increase in your benefit amount beginning in December 2026 (they process 2025 earnings in late 2026). The increase might not be huge, but every bit helps, especially with inflation.
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Bruno Simmons
•That's great to know! So they'll just automatically adjust my payment in late 2026 without me having to do anything? I was worried I'd need to file some special paperwork or something. Any idea roughly how much of a bump I might see from replacing one zero-income year with a maximum-income year? Just ballpark?
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Zane Gray
my brother in law did the same thing worked 2 years past FRA and got like $175 more a month when they readjusted his payment but this was back in 2023 so probably different now. dont expect it to happen right away takes them forever to do anything lol
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Bruno Simmons
•Thanks for the real-world example! $175 more per month would actually be pretty significant over time. That's over $2,000 a year! Fingers crossed my increase might be somewhere in that range.
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Maggie Martinez
The automatic recalculation happens annually, but there's a significant time lag. Your 2025 earnings won't be reflected until after you file your 2025 taxes, and the adjustment typically appears in your payments around October-December 2026. As for how much it will increase your benefit - it depends on your overall earnings history. Replacing a zero year with a maximum year could increase your monthly benefit by $100-200 based on what I've typically seen, but it varies considerably based on your specific earnings record. One important note: since you're working past FRA, the earnings test doesn't apply to you. You'll receive your full SS benefit regardless of how much you earn, and then potentially get that nice bump later when they recalculate.
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Alejandro Castro
•wait I thought if you earn over the limit they take away some of your benefits? My uncle lost like half his check when he kept working
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Monique Byrd
The SSA's systems are TERRIBLE at handling this stuff automatically. I worked for 3 years after starting benefits and they NEVER adjusted my payment until I went into the office and DEMANDED they recalculate. Suddenly I got a $3200 backpay check and $130 more each month!!! Don't trust them to do this automatically. Mark your calendar for January 2027 and if you don't see an increase by then, call them!!! The squeaky wheel gets the grease with these people.
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Bruno Simmons
•Wow, that's concerning. I'll definitely make a note to follow up if I don't see a change by early 2027. Thanks for the warning!
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Jackie Martinez
Hi im in a similar boat turned 67 in January started my ss in February but still working. Do we need to notify Social security that were still working or do they just know from our tax returns?
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Aileen Rodriguez
•You don't need to notify them that you're working. The IRS shares your earnings information with SSA automatically when you file your tax return. The system will detect your continued work and adjust your benefit if needed. Just make sure your earnings are properly reported on your W-2 or self-employment tax forms.
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Lia Quinn
I tried calling SSA multiple times last month with questions about my post-FRA earnings and couldn't get through - kept getting disconnected after waiting for hours. Finally I used Claimyr (claimyr.com) and got connected to a rep in 20 minutes. They have a video showing how it works: https://youtu.be/Z-BRbJw3puU The agent confirmed what others have said - they'll automatically recalculate your benefit based on 2025 earnings, but not until late 2026. She also recommended keeping your Social Security Statement (the one showing all your yearly earnings) and comparing it to next year's to make sure your 2025 high earnings actually show up correctly.
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Bruno Simmons
•Thanks for the suggestion! I've been dreading having to call them. I'll check that service out if I need to reach someone at SSA. The tip about checking my yearly statement is really helpful too - didn't think to verify that my earnings get recorded correctly.
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Zane Gray
so does this mean i should keep working after starting ss??? im turning 66 and 8 months this summer which is my FRA i think
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Aileen Rodriguez
•It depends on your situation. If you're able and willing to work, and especially if your current earnings are higher than some years in your past, then yes - working after FRA while collecting Social Security can be advantageous. You'll get your full benefit regardless of how much you earn (no earnings limit after FRA), plus possibly get a benefit increase later if these earnings replace lower years in your calculation.
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Alejandro Castro
Quick question related to this - I'm 63 and taking SS early but still working part time. Is it the same for me? Will they recalculate my benefits if I'm earning good money now?
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Maggie Martinez
•Yes, the recalculation works the same way if you're collecting early, BUT since you're under FRA, you're also subject to the earnings limit (about $21,240 for 2025). If you earn more than that, SSA will withhold $1 in benefits for every $2 you earn above the limit. The good news is that once you reach FRA, they'll adjust your benefit upward to account for the months they withheld benefits. And yes, any higher earnings can still replace lower years in your 35-year calculation, potentially increasing your benefit amount later.
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