Will working past Full Retirement Age with higher earnings increase my Social Security benefit?
I turned 67 (my Full Retirement Age) last month and started collecting Social Security. I'm still working full-time and expect to continue for another 3-4 years. My current salary is actually higher than most of my career earnings that were used to calculate my benefit. Someone at work told me that continuing to work won't change my monthly SS payment amount, even though these would be higher-earning years than some included in my calculation. That doesn't seem right to me - shouldn't my benefit increase if I'm replacing lower earning years? Can anyone clarify if working past FRA with higher earnings will eventually increase my monthly check? Thanks!
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Tobias Lancaster
Yes, working after FRA can potentially increase your benefit! Social Security calculates your benefit based on your highest 35 years of earnings. If your current earnings are higher than some of those years included in your original calculation, SSA will automatically recalculate your benefit annually to include these new higher-earning years. This is called an Automatic Earnings Recomputation (AER) and typically happens in the fall of the year after you earn the higher wages. So if you're earning more now than some of those 35 years, you should see some increase in your benefit amount.
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Sophia Gabriel
•Thank you so much! That's exactly what I was hoping. Do you know approximately how much of an increase I might see? For context, I'm making about $95,000 now, and some of my earlier included years were around $40,000-45,000.
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Ezra Beard
ur coworker is wrong lol. SSA looks at ur highest 35 yrs. if ur making more now then some of those years, theyll replace the lower ones with higher ones and recalculate. my dad's check went up like $75/month after working 2 years past his FRA
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Statiia Aarssizan
•This happened to my aunt too! Except it only went up like $38 a month for her so don't expect anything huge
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Reginald Blackwell
The SSA will automatically review your record each year you work and pay into Social Security. If your current earnings will increase your benefit amount, they will process an automatic recomputation and pay you any increase due. HOWEVER, just because you're working and earning more doesn't guarantee a significant increase. I've had many clients disappointed by how small the increases were, especially if they already had 35 strong earning years. Remember that increases are calculated using a complex weighted formula where only a percentage of your earnings above certain thresholds count toward your PIA (Primary Insurance Amount). This means that $50,000 more in earnings might only translate to a $30-40 monthly increase in benefits. Also, any recalculation won't happen immediately - typically it takes until the fall of the following year for the earnings to be processed and any increase to be applied.
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Sophia Gabriel
•Thanks for the detailed explanation. I was hoping for a more substantial increase, but I guess even a small bump is better than nothing. Is there any way to estimate how much my benefit might increase based on replacing those lower-earning years?
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Aria Khan
MY BROTHER IN LAW WORKED 3 YEARS PAST RETIREMENT AND SSA NEVER GAVE HIM ONE PENNY MORE!!!! He called and called and they kept telling him "it's processing" or "we'll look into it" but NOTHING EVER HAPPENED. Don't count on getting anything extra. The whole system is rigged against seniors who work hard their whole lives!!!
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Tobias Lancaster
•It's possible your brother-in-law didn't see an increase because his additional work years weren't higher than any of his existing 35 highest years. Or there could have been a processing error. He should request a detailed earnings record and calculation explanation from SSA if he thinks there's a mistake.
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Everett Tutum
I'm dealing with the exact same situation! I've been working 2 years past my FRA (turned 67 in 2023) and wondered about this too. I tried calling SSA multiple times to ask about when these recalculations happen, but I keep getting disconnected or waiting for hours. It's so frustrating trying to get a simple answer. I found a solution though - I used a service called Claimyr (claimyr.com) that got me connected to a real SSA agent in about 20 minutes instead of waiting for hours. They have a video showing how it works here: https://youtu.be/Z-BRbJw3puU The agent explained that the recalculation happens automatically around October for the previous year's earnings, and I should see any increase in my December payment. He checked my record and confirmed my 2023 earnings will replace a lower year from 1985, so I'll get a small increase. Might be worth checking on your specific situation too.
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Sophia Gabriel
•Thank you for sharing this! I've been trying to call SSA for other questions too and it's impossible to get through. I'll check out that service because I'd really like to know exactly how my specific situation will work out.
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Sunny Wang
Wait im confused... i thought SS and SSI were the same thing? Does this work for SSI too? I get SSI payments and work part time.
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Reginald Blackwell
•No, they're completely different programs. SSI (Supplemental Security Income) is a needs-based program with strict income and asset limits. Working while on SSI will reduce your payment amount immediately. The original poster is talking about Social Security retirement benefits, which are based on your lifetime earnings and contributions to the system. These are sometimes called OASDI (Old Age, Survivors and Disability Insurance) benefits. For SSI recipients, earning more will generally reduce your payment, not increase it.
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Statiia Aarssizan
My mom just went through this! She worked until 70 and her benefit went up a little bit each year. It wasn't huge money but every dollar counts these days. I think last year it went up about $28/month because of her extra earnings. She said they never notified her about it - she just noticed the deposits were a little higher.
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Sophia Gabriel
•Thanks for sharing that real-world example. I'll keep an eye on my deposits to spot any changes. Even $28/month adds up over time!
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Tobias Lancaster
To answer your follow-up question about estimating the potential increase: It's complicated, but here's a simplified approach. The SSA calculation takes your highest 35 years of earnings (after indexing for inflation), averages them, then applies a formula with 3 different percentage tiers (90%, 32%, and 15%). As a VERY rough estimate, if you replace a $40,000 year with a $95,000 year, the difference is $55,000. Since you're likely in the 15% replacement tier with your earnings level, you might see approximately 15% of that difference divided by 12 months. So potentially around $55,000 × 15% ÷ 12 = $687.50 per year or about $57 per month increase. This is oversimplified and your actual increase could be more or less, but it gives you a ballpark idea. The SSA's annual recomputation is automatic, so you'll see any increase reflected in your benefit eventually.
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Sophia Gabriel
•Thank you - that's exactly the kind of estimate I was hoping for! I understand it's rough, but it helps set realistic expectations. I appreciate you taking the time to break this down.
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