Will working past Full Retirement Age with higher earnings increase my Social Security benefit?

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.

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

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.

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!!!

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.

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.

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.

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.

Great question! Yes, your coworker is definitely wrong about this. The Social Security Administration does an automatic review every year to see if your new earnings should replace any of your lower-earning years in the calculation. Since your benefit is based on your highest 35 years of indexed earnings, and you're currently making $95,000 compared to some years in the $40,000-$45,000 range, you should definitely see some increase in your monthly benefit. The SSA will automatically do what's called an Automatic Earnings Recomputation (AER) typically in the fall following the year you earned the higher wages. One thing to keep in mind is that the increase might not be as dramatic as you'd hope since the Social Security benefit formula applies different percentages to different income brackets, and higher earners see smaller percentage increases. But any increase is still welcome! You should start seeing these adjustments reflected in your payments, usually without having to do anything on your end. Keep track of your benefit statements and payment amounts - many people don't even notice when these small increases happen, but they do add up over time.

I went through this exact same situation a few years ago! I worked until age 69 and was worried I wouldn't see any benefit increase despite earning significantly more than my earlier career years. Here's what actually happened: SSA did automatically recalculate my benefits each year, and I saw modest increases - usually between $35-60 per month each year. It wasn't life-changing money, but over the course of working those extra 2 years past FRA, my monthly benefit increased by about $115 total. One tip: Create a my Social Security account online if you haven't already. You can view your earnings record there and see which years are currently being used in your calculation. This will give you a better idea of which low-earning years your current $95k salary might replace. Also, don't expect to see increases immediately - there's typically about a 10-12 month lag between when you earn the money and when it shows up in your benefit amount. But the increases are retroactive, so you'll get the full amount once it's processed. Your coworker is definitely misinformed - continuing to work absolutely can and likely will increase your monthly payments!

I'm glad to see so many helpful responses here! As someone new to the Social Security system, this conversation has been really educational. I'm still a few years away from retirement age, but I'm already thinking about whether I'll want to continue working past my FRA. One thing I'm curious about - for those of you who have experienced these benefit increases from working past FRA, do you think it was worth it financially when you factor in the additional taxes you had to pay on your higher earnings? I know Social Security benefits can be taxable too, so I'm wondering if the net benefit is still meaningful after accounting for the tax implications of continuing to work at higher salary levels. Also, does anyone know if there are any differences in how this works for people who are married and filing jointly versus single filers? I assume the Social Security calculation itself is the same, but I'm curious about the broader tax picture. Thanks again to everyone who shared their experiences - this has been incredibly helpful for my retirement planning!

This is such a valuable discussion! As someone who's been working in retirement benefits counseling for over 15 years, I can confirm that your coworker is absolutely incorrect. The Social Security Administration does indeed perform automatic earnings recomputations each year you continue working past FRA. Here's what many people don't realize: the system is actually designed to reward continued work. Your benefit calculation uses your highest 35 years of indexed earnings, and if your current $95,000 salary exceeds any of those earlier years in the $40,000-$45,000 range, those lower years will be replaced in the calculation. The timing is predictable - SSA typically processes these recomputations in October for the previous tax year's earnings, with any increases appearing in your December benefit payment. You'll receive a notice explaining the change, though many people miss these letters. One important note: while the increases may seem modest (often $30-$80 per month), remember that Social Security benefits are inflation-adjusted for life. So a $50 monthly increase today becomes much more valuable over a 20-30 year retirement period. I'd recommend creating a my Social Security account online to track your earnings record and see exactly which years might be replaced. This will give you a clearer picture of your potential benefit increases.

This is such helpful information! I'm 64 and planning to work until at least 70, so this discussion is really relevant for my situation. One thing I'm wondering about - does the automatic recomputation happen even if you're collecting spousal benefits instead of your own retirement benefit? My wife has a much higher earnings record than me, so I was planning to claim spousal benefits at my FRA while continuing to work. Would my continued earnings still be tracked for potential future benefit increases on my own record, even if I'm not currently collecting on it? I know I could potentially switch from spousal benefits to my own record later if it becomes advantageous, but I want to make sure SSA is still crediting my post-FRA earnings to my record during those years when I'm collecting spousal benefits instead.

As someone just starting to navigate this whole Social Security system, this thread has been incredibly informative! I'm 62 and was considering retiring at my FRA, but after reading all these responses, I'm now thinking it might be worth working a few extra years if my current earnings are higher than my earlier career years. One thing I'm still confused about though - when people mention the "highest 35 years of indexed earnings," what does "indexed" mean exactly? Does that mean they adjust older earnings for inflation somehow? I'm wondering because I made $35,000 in 1990, but that probably had more purchasing power than $35,000 today. Does SSA account for this when they're comparing my old earnings to current ones for the recomputation? Also, is there anywhere I can see what my "indexed" earnings look like, or would I need to call them? I'd love to get a better sense of which years might actually get replaced if I continue working at my current salary level. Thanks to everyone who's shared their experiences - this has definitely changed my retirement timeline thinking!

This is such a comprehensive discussion! As someone who's been helping my elderly parents navigate Social Security issues, I wanted to add one practical tip that might help others in similar situations. If you're continuing to work past FRA and want to track whether you're actually getting the automatic recomputations, I'd suggest taking a screenshot or photo of your benefit verification letter each year around December/January. That way you have a clear record of when increases happened and by how much. My father worked until age 69 and we noticed his benefit crept up slowly over those extra years - about $42 the first year and $67 the second year. Nothing dramatic, but definitely noticeable over time. What surprised us was that SSA never sent any kind of congratulatory notice saying "your benefit increased due to continued work" - the increases just quietly appeared in his payments. One thing we learned the hard way: if you suspect you should have gotten an increase but didn't see one, don't wait to inquire. My dad's second-year increase was delayed by about 6 months due to what SSA called a "processing backlog," but once we called and brought it to their attention, they corrected it and issued the back payments pretty quickly. Your coworker is definitely wrong - keep working if you want to and can, those higher earnings will eventually show up in your monthly check!

This has been such an enlightening thread! As someone who just turned 66 and is considering my retirement timing, reading everyone's real experiences has been incredibly valuable. It's clear that your coworker was definitely misinformed - the automatic recomputation system is real and does work, even if the increases aren't huge. What I find most helpful is hearing the actual dollar amounts people have seen - the $28-75 monthly increases mentioned by several folks gives me a realistic expectation of what to expect. And the tip about creating a my Social Security account to review your earnings record is something I'm definitely going to do this week. One thing that strikes me from all these responses is how much the timing varies - some people see increases in December, others mention delays of 6-12 months. It sounds like patience is key, but also important to follow up if you think something should have happened but didn't. Thanks to everyone who shared their personal experiences and professional knowledge. This thread should be bookmarked for anyone wondering about working past FRA!

As someone who recently went through this exact situation, I can confirm your coworker is absolutely wrong! I worked 2 additional years past my FRA and saw my monthly benefit increase each year through the automatic recomputation process. The key thing to understand is that Social Security uses your highest 35 years of indexed earnings for the calculation. Since you're currently earning $95,000 versus some earlier years at $40,000-$45,000, those lower years will likely be replaced in your calculation, resulting in a higher monthly benefit. From my experience, the increases weren't huge but were definitely meaningful - I saw increases of about $45-60 per month each year. The timing is pretty predictable too: SSA processes these recomputations around October for the previous year's earnings, and you'll see any increase reflected in your December payment. One practical tip: set up a my Social Security account online if you haven't already. You can review your complete earnings history there, which will help you identify which lower-earning years your current salary might replace. While the account doesn't explicitly show which 35 years are being used in your current calculation, you can easily spot the years that would likely be swapped out. Don't let your coworker discourage you from continuing to work if that's what you want to do - the system absolutely does reward continued earnings past FRA!

I'm in a very similar situation and this thread has been incredibly helpful! I'm 67 and just started collecting Social Security last month while continuing to work full-time. Like you, I was told by someone that working wouldn't increase my benefits, which didn't make sense to me either. Reading all these responses has given me so much clarity - especially the real-world examples people have shared about seeing $30-75 monthly increases from continuing to work. It's encouraging to know that even though the increases might be modest, they're still meaningful over the long term, especially when you factor in COLA adjustments. I'm definitely going to create a my Social Security account this week to review my earnings record and see which of my lower-earning years from the 1980s and 1990s might get replaced by my current salary. The tip about taking screenshots of benefit verification letters each year to track changes is brilliant too. One question for those who have been through this - did you notice the increases right away in December, or did it sometimes take a few extra months? I want to make sure I'm watching for the right timing so I don't miss any changes or think there's a problem when there isn't. Thanks to everyone who shared their experiences - you've definitely convinced me that continuing to work is worth it financially!