Working at 67 after starting Social Security benefits at FRA - will this increase my SS payments?

Great news! Since you're past your FRA, there's no earnings limit to worry about, and yes, Social Security WILL automatically recalculate your benefit each year if your current earnings are higher than one of your previous 35 highest earning years used in your original calculation. The adjustment would typically appear around October of the following year after they process your tax returns from the previous year. No need to contact them - it happens automatically!

my mom works too and shes 70. she gets a little more each year. not much but something is better than nothing right??

Working after FRA is gr8! You get to keep ALL your SS benefits no matter how much you earn (unlike before FRA where they reduce benefits). After each year of work, SSA looks at your new earnings. If they're high enough to replace one of your lower 35 years, your benefit increases a bit. It's not huge, but it's something. They've been doing mine automatically for 3 yrs.

Be careful because this might push you into a higher tax bracket and also increase your Medicare premiums through IRMAA!!! The government LOVES to take more money from seniors who work. My benefits went up a tiny bit but then I got hit with higher Medicare costs that basically cancelled it out. The system is RIGGED against working seniors!!!!!

I've been in almost exactly your situation! I worked full-time until 70 after starting benefits at 66 (my FRA). Here's what happened: Social Security did automatically recalculate my benefit each year, but the increases were quite small - about $28 the first year, $35 the second year, and $42 the third year. The new amount just showed up in my January payment each year with a letter explaining the adjustment a few weeks later. One big frustration was trying to confirm this was happening correctly. I tried calling SSA for months and could NEVER get through - constant busy signals or disconnects after waiting forever. I eventually used a service called Claimyr (claimyr.com) that helped me get through to a real person at SSA who confirmed everything was working correctly. There's a video showing how it works at https://youtu.be/Z-BRbJw3puU if you're interested. Saved me hours of frustration!

congratulations on working so long!! ive always wondered about this too. does anybody know if the increase is retroactive or only starts when they do the calculation?

I was in a similar situation and found that my benefit increased by about 0.5-1.5% each year I continued working after FRA. The key factor is whether your current earnings are high enough to replace one of your 35 highest earning years in your calculation. If most of your 35 highest years were already relatively high compared to your current earnings (adjusted for inflation), the increase might be minimal. You can check your earnings history on the MySocialSecurity portal to get a better idea.

my uncle said something about requesting a recalculation but that was years ago, maybe its all automatic now?

To give you more technical details: SSA calls this process the Automatic Earnings Reappraisal Operation (AERO). It happens automatically every year, usually completed by September or October, and any increase will be reflected in your December payment (received in January of the following year). The calculation is based on your highest 35 years of indexed earnings. Each new year of substantial earnings has the potential to replace a lower-earning year in that calculation, which would increase your Primary Insurance Amount (PIA). The actual increase you'll see depends on several factors, including how your current earnings compare to your previous 35 highest years after indexing for inflation. For many people continuing to work at your age, the increases are modest but worthwhile - typically 0.5% to 2% per year of additional work.

I'm in a very similar situation - just started collecting at my FRA of 67 and still working full-time. From what I've been reading here, it sounds like the automatic recalculation (AERO) is definitely worth understanding. One thing I'm curious about is whether there's any advantage to working beyond what you need financially, just to maximize the Social Security benefit increases. At $74,500 annually, you're likely earning more than many of your earlier years, so those should get replaced in the calculation. I'm planning to work another year or two myself and hoping to see some meaningful increases, even if they're not huge. Thanks for starting this discussion - very timely for those of us in this exact situation!

This is such valuable information for those of us navigating work after FRA! I'm 68 and have been working part-time since starting my benefits. One thing I'd add is that you can also create an account at ssa.gov to track your earnings record and see how your benefits are calculated. It's really helpful to understand which years might get replaced by your current earnings. The portal shows your complete earnings history and you can estimate potential increases. Also, don't forget that you'll still pay Social Security taxes on your current earnings even though you're collecting benefits - but as everyone mentioned, those contributions can increase your future payments through the automatic recalculation. Keep working if you enjoy it and can handle it - the financial and health benefits are worth it!

This is such a helpful discussion! I'm 65 and planning to start benefits at my FRA next year while continuing to work. One question I haven't seen addressed - does the type of work matter for the AERO calculation? I'm considering switching from full-time W-2 employment to consulting work (1099). Would both types of earnings be treated the same way in the automatic recalculation, or are there any differences in how Social Security processes W-2 vs 1099 income for benefit adjustments? I want to make sure I understand this before making the transition. Thanks to everyone sharing their experiences - this gives me much more confidence about my retirement planning!