Three Common Ways Your Social Security Payment Can Grow After Retirement
Reading Time: 2 MinutesLast Updated: June 21, 2018
You made the choice and now you are happily retired. You filed online for your Social Security benefits. They arrive each month in the correct amount exactly as expected. But, did you ever wonder if your Social Security check could increase?
Once you begin receiving benefits, there are three common ways benefit checks can increase: a cost of living adjustment (COLA); additional work; or an adjustment at full retirement age if you received reduced benefits and exceeded the earnings limit.
The COLA is the most commonly known increase for Social Security payments. We annually announce a COLA, and there’s usually an increase in the Social Security and Supplemental Security Income (SSI) benefit amount people receive each month. By law, federal benefit rates increase when the cost of living rises, as measured by the Department of Labor’s Consumer Price Index (CPI-W). More than 66 million Americans saw a 2.0 percent increase in their Social Security and SSI benefits in 2018. For more information on the 2018 COLA, visit our website.
Social Security uses your highest thirty-five years of earnings to figure your benefit amount when you sign up for benefits. If you work after you begin receiving benefits, your additional earnings may increase your payment. If you had fewer than 35 years of earnings when we figured your benefit, you will replace a zero earnings year with new earnings. If you had 35 years or more, we will check to see if your new year of earnings is higher than the lowest of the 35 years (after considering indexing). We check additional earnings each year you work while receiving Social Security. If an increase is due, we send a notice and pay a one-time check for the increase and your continuing payment will be higher.
Maybe you chose to receive reduced Social Security retirement benefits while continuing to work. You made the choice to take benefits early, but at a reduced rate. If you exceeded the allowable earnings limit and had some of your benefits withheld, we will adjust your benefit once you reach full retirement age. We will refigure your payment to credit you for any months you did not receive payments. Your monthly benefit will increase based on the crediting months you receive. You can find additional information about working and your benefit by reading What You Need to Know When You Get Retirement or Survivors Benefits.
Retirement just got more interesting since you learned about potential increases to monthly payments. Social Security has been securing your today and tomorrow for more than 80 years with information and tools to help you achieve a successful retirement.
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Tags: retirement, retirement benefits
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Jim Borland, Acting Deputy Commissioner for Communications
Jim Borland, Acting Deputy Commissioner for Communications
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David C.
I began receiving my social security benefit payment at age 66. I have continued to work and my last three years of work have been my highest earning years by far.
Currently, I am paying into Social Security Employee Tax approximately $500.00 to $600.00 each month. My benefit amount is $2556 per month.
Point is it doesn’t seem right that I pay into it while receiving it. This effectively reduces my benefit by five to six hundred dollars per month and the amount I collect at age 70 will not be as much as if I had not elected to begin receiving it at normal retirement age.
JoAnn R.
I am urning 76 November 19,2018, I called social security last year to find out why, since I always make 10,000 to 12,000 more each year buy cleaning a business and by dog setting, I wondered why my meager Social Security was not continuing to grow; I was informed that after age 70 my Social Security benefits will not increase due to the amount I earn, even if these years are higher than many of my 35 best years. This is so unfair; when did this rule become effective and who was responsible for thils? Who would I contact to try to get this rule changed?
Jacqueline A.
How can I get help paying for my drugs in medigap? I’m overwhelmed at having only $2500 in savings, not able to work due to physical disability ( respiratory). And having to pay $154.00 for a med I n Ed but not taking now because I can’t afford it.
Nancy L.
Thank you. I appreciate the education as this is all new for me.
William. F.
What is the full retirement birth yr 1948
Ray F.
Hello William. If you were born between 1943 and 1954 your full retirement age is 66.
Michael J.
I returned to work in 2017, and paid FICA on approximately $65,000 in earnings, which is more than I earned in some of my highest 35 years of covered employment . I have not noticed any increase in my benefit level for that one year of work.
Ray F.
Hello Michael. Each year, we review the records for all working Social Security recipients to see if additional earnings may increase their monthly benefits.
When you apply for retirement benefits, we base your benefit payment on your highest 35 years of earnings and your age when you start receiving benefits. If your earnings for the prior year are higher than one of the years we used to compute your retirement benefit, we will recalculate your benefit amount.
If an increase is due, a new monthly benefit amount is established on your record automatically and a notice is mail to you. We pay the increase retroactive to January the year after you earned the money.
See “Getting Benefits While Working” for more information. Thanks!
michael r.
I would like ssa to check my monthly benefit amount as I have been working full time since I started to receive ssa retirement but have seen no change in my monthly check for last 2 years. I assumed my monthly check would increase if I kept working while receiving ssa retirement benefits
Ray F.
Hello Michael. Each year, we review the records for all working Social Security recipients to see if additional earnings may increase their monthly benefits.
When you apply for retirement benefits, we base your benefit payment on your highest 35 years of earnings and your age when you start receiving benefits. If your earnings for the prior year are higher than one of the years we used to compute your retirement benefit, we will recalculate your benefit amount.
If an increase is due, a new monthly benefit amount is established on your record automatically. See “Getting Benefits While Working” for more information. Thanks!
Judith B.
My husband, who is still working, applied for suspended benefits (apply & suspend I believe is what it’s called) in 2016. I started getting my ss benefits also in 2016. Earlier this year he applied for spousal benefits on me & was denied, saying he should have cancelled his apply & suspend within a year. Why were we never told this & why does it make a difference? Is there anything else we can do to get spousal benefits? Thank you.
Ray F.
Hello Judith, please visit our “Voluntary Suspension Of Retirement Benefits and Deemed Filing For Retirement & Spouse’s Benefits” Frequently Asked Questions web pages for information on these important topics. Thanks!
Sallie D.
Thank you very much for this update.
Ray F.
Thanks for your feedback, Sallie! We value your opinion of us and look forward to many more years of serving you in the future.
Marie H.
Hi
Am I reading this right? I retired at 62 and worked for 2007== IN 2010 I went back full time and worked another 6 years. Did not stop my SS wish I had
I went over limit and had to pay everything back
I officially retired at 69 years old.2016. Is there any way to increase my SS it is an embarrassment as to the amount I receive
Thank you
Marie Horvath Knowlton
hurdmaria100@yahoo.com
Ray F.
Hello Marie. As long as you continue to work, even if you are receiving benefits, you will continue to pay Social Security taxes on your earnings. However, we will check your record every year to see whether the additional earnings you had will increase your monthly benefit. If there is an increase, we will send you a letter telling you of your new benefit amount.
Please visit “Getting Benefits While Working” for complete information on this topic. Thanks!