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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Jim Borland, Acting Deputy Commissioner for Communications
Jim Borland, Acting Deputy Commissioner for Communications
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Confused
I retired in 2016 after working 43 years and began drawing my SS benefits at age 62. In August-2018 my brother in law turned 62 and began receiving his SS benefits (with 32 years of service with a lower paying job) and he’s drawing over $500 a month more than I currently do??? Can I ask for a review of my monthly benefits to see if I’m being short changed?
Mark T.
You guys do a great Job !!
Thanks for everything.
MARTIN G.
HOW CAN I RECEIVE AN INCREASE IN MY BENEFITS
R.F.
Hello Martin. Generally, if you continue to work while receiving retirement benefits, your monthly benefit amount could increase. Each year, we review the records for all working Social Security recipients to see if additional earnings may increase monthly benefits.
The other way your monthly benefit amount could increase is based on the Cost-of-Living Adjustment (COLA), which is announced each year in October. We hope this information helps!
JIMMY C.
how is the cost of living figured, what elements go in to figuring the cost of living. this is a question no one seems to know the answer to.
R.F.
Hello Jimmy. Social Security and Supplemental Security Income (SSI) benefits for more than 67 million Americans will increase 2.8 percent in 2019. This is the annual cost-of-living adjustment (COLA). By law, federal benefits increase when the cost of living rises, as measured by the Department of Labor’s Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). For more details about the COLA, visit http://www.ssa.gov/cola. Thanks!
Julia G.
I am 66. But don’t want my SSnpayments to begin until January 2019. Can I complete the application now and deferr payments to begin Jan 2019?
R.F.
Hello Julia, our system is set up to take applications four months in advance. You can apply for your benefits online at any time now. Remember that benefits are paid the month after they are due. So, for instance, if you want your benefits to begin with the month of January, you will receive your first benefit payment in February.
Please visit our Social Security Retirement Planner for more information.
Congratulations and Happy Retirement!
Nasser H.
can i please have an appointment with Social Security office in San Leandro, Ca
Thank you,
R.F.
Hello Nasser. We currently do not have an online appointment scheduler. However, many services, including applying for retirement, disability or Medicare benefits, are conveniently available online.
If you do not want to apply for benefits online, or you need to speak to us for any other reason, you can schedule an appointment by calling us at 1-800-772-1213 (TTY 1-800-325-0778) between 7 a.m. to 7 p.m., Monday through Friday. Or you can contact your local Social Security office directly. Thanks!
Susie L.
Great information! I appreciate the news alerts.
Richard S.
Can you work after 70 and still get your social security checks?
R.F.
Hello Richard. At 70, you’ve reached your full retirement age. If you work and are full retirement age or older, the amount you make at work will not affect your Social Security benefits, no matter how much you earn. Please read our publication “How Work Affects Your Benefits” for more information. Thanks!
Betty M.
I haven’t used my Medicare Dr. or Hosp. care since 9/2015. Is there a possibility that I could get a refund of the monthly amt. that is deducted from my small S.Sec. check ea. month since Sept., 2015?
V.V.
Hi Betty, thank you for your question. The Medicare premiums are not refundable based on usage. However, you may be eligible to receive assistance from the state where you live. Medicare enrollees who have limited income and resources may get help paying for their premiums and out-of-pocket medical expenses through the Medicare Savings Programs (MSP). Please call the Centers for Medicare & Medicaid Services at 1-800-633-4227 for more information. We hope this information is helpful.
Suzi C.
My husband is 66 years old and continues to work full time as a teacher. He hopes to continue teaching, but wonders if he should begin claiming his social security payments and continue teaching. What’s the thinking on that?
V.V.
Hi Suzi. We are often asked, “What’s the best age to start receiving retirement benefits?” The answer is that there’s not a single “best age” for everyone and, ultimately, it’s your choice. The most important thing is to make an informed decision. Base your decision about when to apply for benefits on your individual and family circumstances. The factsheet on “When to Start Receiving Retirement Benefits” can provide a better understanding of how Social
Security fits into your retirement decision.