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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Terry L.
I have a new address: XX Academy St, McSherrystown. Could you please make this change.
Thank you,
Terry Lynne Furr
Ray F.
Hello Terry. Unfortunately, and because of security reasons we do not have access to personal information in this blog and cannot update your records.
If you get Social Security benefits or are enrolled in Medicare, you can change your address online by creating your personal my Social Security account.
Just a reminder – Please be cautious about posting personal information on social media channels. Thanks!
Mark A.
Great stuff.!!
Ray F.
We appreciate your thoughts, Mark. Thanks for your comment!
Concetta P.
It is problematic month to month when I have to wait an additional week to receive my check & pay my bills for the month. Unlike older Americans who always receive their check on a specific day (3rd) of the month. I do believe there is a loss of funds for waiting the extra week per quarter for a sum of one check per year. I would prefer my payment on the same day of the month. After all, all my working life paying SS was done each & every paycheck scheduled weekly or biweekly. No waiting there!
Vonda V.
Hi Concetta, thank you for your question. The Social Security benefit payment schedule is not based on the number of weeks in a month. Social Security benefits are paid monthly and the payment date is based on your day of birth. You may find our Schedule of Social Security Benefit Payments calendars helpful.
Scott M.
Thank you for this information. I was totally unaware that you had so many policies in place to help increase the social security income for those persons (like myself) that needed and began receiving social security income at the earliest possible time legally despite knowing I was “leaving money on the table”. God bless your new policies and educating seniors like myself that there is still hope for increased benefits to help out
Angelina B.
I did not get my new social security card. My husband received his months ago. Please advise if I need to make a trip to the local social security office. This is hard for me because I cannot leave my husband alone. Thank you. Angelina Bowen DOB 4/23/51
Vonda V.
Hi Angelina. Thank you for your question. If you’re referring to the new Medicare cards, Medicare will automatically mail your new card to the address on file with Social Security. As long as your address is up to date, there’s nothing you need to do. If you need to update your address , you can use your personal my Social Security account.
Mailing millions of Medicare cards takes some time, so you might get your card at a different time than your husband.
James p.
Why have I not received an ss increase in six years?
inflation has increased every year. My rent has increased every year. My Med Care co-pay increases every year. Every item in the food markets has increased. Gasoline no standards, just high priced. Others, yes.
What I read vs what I receive seems like double standards to please not perform.
Vonda V.
Hi James, thank you for your question. The purpose of the COLA is to ensure that the purchasing power of Social Security and Supplemental Security Income (SSI) benefits is not eroded by inflation. 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). See the Cost-of-Living Adjustment (COLA) Information page for details and its history.
For some beneficiaries, their Social Security increase may be partially or completely offset by increases in Medicare premiums. For information about Medicare premiums, visit http://www.medicare.gov.
Mary W.
It was not made clear in your article on COLA, what I need to do to see how, to get my pay increase for this past year, 2018. As well as this coming year 2019.
Vonda V.
Hello Mary. Recently, we announced a 2.8 percent cost-of-living adjustment (COLA) in 2019. More than 67 million Americans who receive monthly benefits will automatically receive the increase.
The COLA will take effect with Supplemental Security Income (SSI) payments paid on December 31, 2018, and Social Security payments paid in January 2019. You can find useful information on the 2019 Medicare changes, when announced, at http://www.medicare.gov.
For more details about the new COLA, visit http://www.ssa.gov/cola. Thanks!
Kenneth J.
I am now age 84. I have continued to work after age 65. Am I entitled to an increase in SS because of the additional work?
Ray F.
Thank you for your question, Kenneth. The amount of benefits you receive is established at the time you applied for retirement benefits. It is based on the amount of your average lifetime earnings and your age at the time you applied. Generally, we use the highest years of earnings to calculate your monthly benefit amount. However, 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.
Linda f.
I have heard that being active in the military from 1966 to 1969 that it would count toward their SSI. If this is true what does my husband have to do.
Ray F.
Hello Linda. Earnings for active duty military service or active duty training have been covered under Social Security since 1957. Under certain circumstances, special extra earnings for your military service from 1957 through 2001 can be credited to your record for Social Security purposes. Please read our publication: Military Service and Social Security for more information. Thanks!
wilfrido H.
Would it be possible for you to let me know if I can receive an adjustment now that I have reached full retirement age (I took early retirement at 62, am now 69). I also do not know if I received reduced benefits and exceeded the earnings limit.
Thank you
Ray F.
Hello Wilfrido. If a person begins to receive benefits at age 62 or prior to their full retirement age, their benefits are reduced. The reduction factors are permanently applied to all of the benefits the person may qualify for.
Each year we review the records for all working Social Security recipients. 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. See “Getting Benefits While Working” for more information on this topic. Thanks!