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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Judith W.
How do you know that I have retired and that I no longer have my work income? What is your source of income information to see if I should be getting a post retirement raise in my monthly SS.
Ann T.
I have been working continually after retiring and drawing SS at age 62. I am now 81 and still working. Why do I still have to have SS and Medicare deducted from my salaries. How can my SS increase other than when everyone gets a
raise.
Ray F.
Thank you for your questions, Ann. Under current law, everyone working in covered employment or self-employment regardless of age or eligibility for benefits must pay Social Security and Medicare taxes.
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). Thanks!
Beverley H.
If we are retired and are working 40 hours each month, are we eligible to receive an increase?
Eddie T.
My income increased significantly after taking SS at 66 and 1/2 then last year (2017) dropped but medicare stayed at highest level, have sent in income tax for that year and this year income will be like 2017. When will I hear and what about an increase for those high years 2014 through 2016?
Linda K.
I filed for Social Security Benefits at age 62 and took the lesser amount. Am I eligible for an increase in payments? I am now 73.
philip b.
oops .. I will be 72 nov. 20 2018 … see previous note
philip b.
I took early retirement at age 62 in 2008 .. I will be turning 72 nov 20, 2008 … do I qualify for an adjustment or increase due to full retirement age… thanks
Janst k.
How do I request a letter of proof of SS I’m trying to buy a house
Ray F.
Hello Janst. If you need proof you get Social Security benefits, Supplemental Security (SSI) Income or Medicare, you can request a benefit verification letter online by using your personal my Social Security account. Thanks!
Carol P.
Health care is taken.
Why?
I don’t need it.
When I get sick . I will die or get better.
Drug store drugs will kill.
I don’t want them.
I don’t need them.
Stop pushing drugs on me.
Thank you for the platform
Ray F.
The Medicare program, is managed by the Centers for Medicare & Medicaid Services (CMS). For general information, please visit http://www.Medicare.gov. Thanks!
Danny R.
I checked my Social Security account and there is no place to ask about the COLA any where on the sight, even though I received an e-mail to check.
Ray F.
Hello Danny, for more details about the new COLA, visit http://www.ssa.gov/cola. Thanks!