Retirement

Three Common Ways Your Social Security Payment Can Grow After Retirement

June 21, 2018 • By

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Last Updated: June 21, 2018

woman planting flowers 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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About the Author

Jim Borland, Acting Deputy Commissioner for Communications

Jim Borland, Acting Deputy Commissioner for Communications

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Comments

  1. Gene O.

    what is the formula used to calculate my adjusted social security if I continue to work after I started receiving my payments.

  2. Kathleen W.

    At retirement I was 100% disabled. How can I check if I am getting the correct payout?

  3. Donald

    Several years after starting social security retirement I settled with IRS paying them 37k in back self employment taxes and interest. I have often wondered why that payment did not cause an increase in my monthly income from social security.

  4. Ray G.

    How can i get list of people who i worked for during my lifetime that paid me social security ?

  5. Mildred c.

    Thank you. Will look forward for increase. My social security keeps me going. I am so glad I worked the extra years to receive a decent check.

  6. ALBERT J.

    I cancelled my insurance 6 months ago because I’m living outside the USA and my insurance is NOT covered. BUT SS is still deducting my payments. I call every month and the same answer. I have npw paid in over 5000.00 us dollars for no coverage.

  7. Teresa C.

    How can I increase my monthly payment of I receive SS Disability?

  8. Barbara M.

    I just turned 66 in October my disability was changed to retirement but I did not receive an increase. Will i receive an increase?

  9. Ester J.

    Does this apply to early retirement

  10. Theresa B.

    What does COLA consider when calculating our increase? It seems like food, energy and gas are not included in this formula and those are the things that affect us the most. It is very distressing that more and more companies are moving to a $15 per hour minimum wage and it is hurting all of who are on limited Social Security payments. Unfortunately, I still have a house payment that eats up half of my check. Poor planning on my part but everything is going up expediently except my income. Is there any way to increase more than COLA?

    • R.F.

      Hello Theresa. By law, the Social Security Administration uses the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) determined by the Bureau of Labor Statistics (BLS) in the Department of Labor to calculate Cost-of-living adjustments (COLAs).
      For more details about the new COLA, visit http://www.ssa.gov/cola. Thanks!

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