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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Wendy J.
I am turning 65 and would like to know if my social security can be raised, I do receive her but not much a month. Which means when I started receiving social security answers especially I was about 55 and retired, I am now at retirement age which is 65 and want to know what my best bet would be. thanks
Paul j.
Why does Medicare stay the same if they would give me the withholdings i could pay my deductible with it
Maurine H.
I retired about 10 years ago. They told me they figure it from the last 5 years of earning. This article says they figure it from the last 35 years the highest earnings. the last 5 years I had moved and had to take a less salary so now I have lower SS than I had expected. How can I find out what I should be getting?
Jeffrey K.
Than I you for the update !
Thomas r.
When i signed up on line i dont believe i was asked if i was a veteran i see now i should have recied more $ becuz of that if you need me to fax a dd214 i will i will be waiting for your responce?
V.V.
Hello Thomas, thank you for your question. Since 1957, if you had military service earnings for active duty (including active duty for training), you paid Social Security taxes on those earnings. Since 1988, inactive duty service in the Armed Forces reserves (such as weekend drills) has also been covered by Social Security.
Under certain circumstances, special extra earnings for periods of active duty from 1957 through 2001 can also be credited to your Social Security earnings record for benefit purposes.
•If you were in the active military service from 1957 through 1967, special extra earnings are added to your earnings record when you apply for Social Security benefits.
•If your active duty was after 1967, the extra earnings are already on your record.
There are no special extra earnings credits for military service after 2001.
These special earnings credits are added to your earnings record automatically when you apply for Social Security benefits.
Please read our publication: Military Service and Social Security https://www.ssa.gov/pubs/EN-05-10017.pdf for more information. Thanks!
Patricia P.
For the two increases other than a COLA, do I have to keep track and notify the Social Security Administration or does the SSA keep track of changes in employment and income and notify me?
Paul A.
Dear ssi. Am not sure what to do with this cola notice do I need to call or text your office ? Am not very Computer literate am not sure what to do can you please help.
Joanne F.
I haven’t received information on just the amount of Social Security I am to receive when there is increases after retirement. Please inform me when and just how much increases there are yearly or
K.O.
Hi Joanne. Your COLA notice will be available online in the Message Center of your my Social Security account in December 2018. Although you will still receive this COLA notice by mail this year, in the future, you will have a choice of online or paper notification.
For more on Social Security Cost-of-Living adjustment for 2019, click HERE. Thanks!
diane e.
this is very helpful. Thank you. I scrolled through my email–but have no record of receiving this type of information previously. Did this service just begin? If this email educational service has been in place, how long has it been in place? Is there a way that I can retrieve the emails that are like this that date back to prior than September 6, 2018?
Please advise.
Mark a.
My wife’s and my social security benefits were drastically reduced a couple of years ago do to one time income increase from selling our house. We mostly paid off loans and mortgage with the proceeds. Why hasn’t our monthly benefits gone back to the original amounts we always received prior to the sell? What do we need to do about this? Thanks