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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Barbara M.
I was approved for SSI based on having had a major stroke and being bipolar in 2000. I had originally made my application in Texas in approximately 1996 and was turned down. Then I appealed in Pennsylvania and was again turned down. Finally Social Security had me see a psychiatrist and I was immediately approved.
Was I actually paid for all that time (over four years) between my initial application and the granting of SSI?
V.V.
Thank you for contacting us, Barbara. Unfortunately, and because of security reasons, we do not have access to personal records in this blog and cannot assist you.
To inquire about potential back pay, call our toll-free number at 1-800-772-1213. Representatives are available Monday through Friday, between 7 a.m. and 7 p.m.
Beverly H.
I stopped working after I had two children and started working again when they got older. My question is do women still get some kind of credit for Social Security for staying home to care for their children? I was told that they do.
V.V.
Hi Beverly, thank you for your questions. We figure everyone’s retirement benefit the same way. It’s based on a percentage of your average monthly wage using a 35-year base of earnings. If you don’t have 35 years of earnings, we must substitute “zero” years to reach the 35-year base.
Regarding your question on how do you know if you’re receiving the right benefit amount, you can always call our national toll free number at 1-800-772-1213. Representatives are available Monday through Friday, between 7 a.m. and 7 p.m.
Generally, if you continue to work while receiving retirement benefits, your monthly benefit amount may increase. As long as you continue to work and receive benefits, we will automatically check your record every year to see whether the additional earnings will increase your monthly benefit. If there is an increase, we will send you a letter telling you of your new benefit amount.
Beverly H.
I applied for social security before I reached retirement age (don’t remember at what age I was) and continued to work and finally retired at age 69. How do I check to see if I am receiving the right amount?
Michael K.
I retired at age 62. I am nowv69. Can get an increase in my benefits?
K.O.
Hello Michael. Great question! If you started to receive your retirement benefits at age 62 or at anytime prior to your full retirement age, your benefits are then reduced. This reduction is due to early retirement and is permanently applied to all benefits you may qualify for. See information on Early or Late Retirement. We hope this helps. Thanks.
Jonas E.
My wife and I had both of our Social Security benefits (monthly payments) reduced for 2018. This was apparently due to a one-time timber harvest which occurred in 2017. Will our monthly benefits be restored for the 2019 year since we had the one time increase in yearly income?
K.O.
Hello Jonas & Jennie. For security reasons, we do not maintain access to personal records via this blog and cannot assist with your request. We suggest contacting our toll-free number at: 1-800-772-1213. Representatives are available Monday through Friday, between 7 a.m. and 7 p.m or visit your local Social Security office for more information. Hope this helps. Thanks.
Fleming g.
How do I determine if I am eligible for additional compensation. I have been retired since November 2003.?
K.O.
Thank you for contacting us, Fleming. For security reasons, we do not have access to personal records in this blog and cannot assist you with your request. Please call our toll-free number at 1-800-772-1213 where representatives are available Monday through Friday, between 7 a.m. and 7 p.m. or visit your local Social Security office for more information. Thanks.
Larry G.
Your statements about increased monthly payments are not true. I am 72 years old with no “earned income” and you have reduced my monthly benefits to the point that I can no longer make my house payments and the bank will not refinance due to my age. Your story is for immigrants not American citizens.
renard w.
I started collecting be for full retirement age and I continued to work and I had a stroke at the age of 67. Am I eligible to apply for handicap SS benefits?
David L.
I started receiving ss benefits at my retirement age . But then I worked for another five years. Does social security ever re-calculate benefits so I can receive more benifits?
Louise D.
If I delayed taking my SS for 4 years and took my deceased husbands for those years is it still possible I might see an increase? How can I determine this?