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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Zahrie
IF I DESIDE TO STOP WORKING AFTER FULL AGE 70 DO I NEED TO VISIT SSI OFFICE TO APPLY FOR FULL BENEFITS RITEREMENT? My full age 70 will bee January 2019 Thank you
V.V.
Hi Zahrie. Social Security retirement benefits are increased by a certain percentage (depending on your date of birth) if you delay your retirement beyond your full retirement age. However, the benefit increase no longer applies when you reach age 70, even if you continue to delay taking benefits.
Keep in mind, 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 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.
You can apply four months before you want your benefits to start. When you’re ready to apply for retirement benefits, use our online retirement application, the quickest, easiest, and most convenient way to apply. You can also call 1-800-772-1213 (TTY 1-800-325-0778), Monday through Friday from 7 a.m. and 7 p.m. to make an appointment.
Zahrie
IF I DESIDE TO STOP WORKING AFTER FULL AGE 70 DO I NEED TO VISIT SSI OFFICE TO APPLY FOR FULL BENEFITS RITEREMENT? Thank you
karen k.
What a farce….. our SS payment have not increased in years but government employees give themselves big fat raises…..
Dennis C.
Why dosen’t Medicare offer a supplemental insurance coverage. I pay twice the amount for my supplemental coverage than I do for Medicare. So offer 100% coverage for twice the cost of of current Medicare.
Why do we always have to enrich insurance companies on the backs of those who can least afford it?
V.V.
Hi Dennis, thank you for your question. You may want to check out the Medicare website which has information on different types of Medicare health plans.
Edward J.
Info on working part-time after 65y/o
R.F.
Hi Edward, please visit our web page: “Getting Benefits While Working“. Thanks!
Steve W.
My wife retired at age 63, we are both age 68 now and I have been retired for about three years. My benefit is over twice her benefit – can she receive benefits based upon spousal benefit- we have been married over 30 years
Steve
R.F.
Hello Steve. Your wife could be entitled to receive up to one-half the amount of your full retirement benefit -only- if she applies for benefits at her full retirement age.
Keep in mind, 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.
See Retirement Planner: Benefits For Your Spouse for more information.
Generally, during the initial interview when applying for Social Security benefits, we typically explore other possible eligibility that could yield the claimant with a higher benefit amount. To find out if she is eligible for a higher benefit amount, she will need to speak to one of our representatives. She can call us at 1-800-772-1213 between 7 a.m. and 7 p.m. Monday through Friday or contact her local Social security office. Thanks!
Matina G.
I received my ss benefits at 62 and it is a very small amount can I collect from my husband’s benefits while
he is alive?
Matina Glaropoulos
g.glaropoulos1@verizon.net
Thank you
Charles M.
Is it necessary for me to contact SS to check on my earning adjustment? I’ve worked for 4 years after I started receiving SS.
R.F.
Thank you for your question, Charles. You can work while you receive Social Security retirement benefits. When you do, it could mean a higher benefit for you in the future. 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 complete information.
John G.
I have been working 9 years after beginning to receive my SS check. My gross earnings have been over 90 k for the last 4 years but to my knowledge no increase in monthly check ( direct deposit). Please look into this.
Thank you
V.V.
Hi John, thank you for using our blog to ask your question. 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 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.
Keep in mind that your Social Security retirement benefit is calculated using your 35 highest indexed years. Indexing is a way of giving your wages a higher value. It’s how we ensure that your future benefits reflect the general rise in the standard of living that occurred during your working lifetime. However, once you attain age 60, your wages are no longer indexed into a higher value. What you make is what is used. So, your recent earnings are probably not being indexed which means they may not be part of your 35 highest years.
You can call our toll free number at 1-800-772-1213 for further assistance. Representatives are available Monday through Friday, between 7 a.m. and 7 p.m. Thanks!
Anne E.
I noticed in your report that the highest salary in 35 years is used for retirement. I believe my last salary was used for my social security retirement which was 18 dollars/hr. I made 25 dollars/hr at my previous employment as a nurse at Ocean View nursing home here in florida. how can I correct this??
V.V.
Hi Anne, thank you for the question. A Social Security retirement benefit is calculated by using your highest 35 years of earnings. If you do not have 35 years of earnings, we will use all of the earnings on your record and factor in an annual total of $0.00 earnings for each of the remaining years.
If you need to correct your earnings record, see our Frequently Asked Questions web page for details.