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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Howard
If I do not work after retirement, will my SS payments be increased only by COLA? Or are the Index Factors used to calculate my initial payments taken into account? I ask because the Index Factors are used to calculate my payments, and they generally all increase each year. Once I start taking SS, are my payments re-calculated each year with increased Index Factors, in addition to COLA? Or are the Index Factors used only for initial payments?
V.V.
Hi Howard, thank you for your question. Your earnings are indexed up to the year you turn 60, after that we use your actual earnings. That is why we provide a new “Your Retirement Benefit: How It’s Figured” Factsheet every year because they are based on one’s year of birth. For example, the factsheet for those born in 1957 shows an index factor of 1.0 in 2017, the year they turn 60.
Howard
Thank you for the information, and the link. I didn’t realize that the index factor for each year remains unchanged for each person. I saw the factors from two different spreadsheets and thought they changed over time.
Howard
Thank you for the information. I didn’t realize that the index factor doesn’t change for any given year for each person. I saw two different spreadsheets for two different people and thought the index factor changes over time.
Kevin B.
I am at full retirement age and drawing. I continue to work and my earnings in 2018 were greater that many of my 35 years. My question is when does the recalculation of my SS happen from my prior year higher income? Is it once a year or when the wages from the prior year are posted?
V.V.
Hi Kevin, thank you for 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. 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!
A.C.
Hi, Kevin. Each year, we review the records for all working Social Security recipients to see if additional earnings may increase monthly benefits. To learn more read our publication, How Work Affects Your Benefits. For specific questions regarding your earnings, you can call us at 1-800-772-1213, Monday through Friday, between 7:00 a.m. and 7:00 p.m., for assistance. Generally, you will have a shorter wait if you call later in the day. You can also contact your local Social Security office. We hope this helps.
Joel T.
At what time do the 35 year income reviews conducted? I filed my 2018 taxes about 1 month ago.
Norman R.
I started receiving benefits at age 63. I am now 69 and have continued to work. I have earned each year since my retirement more than I have ever earned, yet the only raise I have received is COLA. Should I contact the agency?
A.C.
Hi, Norman. Each year, we review the records for all working Social Security recipients to see if additional earnings may increase monthly benefits. To learn more read our publication “How Work Affects Your Benefits”. If you have additional specific questions, you can call us at 1-800-772-1213, Monday through Friday, between 7:00 a.m. and 7:00 p.m., for assistance. Generally, you will have a shorter wait if you call later in the day. You can also contact your local Social Security office. We hope this helps.
Lonna s.
I have read I can collect my social security along with my deceased husbands I am 77 We were divorced but I have never remarried) And we were married 15 years
V.V.
Hi Lonna. If you are the divorced spouse of a worker who died and you are not married, or you remarried after age 60 (age 50 if disabled), you could get benefits just the same as a widow or widower.
For more information, please visit our Surviving Divorced Spouse webpage.
To inquire about potential benefits on your ex-spouse’s record, you will need to contact your local Social Security office or call our toll free number at 1-800-772-1213. Representatives are available to help you Monday through Friday between 7 a.m. and 7 p.m.
John S.
I was forced into retirement in July 2017 at the age of 65 and my SSA check I started receiving was $1951. But for 2019 my SSA was recalculated based on 2017 that included half a year of employment and because I exceeded my income limit be a few thousand dollars, it was decreased to $1841. I just turned 66 in March and my only income is my SSA and what I take out of my IRAs of which most goes to paying taxes. Is it possible to get my SSA recalculated due to my income now is limited and not working?
A.C.
Hi, John. Unfortunately, but for your security, we do not have access to private information in this venue. We ask that members in our Blog community work with our offices with specific questions. You can call us at 1-800-772-1213, Monday through Friday, between 7:00 a.m. and 7:00 p.m. You can also contact or visit your local Social Security office for assistance. We hope this helps.
brooks f.
I have not received my new card. What should I do?
A.C.
Hi, Brooks. For information about the new Medicare cards, visit here. If you applied for a Social Security card and have not received it, you will need to contact the office where you applied to check the status. You’ll need to bring all of the original documents that you provided to us. We cannot help you with this over the telephone or in this venue. Thanks!
elvira e.
Will return later
Teri A.
I cannot enter my online SS account any longer and unable to retrieve ID or password. Could you help me instead of using customer service phone line.
A.C.
Hi, Teri. For your security, we do not have access to private information in this venue. If you are unable to access your personal my Social Security account or encounter a problem with your account, you may:
•Call us at 1-800-772-1213 (TTY 1-800-325-0778), Monday through Friday from 7:00 a.m. to 7:00 p.m. At the voice prompt, say “helpdesk,” Generally, you will have a shorter wait if you call later in the day; or
•Contact your local Social Security office. We hope this helps.
Carol W.
O am retired, but getting benefit from my ex husband. Am I also qualified for more benefits?
V.V.
Hi Carol, thank you for your question. Typically, if you qualify for your own retirement benefits and for benefits as a divorced spouse, we always pay your own benefits first. If your benefits as a divorced spouse are higher than your own retirement benefits, you will get a combination of benefits equaling the higher spouse benefit.
leighann cook on January 26, 2019 at 6:59 am said: Edit
Me and my son’s father were together for eight years unmarried my son is 6 years old now 2 weeks ago my boyfriend his father passed away is my child eligible for any benefits?
Reply ↓
Vonda VanTil, Public Affairs SpecialistVonda VanTil, Public Affairs Specialist
on January 29, 2019 at 10:01 am said: Edit
We are very sorry for your loss, Leighann. The child may be eligible for survivor benefits if the child’s father earned enough Social Security credits through his work. Unmarried children who are under 18 (up to age 19 if attending elementary or secondary school full time) can be eligible to receive Social Security benefits when a parent dies.
To inquire about your benefits, you will have to contact your local office or call our toll-free number at 1-800-772-1213. Representatives are available Monday through Friday, between 7 a.m. and 7 p.m.