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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Richard O.
Hi, I retired at full retirement age of 65. I am now 79 & have worked part time up until last June of 2018. Am i entitled to any raise in my Social Security??? thanks very much, Richard Ochoa (Coeur d’Alene, Idaho)
Ann C.
Hi, Richard. Thanks for your question. Each year we review the records for all Social Security recipients who work and will refigure your benefit if applicable. Learn more about how work affects your benefits here. We hope this helps.
Carol L.
I read an article about seniors born after 1943, and how our social security check could increase each month. I am interested in how to get information about this and what steps to take.
Carl R.
Do I need a new red, white & blue medicare.why do I need a new one. When I got medicare complete they said put it away don’t need it anymore. Letter said all you need is the Medicare Complete card. AARP
Billy R.
I am continuing to work after 65 years( 78 now). I started receiving my Social Security check at age
63 reduced amount. Should my SS check increase. Working 15 years after receiving my
first SS check.
Ann C.
Thanks for your question, Billy. Each year, we review the records for all working Social Security recipients to see if additional earnings may increase their monthly benefits. 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. If an increase is due, a new monthly benefit amount is established on your record automatically. If you continue to work, remember that starting with the month you reach full retirement age, there is no limit on how much you can earn and still receive your Social Security benefits. For more information, check out our publication, How Work Affects Your Benefits. We hope this information helps!
Rowena
To clarify, the profit I will receive from the sale of my home will not fall into the Capital Gains Tax because of the $250K exemption credit I get. But I was wondering how this sale could affect my Social Security taxes or amount that I’d get later given that I will not be applying for it until I reach 70yrs old. Will my profit be seen as “income” subject to social security taxes? Will it raise my work record amount and help with the zero’s?
Rowena
I am 65yrs old and decided that I will not be drawing SS until 70 because I still work and have 23 years of no income on my record due to raising 4 kids and home schooling them all. That said, I have a house (primary residence) that I’d like to sell next year. Will the huge profit that I make from the home sale be counted (taxed as income) and applied towards my social security?
Ann C.
Hi, Rowena. Generally, you will need to have 40 credits, or 10 years of work paying Social Security taxes, to qualify for any type of Social Security benefit. When you work and pay Social Security taxes, you earn up to a maximum of four “credits” per year. The sale of your home does not qualify as earnings for Social Security benefits. For a complete explanation of credits are earned, visit here. We hope this helps.
Claude P.
my part b cost has increased to $189/m, why so high
Ann C.
Hi, Claude. 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., 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.
CyrtE.Burroughs
Can My wife draw some of my social security. She draws 730.00 a month and I draw 1250 a month. She will be 65 in march of 2020 and I will be 65 in June. Since hers is a lot less than mine I was wondering if she could get more with my benefits would still stay the same.
Monica
I was wondering if you retire from your job BEFORE the full benefit age of 66 1/2 for social security, but with a pension coming from your job you just retired from, can you put off receiving SS until you reach that full benefit age or even later and receive that amount that they say you will get at that age even if you are not working anymore? I am going on 41 yrs. with the same company.
Thank You in Advance!
Ann C.
Hi, Monica. Thanks for your question. Please bear in mind that the decision on when to apply for benefits is a personal one. We can only provide you with the information to help you make the best choice according to your own situation. Eligible individuals can start receiving retirement benefits as early as age 62, but if you decide to start receiving benefits after your full retirement age, it may result in larger benefits. You earn delayed retirement credits automatically when and if you delay getting your benefits up until age 70. The benefit increase no longer applies when you reach age 70, even if you continue to delay taking benefits. Also, keep in mind that if you work and are full retirement age or older, the amount you make at work will not affect your Social Security benefits, no matter how much you earn.
To help you plan, you can use our online calculators. Also, you can create a personal my Social Security account to verify your earnings, and get a copy of your Social Security Statement. Our system is set up to take applications four months in advance, and when you’re ready, you can apply for your benefits online. If you need further assistance call our toll-free number, 1-800-772-1213 (TTY 1-800-325-0778) and ask to speak with one of our representatives, who are available Monday through Friday between 7:00 a.m. and 7:00 p.m. We hope this information helps!
patriicia J.
I would like to have a review of my social security benefits and the pay out I have been receiving. How do I request that?Who do I ask to speak to. I am 82 and would like some help with this.
Patricia James
Vonda V.
Hi Patricia, thank you for using our blog. There are various ways that you can connect with us to inquire about your benefits. We have representatives available at our toll-free number, 1-800-772-1213, Monday through Friday, between 7:00 a.m. and 7:00 p.m. We also have local field offices open to the public on Mondays, Tuesdays, Thursdays and Fridays from 9:00 a.m. until 4:00 p.m. and from 9:00 a.m. until noon on Wednesdays.