How Much Will My Benefit Rate Increase If I Keep Working?

Feb 16 2017 - 8:00am

I WAS BORN IN 1951 AND HAVE BEEN MARRIED FOR 30 YEARS TO A SPOUSE WHO IS CLAIM HIS SS, AND DID SO AT HIS FULL RETIREMENT AGE. I KNOW I CAN RESTRICT MY APPLICATION AT MY FRA TO MY 1/2 OF MY SPOUSES SS AND RECEIVE A 8% INCREASE ON MY SS AMOUNT UP TO AGE 70. HOWEVER I WILL BE WORKING TO AGE 67 AND THAT WILL INCREASE MY SS AMOUNT, PER SS, BY 10% FROM MY AGE 66 AMOUNT. IF I RESTRICT MY APPLICATION AT AGE 66, AND WORK UNTIL AGE 67, WILL I GET THE 10% INCREASE FROM MY WORKING AND THE 8% INCREASE FROM MY RETRICTION TO EQUAL A 18% INCREASE, AT AGE 67? OR WILL I JUST GET ONE OF THE INCREASES?

Hi,

You would get both increases, although I can't confirm how much if any that your benefit rate would increase as a result of your earnings. Your basic retirement rate is calculated based on your highest 35 years of wage-adjusted earnings (https://www.ssa.gov/pubs/EN-05-10070.pdf). So, the amount of the increase depends on how much you earn, and how much you earned in the lowest of the 35 years previously used to calculate your rate.

After your basic rate is recalculated to credit you with any higher earnings years, you would also receive delayed retirement credit (DRC) increases for any months that you defer taking your own retirement benefits past full retirement age until age 70. DRCs are credited at a rate of 8% per year, or 2/3rds of 1% per month.

Best, Jerry