Ask Larry

If I Keep Working After I Start Collecting Benefits Will My Benefit Rate Increase?

I started collecting my ss at 66 and continue to work full time. If while doing this my salary falls into one of my top 35 yrs. Of earnings will my amount of ss be able to increase on my next birthdays until i am 70 as long as i work and earn

Hi,

If you continue working and paying into Social Security, your Social Security retirement benefit rate can be recomputed annually regardless of your age. It doesn't matter whether of not you are currently drawing benefits. Social Security uses your calendar year earnings, and any recomputed benefit rates become effective with benefits due for January of the year following the year of the earnings. In other words, if you're due a benefit increase resulting from your 2020 earnings, your increase would be effective with your benefit payment for January 2021.

Social Security retirement benefits are based on an average of a person's highest 35 years of Social Security covered wage-indexed earnings, so additional years of earnings only increase a person's benefit rate if they're higher than one or more of the 35 years currently being used to calculate the person's benefit rate. Earnings recomputations are processed automatically by Social Security around September of each year, and any back pay due for people who are currently receiving benefits is paid immediately after the recomputation is processed.

Best, Jerry

Category: 
Posted: 
Sep 3 2020 - 10:24am
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