I receive social security now and still work. I have missed out on about $20000 because this was deducted because im working.How much will i receive extra monthly when i reach FRA?.

Hi,

How much your benefit rate might increase when you reach full retirement age (FRA) depends on your benefit rate and the number of months that your benefits are withheld prior to FRA as a result of your earnings.

When you file for benefits prior to FRA, your benefit rate is reduced based on the number of months prior to FRA that you claim benefits. If you don't end up being paid all of those benefits because you earn more than the Social Security earnings test exempt amount, Social Security removes the percentage reduction that was initially applied to your benefit rate for any months that you ended up not being paid.

For example, say Bill's FRA is 66 and he files for his benefits effective with the month he reaches age 63. Bill's primary insurance amount (PIA), which is the amount he'd receive if he started drawing at FRA, is $2000. However, since Bill is filing 3 years early his rate is reduced by 20% to $1600. But, if Bill earns more than the earnings limit and only ends up being paid for 18 months prior to FRA instead of 36 months, his benefit rate would be increased to $1800 effective with the month he reaches FRA. In other words, starting at FRA the percentage reduction for age applied to Bill's benefit rate would change from 20% to 10% because he only ended up receiving 18 months of benefits prior to FRA instead of 36 months.

Best, Jerry