I had to quit working the end of 2021 (although not due to official disability) and need to apply for Social Security benefits in 2022. I will be applying 2.5 years before full retirement age. In order to make sure SS will know and will count my work earnings/contributions from 2021 (a higher-earning year) in figuring my benefits, what month should I apply? I have received conflicting information from SS. (I also have heard that once you start receiving SS benefits, especially before reaching full retirement age, nothing you do after than can increase your benefits, so I don't want to apply before making sure SS will count my 2021 earnings.) Thank you!!

Hi. First off, I'll address what you heard about not being able to increase your benefit rate once you start drawing benefits. That is a myth. Benefit rates can be increased after a person starts drawing benefits in a number of ways.

For example, Social Security retirement benefits are based on an average of a person's highest 35 years of Social Security covered wage-indexed earnings, and a person can continue to increase their benefit rate indefinitely by working and replacing one of those 35 years with a higher earnings year. Another way you can increase your Social Security retirement benefit rate is by suspending your benefits between full retirement age (FRA) and age 70 in order to earn delayed retirement credits (DRC).

Back to your question, though, Social Security will use your 2021 earnings to calculate your initial benefit rate if you provide them with proof of your 2021 earnings (e.g. W-2 form for wages, or tax return Schedule SE for self-employment). Even if you file before proof of your 2021 earnings is available, though, Social Security will automatically raise your benefit rate after they receive proof of those earnings assuming that your 2021 earnings are high enough to increase your benefit rate. And, they will pay you any back pay that you have coming if they started out paying you a lower benefit rate than you were due.

By the way, before filing for benefits you may want to strongly consider using our software (https://maximizemysocialsecurity.com/purchase) to fully analyze all of your options so that you can determine your best strategy for maximizing your benefits.

Best, Jerry