I am 68 and only have 40 credits so I'm waiting until I'm 70 to collect retirement benefits. In your book you stated that if I keep working until after I'm age 70, every year my benefit amount will increase because my benefit will be recalculated annually based on my increased payments into social security. Can you tell me where it says that in the law. My friend just turned 70 and is in the same position as I am and SSA told him his benefit at age 70 was frozen and could not go up.

Hi. Social Security's policy for benefit recomputations is covered in section RS 00605.401 ff (https://secure.ssa.gov/apps10/poms.nsf/lnx/0300605401) of Social Security's operations manual (POMS). POMS is easier to understand, but if you want to know the actual section of the Social Security Act that authorizes benefit recomputations it is Section 215(f) (https://www.ssa.gov/OP_Home/ssact/title02/0215.htm).

I'm guessing that what the Social Security representative who spoke with your friend was trying to explain is that a person's benefit rate can't increase as a result of delayed retirement credits (DRC) after age 70. DRCs increase a person's Social Security retirement benefit rate by 2/3rds of 1% for each month that they defer taking benefits between their full retirement age (FRA) and age 70. DRC increases are completely unrelated to recomputations to include additional years of earnings.

Social Security retirement benefits can be recomputed to consider additional years of Social Security covered earnings no matter how old a person is when they produce the earnings. Since you apparently have fewer than 35 years of Social Security covered earnings, your benefit rate should increase at least somewhat after any year in which you earn more than about $500.

Our software (https://maximizemysocialsecurity.com/purchase) includes a benefit calculator that would allow you to calculate your benefit rate, including recomputations to include future years of earnings. So, you may want to strongly consider using the software to do your Social Security planning.

Best, Jerry