Will The $40,000 I Earned Last Year Increase My Benefit Rate?

Sep 10 2017 - 7:32am

I AM 69 AND WORKING. I COLLECT SOCIAL SECURITY SINCE THREE YEARS. IN 2016 I MADE $40000.OO WAGES. WILL IT INCREASE MY BENEFITS?

Hi,

Maybe, and maybe not. Your Social Security retirement benefit rate is based on your highest 35 years of wage-indexed earnings (https://www.ssa.gov/pubs/EN-05-10070.pdf). If the $40K you earned last year is higher than one of your previous highest 35 years of indexed earnings, then your rate should go up. Social Security should automatically increase your rate if an adjustment is due, but you can request a manual recalculation by contacting Social Security and submitting proof of your 2016 earnings (e.g. W-2 form).

Best, Jerry