Will My Earnings After Full Retirement Age Be Used To Calculate My Benefit Rate?

Aug 10 2017 - 7:27am

I am still working, turning 70 in October, and not drawing social security. Since I took my current job at age 66, I received a good increase in my salary. There have been no changes or increases indicated on my annual social security projections from the SSA for the last four years; and I am wondering if my future social security payments will reflect these higher earnings or if they will only be based on my earnings record until I reached "full retirement age." I have not seen this question anywhere and I thank you for addressing my issue and concern.

Hi,

Your earnings after age 66 will be used in the calculation of your benefit rate, provided that they are among your highest 35 years of 'indexed' earnings. Even if you have good earnings in those years, though, they may have little or no impact on your benefit rate. This is because the indexing process adjusts your earnings in the years prior to the year you turned age 62 to credit you with a higher amount than you actually earned in those years.

For more information on wage indexing, refer to Social Security's website: https://www.ssa.gov/OACT/ProgData/retirebenefit1.html.

Best, Jerry