I just started receiving early SS benefits this year 2020 in June at age 63. I am continuing to work, I also have 12 years of zero income years showing on my SS earnings record. As I continue to work, when would these new earnings be added to and increase my SS monthly benefit?
Thanks
Steve

Hi Steve,

Social Security retirement benefits are based on an average of a person's highest 35 years of Social Security covered wage-indexed earnings, so additional years of earnings only increase a person's benefit rate if they're higher than one or more of the 35 years currently being used to calculate the person's benefit rate. If you have fewer than 35 years of Social Security covered earnings, then zero-earnings years are included in the average earnings amount on which your benefit rate is based. In that case, replacing those zero years with new years in which you had Social Security covered earnings will certainly increase your benefit rate at least to some degree.

Social Security automatically recalculates a person's benefit rate to consider additional years of earnings. Those automated recalculations are generally done in the fall of each year, and any increases due are retroactive to the person's benefit rate for January of that year. For example, if your 2020 earnings are high enough to increase your benefit rate, Social Security will likely notify you of the increase in the fall of 2021. They will then increase your ongoing benefit rate and pay you any past due benefits retroactively to your benefit payment for January 2021.

Best, Jerry