Dear Help Me Retire,
I worked until I hit 70. I started receiving my Social Security at 67, my Full Retirement Age. Since I’ve continued to work, should my Social Security monthly payments increase?
Worked Hard
Dear Worked Hard,
Working past your Full Retirement Age can result in higher monthly Social Security benefits, but it isn’t guaranteed. In your case, you would have already seen adjustments for previous years after Full Retirement Age.
“Each year we review the records for all Social Security beneficiaries who work,” the Social Security Administration says about increasing benefits. “If your latest year of earnings turns out to be one of your highest years, we refigure your benefit and pay you any increase due. This is an automatic process, and benefits are paid in December of the following year.”
The agency gave an example: If your 2024 earnings resulted in an increase in benefits, you’d see those changes in December 2025 and the increase would be retroactive to January 2025. This means that, depending on your last year’s earnings, you might also see an increase this coming December, but previous years’ benefits would have already included adjustments.
You can expect a bump in benefits next year, regardless. The cost-of-living adjustment (COLA) is expected to jump to 2.8% in 2026, according to the latest estimates. The official COLA for next year is expected to be released Oct. 15, though the government shutdown could impact the timeline.
Check your earnings history
As you may already know, the Social Security Administration uses the 35 highest earning years when calculating monthly benefits. If you’re not sure where your last few years fit into that history, you can (and should) create an online account with the Social Security Administration if you haven’t already.
There are a few reasons to have an account. For starters, you can check all of your personal data to ensure the agency has the most updated and accurate information. But you can get even more granular, such as checking your Social Security statements and reviewing your earnings history. This is great practice for everyone, since it’s better to catch mistakes as soon as possible – who wants to try and correct information about a job from 25 years ago?
On top of all of that, online accounts do allow individuals to conduct some business, including requesting replacement cards or obtaining benefit verification documents. And lastly, it allows individuals to have control of their accounts, which could otherwise be the target of scammers. (Of course, always be vigilant with your personal information, even after having an account).
The maximum amount of benefits
There is a maximum amount you can earn. “Retirement benefits depend on your earnings history, the age you retire, and the year you retire,” the SSA says. “There is no simple maximum amount that covers everyone receiving retirement benefits.”
“The following examples apply if you earned the taxable maximum in each year beginning at age 22 and start receiving benefits in 2025,” it adds. “If you retire at full retirement age in 2025, your benefit would be $4,018. If you retire at age 62 in 2025, your benefit would be $2,831. If you retire at age 70 in 2025, your benefit would be $5,108.”
For others reading this column, one way to make the most of your Social Security benefits is to delay claiming. For those who wait to claim their benefits when they retire at 65, they would receive a reduction of the full amount they’re owed at FRA (age 67 for anyone born in and after 1960). The longer you wait after your FRA, the more you get — approximately 8% for each year up until age 70. But, as you now know, money withheld while working will be reimbursed when you reach FRA. Read more here.
As I told this reader, working while claiming benefits can also reduce what you get each month, at least temporarily, until you reach FRA. In 2025, the SSA will deduct $1 for every $2 over a limit of $23,400 in earnings for anyone who is working in the years before the year of their FRA. For those who are in the year of their FRA, the Social Security Administration deducts $1 for every $3 for the months before the month of one’s FRA.
You, however, waited until your Full Retirement Age, which allowed you to get 100% of the benefit you’re owed, and you continued to work, which might have given you a boost in benefits. Now just stay on top of your hard-earned benefits.
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