I’m 69 and started collecting Social Security when I reached full retirement age in April 2021, but I still work full time and make a good income. My salary is 2.5 times what I earned four years ago. Social Security adjusts my monthly check in April each year based on the increase in my income over the past three years. However, they failed to make the adjustment this year, even though my income remains at its highest level ever.
I have called Social Security twice and was told “adjustments are calculated twice a year – March and October – wait until you receive a notice in October to see if you will receive an adjustment to your income benefit.” I am concerned that this is a complete surveillance by Social Security based on my history. I am wondering what my next steps would be if Social Security fails to readjust and reconfigure my income benefits.
-Kathleen
While I won’t tell you that interacting with the Social Security Administration will be a fun or enjoyable process, I don’t think you have reason to worry just yet. If the update doesn’t happen by October, you can contact them to have your earnings statement corrected. I don’t think you necessarily have a problem at this point. However, it’s worth considering how continuing to work full-time may impact your Social security benefits. (And if you need help planning for Social Security or creating a retirement plan, contact a fiduciary financial advisorr.)
Working after applying for Social Security benefits
If someone continues to work and earn a higher salary after starting to collect Social Security, as you did, their benefits will continue to increase.
Your benefit is based in part on your 35 highest earning years, whether those years occurred before or after your payment began. If you earn more today than in any of your highest 35 working years, your new salary replaces a lower salary in your highest 35 working years. formula and your benefit will increase.
Your income statement
Your income statement is a history of your income subject to Social Security taxes. This is also what your service is based on. You can find your own income statement online by logging into your profile on the SSA website.
The SSA updates your income report with new income information each year, as it becomes available. Because this information is coming at irregular intervalsYour income history is not updated on any specific calendar date.
One potential “issue” that may have prevented your benefits from being updated in April is that your record may not yet reflect your previous earnings. You can check this through the portal I mentioned. If you still see a “$0” listed, that’s the culprit. You can check back periodically to see if the update has been posted. (And if you need help deciding when to file for Social Security or maximize your payments, speak with a financial advisor.)
Correct your income statement
Of course, the information in your file is not always accurate. If your recent earnings are already there, make sure they are correct. If the amount reported is less than your actual earnings, your benefit will not be as high as it should be. This is a potential reason why you did not receive the update. If the amount shown as your most recently reported income is not part of your highest 35 years then it would not create an increase.
Regardless, if your income is not accurate, you should have it corrected by contacting the SSA and letting them know that this is what you would like to do. It’s a good idea to have income documentation handy when you make that call.
While I’m sure you would prefer to receive the money now, rest assured that you haven’t lost it forever. When benefits are updated to reflect new income, your new benefit amount is adjusted retroactively. As a result, you will receive the value of any missed payments. (But if you need additional help with questions about Social Security or your other sources of retirement income, contact a financial advisor and see what they can do for you.)
Conclusion
I suggest you start by checking that your income statement is accurate and up to date. Otherwise, wait until your latest income is reported or call the Social Security Administration to make a correction. If you do not receive the notice in October as you were told and your income is correct, I suggest you contact them again. Sometimes a little perseverance and patience is enough.
Tips for Managing Social Security
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