Boost Your Social Security: Working After Retirement

If you’re still working while receiving Social Security benefits, your checks may be temporarily reduced. But that changes at full retirement age, which is 67 for those born in 1960 or later.

Here’s what you should know about claiming at various ages, and how doing so can factor into your budget.

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When there’s no earnings cap

If you claim Social Security before reaching full retirement age, a portion of your benefits may be withheld depending on how much you earn above the administration’s established limits.

However, those limits go away when you reach full retirement age. You can then receive your entire Social Security check regardless of your salary. This distinction can make it easier to plan your budget around claiming Social Security at full retirement age and how much of an additional buffer it would provide.

Working can raise your benefit

Continuing to work into your 60s can boost your Social Security benefits by strengthening your work history. Some high-earning years now will replace low-earning years. The Social Security Administration looks back to your top 35 earning years, and having multiple high-earning years in your 60s can put you in a better position by the time you are ready to claim Social Security.

Social Security automatically recalculates your projected benefit each year that you work and build on your history, even if you have already claimed Social Security. This happens automatically, which means you don’t need to fill out a separate application to account for the difference.

Claim now or keep waiting?

Your Social Security benefit goes up by 8% per year for each year you delay after reaching full retirement age. The deferred benefit growth ends at 70.

This compound growth demonstrates the advantage of waiting before claiming if you do not need the money right away. If you can still keep up with bills with your salary, it may be best to just wait until you maximize your benefits.

As you think about whether it makes sense to claim benefits at full retirement age, you should review your earnings history by logging into or creating a “my Social Security” account. You can’t make changes to your record, but you can contact Social Security to resolve any errors. Correcting any underreported years can boost your Social Security benefit right away without any additional work. It’s also important to consider your taxes, since up to 85% of your benefits may be eligible for taxation.

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