I am 69 and started receiving 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 adjusted my monthly check every April based on my increased income over the past three years. However, they didn’t make the adjustment this year, even though my income is still the highest it’s ever been.
I have called Social Security twice and was told that “adjustments are calculated twice a year – in March and October – wait until October to hear if you will receive an adjustment to your benefits.” I am afraid that this is a complete oversight by Social Security based on my history. I am wondering what my next steps would be if Social Security is unable to adjust 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 to worry anymore. If the update does not occur in October, you can contact them to have your earnings record 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 affect your Social Security benefits. (And if you need help planning for Social Security or setting up a retirement plan, contact a fiduciary financial advisor.)
Working after filing Social Security benefits
If someone continues to work and earn a higher salary after they start receiving Social Security, as you did, then benefits will continue to increase.
Your benefit is based in part on your highest earning years out of 35 years, regardless of whether those years occurred before or after you began collecting your payments. If you now earn more than you did in any of your previous 35 highest earning years, your new salary will replace the lower salary in the formula and your benefit will increase.
Your income statement
Your earnings record is a record of your income that is subject to Social Security taxes. It is also what your advantage is based on. You can find your own income statement online by logging into your profile on the SSA website.
The SSA updates your earnings record each year with new earnings information as it becomes available. Because this information comes in at irregular intervals, your earnings history is not updated on a specific calendar date.
One potential “issue” that may have caused your benefits not to be updated in April is that your past earnings may not yet be reflected in your data. You can check that through the portal I mentioned. If you still see a “$0,” 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 claim Social Security or maximize your payments, talk to a financial advisor.)
Correct your profit figures
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 reported amount is less than your actual earnings, your benefit will not be as high as it should be. This is a possible reason why you did not receive the update. If the amount shown as your most recently reported income is not one of your highest 35 years, there will be no increase.
In any case, if your income information is incorrect, you should have it corrected by contacting the SSA and letting them know that you want to do so. It is a good idea to have income documentation on hand when you make that call.
While I’m sure you’d rather have the money now, rest assured that it won’t be gone forever. When benefits are updated to reflect new income, your new benefit amount will be adjusted retroactively. As a result, you’ll receive the value of any missed payments. (But if you need additional help with matters relating to 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 to see if your income statement is correct and up to date. If it is not, wait until your latest earnings are reported or call the Social Security Administration to make a correction. If you do not receive the October notice as you were told, and your income statement is correct, I suggest you contact them again. Sometimes a little persistence combined with patience is all you need.
Tips for Managing Social Security
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