I'm Still Working, Why, Didn't I Get a Higher Social Security Benefit?
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“In this article, a 78 year old person who has been collecting Social Security for about 6 years asks Rusty why his contributions to SS haven’t resulted in his monthly payment increasing, as he was told they would. Rusty’s response clarified that SSA does, indeed, increase benefits when appropriate due to recent earnings, and explained why that may not have occurred in this person’s individual case. Rusty also explains in this audio how to verify that the person’s current SS amount is correct.”
Dear Rusty: I began collecting benefits at age 72 and am now 78. Since that time, I have continued to work and have contributed over $40,000 to Social Security over the last six years. At the time of my retirement, I was informed that the Social Security Administration (SSA) would review my contributions annually and replace lower-earning years from my 35-year record with my current higher-earning years.
Despite my current annual income exceeding $100,000, I have not seen an increase in my benefit amount over the past six years. I recently met with an SSA representative who confirmed that my benefits are being reviewed annually but did not provide specific details or evidence of these adjustments. Could you please advise me on how to formally verify that my benefits are being accurately reviewed and updated to reflect my continued contributions? Signed: Collecting and Still Working
Rusty’s answer in brief
Paying Social Security taxes while you collect does not by itself raise your benefit. Your benefit is based on your highest 35 years of earnings, adjusted for inflation, and it only goes up if a new year’s earnings beat one of those years. Because old earnings are inflated to today’s dollars, that bar can be higher than it looks: $50,000 earned in 1990 counts as about $125,000 now.
SSA does recheck earnings every year and pays any increase automatically, usually around October. To verify your own case, review your earnings history in your “my Social Security” account, run SSA’s online benefits calculator, and if you still believe you are underpaid, file a Request for Reconsideration (form SSA-561).
This recording presents the viewpoints of the AMAC Foundation’s Social Security Advisory Staff, trained and accredited under the National Social Security Advisors program of the National Social Security Association, LLC (NSSA). NSSA and the AMAC Foundation are not affiliated with or endorsed by the United States Government, the Social Security Administration, or any other state government. To request additional information, contact our Advisory Staff at 888-750-2622, or email us at SSAdvisor@AmacFoundation.org.