Can You Increase Social Security Benefits by Working After Collecting Social Security?

How Your Benefit Is Calculated

Your Social Security retirement benefit is based on your average earnings over most of your working life. Your monthly payment will also be higher or lower depending on when you start receiving retirement benefits. If you do choose to receive retirement benefits at the earliest possible age, 62, you will receive a reduced benefit. However, if you wait until full retirement age, your benefit won't be reduced. Finally, if you wait until 70 to collect benefits, you may receive a higher benefit to make up for the years in which you didn't collect Social Security.

It's important to know your full retirement age when you're budgeting for retirement. If you were born in 1942 or earlier, your retirement age is 65. If you were born between 1943 and 1959, it's 66. If you were born in 1960 or later, it's 67. This doesn't mean that you have to wait until your full retirement age to stop working --- it's simply a way for Social Security to determine how old you must be to receive your maximum benefit.

If you're receiving Retirement benefits before full retirement age and you decide to go back to work, a portion of your benefits will be withheld. But when you reach full retirement age, your benefit will be higher to make up for the benefits the Social Security Administration held back.

If you decide to start working again after you've reached full retirement age, your benefit is likely to increase every year. The Social Security Administration automatically adjusts your benefit annually, depending on any changes in your income. Therefore, if you earned more last year by going back to work, in December of this year you'll see a raise in your monthly benefit.

If you decide to start working again after you've reached full retirement age, your benefit is likely to increase every year. The Social Security Administration automatically adjusts your benefit annually, depending on any changes in your income. Therefore, if you earned more last year by going back to work, in December of this year you'll see a raise in your monthly benefit.