Will your social security increase if you go to work after you begin to draw your social security?

Question

I'm 63 & my social security is $1500.00.I have started back to work & my employer deducts social security from my pay.Will this give me an increase in my social benifits next year?I know that i can make $13,800.00 before it reduces my benifits.

Answer 1

all it can do is hurt your beni's because you would need reapply each year, and then you lose the oldest year (I beleave they are only supposed to evaluate your pay out based on your last 5 or 10 years, but they dont count your early 20's)

Answer 2

once you start collecting - your rate is set - the only increases you will get are cost of living increases

Answer 3

Since Social Security benefits are based upon your lifetime income it cannot hurt and may very well help.  The formula is complicated and recent income has greater weight than income that is decades old but your benefits will NEVER fall because of work done after you become eligible for benefits and start collecting.

Also keep in mind that once you reach full retirement age (probably 66 or 67 in your case, check with SSA) the earnings offset will cease and you'll be able to earn as much as you wish without loss of benefits.

My Dad worked for nearly 20 years after reaching retirement age and collecting SS.  His income was near the earnings cap each year and his base benefit rose every year until the year before his death when he finally stopped working.

Answer 4

The SSA uses your top 35 years of earnings (weighted for inflation).  If you didn't work for a full 35 years, then any new year with income will replace an old year.

I've had relatives get more money after they went back to work.  

Answer 5

Assuming you are under full retirement age, for 2008 you can earn up to $13560.00 per year before your earnings begin to affect your benefit. Above that figure for every two dollars you make over the limit SSA will take back one.  

I know that sounds confusing so figure it this way.  You made $15000 in 2007.  Deduct $13560.00 from that amount and you are left with $2440. Since SSA withholds one dollar for every two that you are over the limit, divide the $2440 in half.  Your total excess earnings are now $1220.  That's a long way from the $15000 in earnings you started with so SSA is actually very generous to low wage earners.  Remember anything under $13560.00 basically flies "under the radar."

If you continue to pay into social security there is always the potential for an increase in benefits due to your earnings.  SSA uses your highest earnings years so you can't really hurt yourself by working as long as you remember the earnings test.  This changes the year you reach full retirement age.  If that was 2008 for you your earnings limit would be $36,120 and for every three dollars you were over that amount SSA would take back one.  From the month of full retirement age forward your earnings are no longer counted by SSA.  

Check SSA.gov for add'l information.  Best luck!