Social Security Column
Three Common Ways Your Social Security Payment Can Grow
After Retirement
By Erin Thompson, Social
Security Public Affairs Specialist in Toledo
Guest Column
You made the choice and now you are happily retired. You
filed online for your Social Security benefits. They arrive
each month in the correct amount exactly as expected. But,
did you ever wonder if your Social Security check could
increase? Once you begin receiving benefits, there are three
common ways benefit checks can increase: a cost of living
adjustment (COLA); additional work; or an adjustment at full
retirement age if you received reduced benefits and exceeded
the earnings limit.
The COLA is the most commonly known increase for Social
Security payments. We annually announce a COLA, and there’s
usually an increase in the Social Security and Supplemental
Security Income (SSI) benefit amount people receive each
month. By law, federal benefit rates increase when the cost
of living rises, as measured by the Department of Labor’s
Consumer Price Index (CPI-W). More than 66 million Americans
saw a 2.0 percent increase in their Social Security and SSI
benefits in 2018. For more information on the 2018 COLA,
visit
www.socialsecurity.gov/cola.
Social Security uses your highest 35 years of earnings to
figure your benefit amount when you sign up for benefits. If
you work after you begin receiving benefits, your additional
earnings may increase your payment. If you had fewer than 35
years of earnings when we figured your benefit, you will
replace a zero earnings year with new earnings. If you had
35 years or more, we will check to see if your new year of
earnings is higher than the lowest of the 35 years (after
considering indexing). We check additional earnings each
year you work while receiving Social Security. If an
increase is due, we send a notice and pay a one-time check
for the increase and your continuing payment will be
higher.
Maybe you chose to receive reduced Social Security
retirement benefits while continuing to work. You made the
choice to take benefits early, but at a reduced rate. If you
exceeded the allowable earnings limit and had some of your
benefits withheld, we will adjust your benefit once you
reach full retirement age. We will refigure your payment to
credit you for any months you did not receive payments.
Your monthly benefit will increase based on the crediting
months you receive. You can find additional information
about working and your benefit at
www.socialsecurity.gov/pubs/EN-05-10077.pdf.
Retirement just got more interesting since you learned about
potential increases to monthly payments. Social Security has
been securing your today and tomorrow for more than 80 years
with information and tools to help you achieve a successful
retirement.
|