Can My Social Security Benefit Grow If I Work Past Age 70?

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Social Security benefits are a major part of many Americans’ retirement income. As people live longer, many more are working after the age of 70. If this is you, or may be you in the future, you’re probably wondering whether working after age 70 will increase your Social Security benefits.

How to get the maximum Social Security benefit

Your Social Security retirement benefits are based on a combination of when you’re taking benefits and your earnings history. Waiting until age 70 will get you the biggest monthly Social Security benefit. for 2021, Maximum Social Security benefit at age 70 Only $3,895 per month or $46,740 per year. This amount can increase with the Social Security cost-of-living adjustment (COLA), which is set at 5.9% for 2022.

Can Your Social Security Benefits Extend Past Age 70?

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you need to start taking Social Security benefits until age 70, There will be no increase in benefits to try to delay benefits beyond this age. However, you can increase your benefits if you continue to work after age 70. There is no age or time that your Social Security income can be frozen.

If you are working in a job that requires Social Security withholding, you will continue to pay into Social Security. Your earnings later in life can help cancel out the year where you didn’t earn much, thereby increasing the years of your work history used to calculate your Social Security benefits.

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How are my Social Security benefits calculated?

Social Security benefits are based on your 35 highest-paying working years, with some adjustments made for inflation. Earning $100,000 in 1970 is very different from earning $100,000 in 2021. I won’t bore you with the specifics of inflation adjustments here. Those working below 35 years will get less benefits. Therefore, working after 70 can help fill the year with zero or less than average income. It is common for people with many years of schooling (think doctors) or a history of low working hours for parents who left the workforce to raise children. This may also apply to those who took time off from work to care for an aging parent,

To get your final benefit, the Social Security Administration (SSA) calculates your average indexed monthly income, or AIME. Your AIME is calculated by dividing the sum of all your indexed salaries by 420. Ultimately, your actual Social Security benefit amount is calculated based on a variety of factors, such as the age at which you begin collecting benefits. Remember, benefits will drop if you start taking them before full retirement age.

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How do I get my Social Security estimated benefits?

I always recommend getting an estimate of your future Social Security benefits. You should check this more often to see that the closer you are to retirement and on a less frequent basis, the further away you are from leaving the workforce. You can register to view your official Social Security work history and projected future Social Security benefits SSA Administrative Site, Setting up an account is free.

While waiting until age 70 will result in the largest possible monthly Social Security benefit, it may not be the optimal age for everyone to receive the maximum lifetime benefit from Social Security. Consider your health and lifestyle, marital status, and financial need when choosing when to claim Social Security benefits.


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