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Social Security update on higher earnings expected in October
After claiming benefits at full retirement age in April 2021, a continuing pay rise may lift the monthly check when the earnings benefit is recalculated based on updated records.
A reader who began collecting Social Security at full retirement age in April 2021 and has continued working reports that their monthly benefit has not been adjusted this year despite higher earnings, and they are seeking next steps if the update does not occur.
In response, a financial advisor quoted by Yahoo Finance said the Social Security Administration makes earnings-based adjustments twice a year, with calculations in March and October, and advised waiting for an October notice about whether an adjustment will apply.
The advisor also explained that Social Security benefits are determined in part by a person’s highest 35 years of earnings, and that if the reader’s current salary is higher than prior top-earning years, the new earnings can replace lower years in the formula and increase the benefit.
Yahoo Finance further noted that if the October update does not happen, the claimant can contact Social Security to have their earnings record corrected, and the advisor pointed readers to their online SSA earnings record to review what is used for the benefit calculation.