Enhanced Social Security Benefits: 3 Factors That Could Lead to an Increase Post-Claiming
In the realm of retirement planning, understanding the intricacies of Social Security benefits is crucial to maximising your income during your golden years. Here's a breakdown of how you can increase your Social Security benefits after claiming them.
Firstly, it's essential to know about Cost-of-Living Adjustments (COLA). These annual increases to Social Security benefits are based on inflation trends, helping to maintain purchasing power. For instance, in 2025, the COLA is set at 3.2%, a moderate increase compared to the historic 8.7% COLA in 2023. These adjustments are automatic each year to reflect cost inflation[1][3].
Another way to increase your Social Security benefits is by working after full retirement age. If you work while collecting benefits before reaching full retirement age and earn above a certain limit, your benefits may be temporarily reduced. However, once you reach full retirement age, there is no limit on how much you can earn, and your benefits may be recalculated to credit those withheld amounts, potentially increasing your future payments[1].
If you find yourself in a position where you've claimed Social Security benefits prematurely and wish to reconsider, Social Security allows you to withdraw your benefit application within 12 months of first claiming, repay all benefits received, and then reapply at a later date. This process lets you restart benefits at a higher amount if you delay claiming past your full retirement age, thus increasing your monthly checks through delayed retirement credits[2].
Sometimes, benefits can be increased retroactively due to changes in law or corrections. For example, the Social Security Fairness Act (SSFA) enacted starting 2024 eliminated certain penalties, leading to upward adjustments for affected retirees and retroactive payments as well[2].
It's worth noting that you can claim Social Security benefits at any point after turning 62, but doing so before full retirement age reduces the benefits. Earning more income during retirement, even in part-time jobs, can lead to larger Social Security benefit checks if the income surpasses previous top-earning years[1].
In summary, after claiming Social Security benefits, your payments can increase through yearly cost-of-living adjustments, credits from working after full retirement age, benefit recalculations from law changes, or by withdrawing and later reapplying to claim at a higher amount. The COLA is the most common, automatic increase, while working and legislative changes can also boost your ongoing benefits[1][2][3].
Remember, understanding the rules of Social Security can help maximise your benefits, and it's crucial to stay informed about any changes that may affect your retirement income. Seniors receiving Social Security for decades would lose buying power without COLAs, making these adjustments an important aspect of maintaining a comfortable lifestyle during retirement.
Sources: [1] AARP. (2023). How Work Affects Your Benefits. Retrieved from https://www.aarp.org/retirement/social-security/info-2022/how-work-affects-your-benefits.html
[2] Social Security Administration. (2023). Retroactive Payments. Retrieved from https://www.ssa.gov/planners/retire/whentopay.html
[3] Social Security Administration. (2023). Cost-of-Living Adjustment (COLA). Retrieved from https://www.ssa.gov/oact/cola/colasum.html
- Proactively monitoring personal-finance and the Social Security administration's updates can help in making informed decisions about working past full retirement age, as doing so can potentially increase future Social Security payments through benefit recalculations.
- In the realm of retirement planning, understanding the significance of personal-finance strategies, such as utilizing Cost-of-Living Adjustments (COLA) and managing income from retirement jobs, can help maximize Social Security income during one's golden years.
