I am 73 years old and collect s.s. I also work. When will my s.s. payment increase because I paid into it last year while working.?
- curtisports2Lv 72 months ago
First, know what your highest 35 years of income are. Then, compare the last year of income, which will not yet have been included in the 35 year average, with the lowest, which will eventually be replaced. See how much that difference* is on a monthly basis.
Then, take those 35 years (not counting the last one), add them all up and divide by 35. See how much averages out to per year, divide that by 12 months.
Then, calculate the percentage your current monthly benefit is of that monthly average.
Whatever that percentage is (I'm guess maybe 60 -70%), take that same percentage of that earlier difference* - and that is roughly how much your monthly benefit should increase - in a year or two, when SS catches up.
- John AldenLv 72 months ago
Depends on your highest 35 years of income. I doubt you are increasing that average..
Social Security uses your lifetime average for monthly income, as calculated from your 35 highest-earning years and adjusted to reflect historical wage trends, as the basis for your benefit calculation. Even if you’ve already claimed your benefits, Social Security annually recalculates this average, factoring in any new income from work. If your current earnings fall into your top 35 earning years, your monthly average will rise, and so could your benefit.