How Returning to Work Could Boost Your Social Security Benefits
For millions of Americans, Social Security forms a critical pillar of retirement income. While annual cost-of-living adjustments (COLAs) provide some relief, they often struggle to keep pace with inflation, leaving many beneficiaries searching for ways to stretch their monthly checks.
One frequently overlooked strategy involves returning to work, even part-time. The Social Security Administration (SSA) calculates benefits based on an individual’s 35 highest-earning years. Years with no earnings or very low income are factored in as zeros or low amounts, which can drag down the average and reduce monthly payments.
“If you have gaps in your work history or periods of low earnings, adding a year of solid income now can replace a weaker year in the SSA’s formula,” explains financial planner David Chen. “This can trigger a recalculation and lead to a permanently higher benefit.”
However, timing is crucial. Beneficiaries who have not yet reached their full retirement age (FRA)—which ranges from 66 to 67 depending on birth year—face earnings limits. Exceeding those limits may result in temporary withholding of benefits. Once at or beyond FRA, those limits disappear, allowing unrestricted earnings without benefit reduction.
Beyond the potential Social Security boost, working later in life can provide supplementary income, help cover rising expenses, and offer social and mental engagement that many retirees value.
/// Reader Reactions ///
Martha, 68, retired teacher: “I started tutoring part-time after retiring. Not only did it help with bills, but my Social Security check actually went up after the SSA recalculated. It felt like a reward for staying active.”
Robert, 62, former retail manager: “This is a band-aid solution. The real issue is that COLAs don’t reflect real inflation, and benefits are too low to begin with. Why should seniors have to keep working just to get what they were promised?”
Linda, 71, part-time consultant: “I returned to work mainly for the social connection, but the extra income and slight bump in my benefits were welcome surprises. It’s worth crunching the numbers if you’re able.”
Carlos, 59, planning to retire next year: “Articles like this remind me how important it is to review your earnings record with the SSA before claiming. A few strong earning years late in your career can make a meaningful difference.”
Experts advise reviewing your Social Security statement regularly and consulting with a financial advisor to understand how additional earnings might interact with your overall retirement plan.