According to the SSA, working after the full retirement age (FRA) can increase your Social Security benefits up to $4,555.
According to the SSA, working after the full retirement age (FRA) can increase your Social Security benefits. (Photo: Yahoo Finance)
Earn More after Your Full Retirement Age
FRA is the age at which an individual is eligible to receive their full Social Security retirement benefits. This is usually between 66 and 67 years old depending on the birth year. For those who continue to work after reaching FRA, their benefits will increase by 8% each year until they reach age 70. This increase applies to both the worker and their spouse.
However, working after FRA also means that Social Security taxes will continue to be deducted from paychecks, further increasing the worker’s future benefits. The SSA notes that these additional benefits can add up to thousands of dollars over a lifetime. Working after FRA can also increase the overall Social Security trust fund, which helps ensure the continued solvency of the program for future generations.
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According to the SSA, working after the full retirement age (FRA) can increase your Social Security benefits. (Photo: US News)
The Longer You Wait The Larger Your Social Security Benefit Gets
It is important to note that if a person starts collecting Social Security benefits before their FRA, their benefits will be reduced. According to a post by Go Banking Rates, the SSA adjusts the benefits to account for the fact that the recipient is collecting benefits for a longer period of time.
In conclusion, working after FRA can be a smart financial decision for those who are able to do so. It will not only increase an individual’s Social Security benefits but also helps support the overall solvency of the program. For those considering this option, it is recommended to speak with a financial advisor to determine if it makes sense for their individual circumstances.
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