For Americans, reaching retirement age no longer means the end of an active working life.
Many people are choosing to work past 65, according to the Department of Labor’s Bureau of Labor Statistics.
If you’re willing and able, maintaining gainful employment later in life can go a long way toward ensuring a secure future. Besides providing additional income to pay your bills, extending your employment or working for yourself could boost your lifetime Social Security benefits. Here’s how:
• Waiting to claim your Social Security retirement benefits could grow them by up to 32%. Through delayed retirement credits, your monthly benefit amount increases by about 8% for each year you wait between your full retirement age and 70. Full retirement age is between 65 & 67, depending on when you were born. To learn more about delayed retirement credits, please visit www.socialsecurity.gov/planners/retire/delayret.html.
• You get credits on your earnings record for each year of additional work income. When we calculate your retirement benefit amount, we use your best 35 years of earnings. We’ll increase your benefit amount if your new year of earnings is higher than one of the years we used to calculate your initial benefit amount. To see how we calculate your benefits, visit www.socialsecurity.gov/pubs/EN-05-10070.pdf.
An increased benefit amount for yourself could mean more support for your family, too, through Social Security spousal benefits, child benefits, and survivor benefits.
We also encourage you to set up your own my Social Security account so you can verify your lifetime earnings record, check the status of an application for benefits, and manage them after you’re receiving them. You can access all of our retirement resources at www.socialsecurity.gov/planners/retire.
~ Josh Weller, Social Security Public Affairs Specialist in Denver, CO