I am collecting retirement benefits. Do my benefits increase since I am still working and paying taxes?Published: February 20, 2023
Full question: Do my retirement benefits increase because I am still in the work force and therefore still paying taxes? I am 67 years old, receiving monthly Social Security benefits and still working.
This is a great question.
If you have already begun receiving your Social Security benefits you may still increase your benefit from working.
Social Security benefits are based on an individual’s highest 35 years of indexed earnings. If you are still working and your current earnings exceed one of your top 35 years, it will replace the lowest earnings (of the top 35 years). Your benefit would then be recalculated to include the new earnings.
However, even if working does not increase your benefit, you will still be required to pay the 6.2% payroll tax up to the maximum taxable earnings amount.
If you are looking for specific and personalized advice, you can speak with a professional here.