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social security payments increased?

Suppose you are collecting social security benefits and keep working, and suddenly get a big raise. Thus you pay more into the social security system. Does your benefit increase? They benefit formula is to look at your last 35 years of employment, calculate the average salary, and apply the formula (like 90% of the first $749, 32% of the amount till $4,517, 15% above that). But do they do the re- computation every year, or is it established only when you start taking benefits?

Reply to
removeps-groups
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From SSA:

Are there other ways that work can increase your benefits? Yes. Each year we review the records for all Social Security recipients who work. If your latest year of earnings turns out to be one of your highest years, we refigure your benefit and pay you any increase due. This is an automatic process and benefits are paid in December of the following year. For example, in December 2011, you should get an increase for your 2010 earnings if those earnings raised your benefit. The increase would be retroactive to January 2011.

Reply to
Alan

As Alan's cite below alludes to, it is the "best" 35 not the last 35 years of SSA earnings.

Reply to
Arthur Kamlet

...And "best" means highest, after applying the inflation adjustment. Also note the maximum salary cap (per year) which implies exceeding that amount, you get zero additional.

Reply to
D. Stussy

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