Social Security Adjustment

[Christian]

On a personal note, I retired from a regular job some six years ago. I began drawing full social security benefits at that time. My tax prep business was and is a part time endeavor going back some thirty plus years. Like everyone I continue paying social security taxes on my self employment income. I was under the impression that after three years or so I would receive an adjustment for my continuing payments to the system as my dad did when he continued working after formal retirement. To date I have received not a dime of increase after having paid in some five more years. In talking to social security I did not receive what I considered a great explanation of why my benefits have not increased. Just wondering if any of you have had this experience and what you found out about your situation.  

[Jack from Ohio]

On a personal note, I retired from a regular job some six years ago. I began drawing full social security benefits at that time. My tax prep business was and is a part time endeavor going back some thirty plus years. Like everyone I continue paying social security taxes on my self employment income. I was under the impression that after three years or so I would receive an adjustment for my continuing payments to the system as my dad did when he continued working after formal retirement. To date I have received not a dime of increase after having paid in some five more years. In talking to social security I did not receive what I considered a great explanation of why my benefits have not increased. Just wondering if any of you have had this experience and what you found out about your situation.  

You will only get an increase if your earnings are greater than the top 35 earning years prior to your retirement.

[GeneInAlabama]

I get an increase in my social security each year because I don't even have 35 years of social security earnings.  I worked for the federal government quite a few years and social security wasn't paid in at that time.  When federal wages came under social security, I was grandfathered in the old regs and I opted to not be included.  Wish now I had.

[ADGFINANCIAL]

Yes, I retired @ 54 into ADG Financial. In my old job I was a Salesmen for an Electronic Co. for about21 years in that path I did about 60k a year. Before that about 35K a year mostly. ADG Financial does well. I use the SS to pay the taxes for the partnership I have with my wife. But My SS goes up every year as well as her's. Believe me when I say your not missing much. It's only a few dollars a month. About a cup of coffee. The COLA more.

[MsTabbyKats]

DH got a tiny tiny increase. Also...might get him a cup of coffee.

But...his current wages are probably more than his prior to retirement wages.

[GeneInAlabama]

Enough for a cup of coffee sounds about right unless his current wages are a WHOLE lot more than his prior wages.  Also, the prior wages are adjusted for inflation so even if the current wages are more, they might be less than the ADJUSTED prior wages.  Remember that the wages are based on the AVERAGE of 35 adjusted years.

[mcb39]

I get a small increase every year; but that is because I never joined the work force until my children were old enough to get off the bus and be alone for an hour.  Hence,  I had  not paid in for a total of 35 years.  Not even close.  I do appreciate the approximately $5 per month increase that I get now because my SS payment is still extremely low. (Less than $600 per month)  Without my SE income from Tax Prep and Accounting, we would be hurting.

[Christian]

Thanks to all. In adding up my thirty five years of payments and dividing by 35 I come up with a figure larger than what this part time work amounts to. Oh well, it never hurts to check these things and I still enjoy the work.

[mcb39]

Thanks to all. In adding up my thirty five years of payments and dividing by 35 I come up with a figure larger than what this part time work amounts to. Oh well,l it never hurts to check these things and I still enjoy the work.

 

And you also have the income from the work that you enjoy!

[Christian]

Yup, kinda do.   

[taxxcpa]

i used to get a small increase every year separately from the regular annual increase.  I had several years of civil service work, so the increases may have ended as soon as i got 35 years of SS coverage.

 

 However, I've noticed that I get slightly more than the annual percentage increase with my regular annual increase and I noticed that one of my  over-65 clients gets a much larger annual increase than the stated annual percentage increase.