Most retirees assume that their Social Security payments are fixed for life once they start receiving their benefits. This notion is inaccurate as the government outlines that Social Security payments can still increase after retirement. It is therefore essential to understand how this works, as it can have a significant impact on your income over time.
Here are the three key reasons why your Social Security benefits might rise after you’ve claimed them.
1. Cost-of-Living Adjustments (COLA)
Since 1975, Social Security has incorporated automatic cost-of-living adjustments when deciding the amount to send to beneficiaries to enable them to cope with inflation. COLAs are reviewed annually using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W)
Every year, recipients of Social Security receive raided checks depending on the rate of inflation. Although COLAs are not guaranteed every year, some do not raise monthly benefits significantly. For instance, the COLA for 2025 was 2.5% and it has been one of the lowest in many years. However, despite the slight increase, it was still meaningful.
2. Continued Work After Retirement
The amount of Social Security benefits you receive is based on your 35 highest-earning years. If you continue working after claiming benefits, and your earnings exceed those from a lower-income year in your record, your benefits may be recalculated and increased.
“If you sign up for benefits with only a 32-year work history, but you continue to earn an income for three more years while on Social Security, those three years of zero earnings will be replaced… That could result in larger monthly benefits,” says Maurie Backman a financial blogger at The Motley Fool. Additionally, once you reach full retirement age, there is no limit to how much you can earn without affecting your benefits.
3. Withdrawing Your Claim and Refiling Later
It is possible to withdraw your Social Security application if you regret claiming early. However, you must do so within 12 months and repay all benefits that you have received. Withdrawing your claim allows you to refile at a later age and makes you eligible for higher monthly benefits.
As Backman notes:
“To undo your Social Security filing, you need to withdraw your benefits application and repay the Social Security Administration all of the money it paid you within a year.”
Although one can withdraw their claim only once in their lifetime, it allows retirees to improve their long-term benefit amount.
Conclusion
It is a common misconception that Social Security monthly benefits receive static forever. This is not true because retirees can receive increased Social Security income after claiming them due to factors such as COLAs, strategic filing changes, and working after retirement.
According to Backman, it is crucial to know the ins and outs of Social Security because understanding the rules of the program could be your ticket to qualifying for more money out of your benefits. Additionally, it is important to stay up to date with any changes and what they mean to your benefits.