Social Security retirement benefits may vary from one retiree to another. As you may already know, some people can retire at the age of 62. While others would prefer to do it at the age of 70. This fact will make them have a lower or higher payment if they take it at different ages. Apart from this, there are other sources of income that could make your retirement benefit change. For instance, when you carry on working.
Not surprisingly, many people aged 62 or older decide to go on working a bit longer. Since they feel young and strong enough to carry on their duties, they do not give up their jobs. Even if they got full retirement age, they are keen to make their career longer. In this way, they start to get more for their future Social Security benefits.
Therefore, for every single year you work extra, your Social Security record increases too. So, you are adding one more year to those earnings you have already made in the past. By making your income from all your working life grow, your retirement benefits will be higher too. There are some people who are eager and willing to receive a higher payment since they cannot cope with the amount of money they would get.
Are there any types of Social Security earnings that do not have the same rules?
In general, Social Security calculates the earnings of most American citizens that work similarly. However, there are some exceptions to the rule. It is like that for those who work on a Farm, or any Federal Government or Household Employment, those dealing with Military Service, NGO workers, or similar ones, those who get Railroad earnings, those who are self-employed, State and Local government employees, and finally those who work abroad.
As for other pensions, they can also change the amount of money that you get for your retirement benefit from Social Security. On many occasions, some pensions do not make any payments to Social Security. So, this will make your SS retirement benefits lower than those who pay taxes. This is the case for Windfall Elimination Provision or WEP. Apart from this one, the Government Pension Offset or GPO has the same problem. They do not pay taxes, so their income will be lower then.
The last case would be the one dealing with Income taxes and your Social Security benefits. Bear in mind that Social Security warns Americans that some of you might have to pay taxes. There are not many cases, but it sometimes happens in some particular situations. As it is vital to know all about your earnings, SS allows you to check any payments made by your boss. You can have a look at your personal Statement online. You just need to log in to my Social Security account.