How Working in Retirement Affects Your Social Security Benefit

If you work in retirement, your Social Security payments could be withheld.

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[Read: 12 Ways to Increase Your Social Security Payments]

For example, if you claim a Social Security benefit of $750 per month at age 62 in 2013, but then earn enough between ages 62 and 66 that all of your payments in those years are withheld, your payments would be boosted to $1,000 a month at age 66 to make up for the withheld payments. "If he's single and never been married and takes benefits early, the benefits he loses via Social Security's earnings test will be made up to him in the form of permanently higher benefits starting at full retirement age," says Kotlikoff. "But for such a person, the best strategy is likely to be to wait until 70 to collect." Also, if your latest year of earnings turns out to be one of your 35 highest-earning years in the workforce, your benefit will be recalculated to pay you for your higher earnings.