Working After Full Retirement AgeWorking After Full Retirement Age

In our last column, we looked at what happens when your client begins collecting Social Security (SS) before his full retirement age (FRA) but keeps on working.  Now we’ll look at what happens if your client keeps on working after he reaches FRA.

When a worker begins to take retirement benefits, those benefits may be increased in subsequent years.  This happens anytime the worker's primary insurance amount (PIA) increases.  The PIA is the worker's retirement benefit at FRA.

Now let’s look at a question we get all the time.  Does a client’s SS benefit go up if he decides to work an extra year after he retires, say between the ages of 66 and 67? The answer is yes.  But he may be disappointed by the results. 

Cost of Living Adjustments

For many...