Q. I am still working full-time. I would like to know how my continued employment would affect my Social Security benefits. By how much will my benefit be increased for each year I work beyond my full retirement age?
A. The delayed retirement credit rate of increase for a worker born in 1940 is 7 percent per year (or 7/12 percent per month). The delayed retirement credit rate reached actuarial fairness at 8 percent for persons born in or after 1943.
When Social Security benefits begin, the Social Security Administration determines a primary benefit based on a worker’s 35 highest years of lifetime earnings (after old earnings are indexed to bring them up to date). Next, delayed retirement credits are added for each month after full retirement age a benefit is not paid. Cost-of-living adjustments from age 62 are applied to the enhanced benefit to determine the monthly benefit amount