The Key Social Security Rule To Follow 1 Year Before You Retire

There's one major retirement rule to follow when it comes to Social Security, and it can only be done before you begin to claim benefits. You may already know whether you're on track for retirement, but your final year of work could still affect your retirement plans.

Here's what you need to do 1 year before you retire and start collecting Social Security benefits.

Social Security looks at your highest 35 years

Social Security doesn't simply base your benefit on your final salary or your last few years of work.

The Social Security Administration first adjusts earlier earnings for changes in average wages. It then uses your 35 highest years of indexed earnings to calculate your average indexed monthly earnings, or AIME.

SSA runs that number through a formula to determine your primary insurance amount, which is generally the benefit you would receive at full retirement age.

The important part for someone approaching retirement is what happens when there aren't 35 years to use. Missing years count as zeros, pulling down the average used to calculate your benefit.

One more year of work could replace a zero or low year

If you have only 34 years of covered earnings, another year of work could replace the zero currently included in your calculation.

Even if you already have 35 years, another year may still help. SSA uses your highest 35 years, so a stronger final year could knock out one of your lower-earning years.

For example, someone with 34 years of indexed earnings averaging $60,000 would have a zero included in the 35-year calculation. Adding a 35th year with $60,000 in earnings would raise that worker's average indexed monthly earnings. Under the 2026 Social Security benefit formula, that hypothetical increase would work out to roughly $46 more per month at full retirement age.

That works out to about $540 more during the first year alone, before future cost-of-living adjustments.

A partial final year may still help, too. Social Security looks at your covered earnings for the calendar year. If you retire partway through the year but still earn enough to beat one of the years currently in your top 35, that year could replace it.

Check your earnings record before leaving work

You don't have to guess what earnings SSA has on file. Sign in to your personal my Social Security account and select "Review your full earnings record now" under the Eligibility and Earnings section.

Go through the record year by year and compare it with old W-2s, tax returns, or other documents. Look especially for missing years or earnings amounts that appear unusually low. Don't immediately assume there's a mistake if this year's or last year's earnings haven't appeared. SSA says recent earnings may take time to show up.

This review also tells you something important before retirement: whether you already have 35 years of earnings and which years appear weakest.

Fix mistakes before you claim benefits

An error in your earnings history could affect the benefit you receive for years. SSA warns that even one year of missing earnings could reduce future benefits. If you find something wrong, gather supporting records such as W-2s, pay stubs, or tax returns.

You may be able to request an earnings correction online. Otherwise, SSA provides other ways to request a correction. There's also a standard time limit. SSA generally limits earnings-record corrections to 3 years, 3 months, and 15 days after the end of the tax year, although several exceptions apply.

Even when an exception is available, correcting the record sooner is easier than tracking down paperwork from decades ago.

Retiring and claiming Social Security are separate decisions

Leaving your job doesn't mean you have to start Social Security immediately.

For people born in 1960 or later, the full retirement age is 67. Starting benefits at 62 results in benefits up to 30% lower than the full-retirement-age amount.

Waiting past full retirement age works in the other direction. For people born in 1943 or later, delayed retirement credits add 8% per year until age 70. That means someone with enough savings or other income to cover expenses could stop working and delay claiming Social Security.

The decision also matters if you keep working after claiming. In 2026, someone below full retirement age for the entire year has $1 in benefits withheld for every $2 earned above $24,480. SSA later adjusts the benefit at full retirement age to account for months when benefits were withheld.

Bottom line

If retirement is less than a year away, check your Social Security earnings record before you make your final exit from work. Count your earning years, look for mistakes, and see whether another year on the job would replace a zero or weaker year. That simple review could help you avoid money mistakes before your retirement income is locked in.

Keep in mind that leaving work and claiming Social Security run on separate timelines, and so does Medicare. If you plan to retire but hold off on benefits, SSA says you should still sign up for Medicare three months before your 65th birthday, even if you aren't ready to collect retirement benefits. Put that date on your calendar alongside your last day of work, so the money you need is in place before your first check arrives.

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