Retirement Social Security

4 Ways Working 1 More Year Could Increase Your Social Security Benefit

One extra year of work can adjust your lifetime earnings.

By David Maina

Edited by Kristy DeSmit

Updated Feb. 26, 2026

Add Us On Google

Many people focus on when to claim Social Security because the claiming age affects the size of each monthly payment. But your benefit also depends on your earnings record, and that's one part of the formula you can still influence late in your career.

Working one more year can increase your benefit by strengthening your highest-earning years, helping you delay claiming, or both. If you're trying to maximize your senior benefits, it helps to understand how those levers work together.

Here are four ways a single extra year of work can change the math and potentially raise what you collect over your lifetime.

Get a protection plan on all your appliances

Did you know if your air conditioner stops working, your homeowner’s insurance won’t cover it? Same with plumbing, electrical issues, appliances, and more.

A home warranty from Choice Home Warranty could pick up the slack where insurance falls short.

For a limited time, you can get your first month free with a Single Payment home warranty plan.

Get a free quote

Raising your lifetime earnings average

Social Security is based on your highest 35 years of earnings, not your last job title or your final salary. If you worked fewer than 35 years, the missing years count as zeros. And even if you have a full 35-year history, a low-earning year can still drag down the average that your benefit is built on.

Working one more year can help in two ways:

It can replace a zero year: If you don't have 35 years on record, adding another year of earnings immediately lifts your average because you're swapping "$0" for real wages.
It can push out a low year: If your new earnings are higher than one of your older years, the system drops that lower figure and uses the stronger one instead.

What many people don't realize is that this process doesn't always stop once you start collecting benefits.

If you keep working and your new earnings rank among your highest years, Social Security can update your record and increase your monthly payment going forward. The change usually happens automatically after your earnings are reported.

In all cases, you're raising the earnings average that your benefit is built on. And because that average carries through the entire formula, even one stronger year can increase your monthly check for life.

Who really has the cheapest auto insurance in your area? Check your zip code here.

Earning delayed retirement credits

Once your earnings record sets the base, timing determines how much of that benefit you actually receive. If you wait to claim after your full retirement age, Social Security increases your benefit through delayed retirement credits.

For many workers, the increase is about 8% for each year you delay, up to age 70. The boost is permanent, meaning every monthly payment for the rest of your life is based on that higher amount.

Working one more year after reaching full retirement age can make that delay realistic. The extra income can help cover your expenses while your benefit continues to grow in the background, turning one additional year of work into a higher monthly check for life.

Avoiding early claiming reductions

The timing rules work in reverse if you claim before full retirement age. Social Security lets you start benefits as early as 62, but the tradeoff is a permanent reduction for each month you claim early.

For example, if your full retirement age is 67, claiming at 62 can reduce your benefit by about 30%. Waiting even one year reduces that cut, because you're claiming fewer months early.

That's where working one more year can make a real difference. Extra income can help you hold off on filing, so you keep more of your calculated benefit. And for some people, one additional year of work is enough to get them to full retirement age, where the reduction disappears entirely.

Get a protection plan on all your appliances

Did you know if your air conditioner stops working, your homeowner’s insurance won’t cover it? Same with plumbing, electrical issues, appliances, and more.

Whether or not you’re a new homeowner, a home warranty from Choice Home Warranty could pick up the slack where insurance falls short and protect you against surprise expenses. If a covered system in your home breaks, you can call their hotline 24/7 to get it repaired.

For a limited time, you can get your first month free with a Single Payment home warranty plan.

Get a free quote

Increasing lifetime benefits through compounding

Social Security is designed to provide income for many years. Because payments continue month after month, the starting benefit you lock in plays a large role in how much you collect over time.

For example, if working one more year raises your benefit by $50 per month, that adds up to $600 in the first year. Over a 20-year retirement, those extra payments would total $12,000.

The impact can grow beyond that. Social Security usually applies annual cost-of-living adjustments (COLAs), and those increases are based on your monthly benefit amount. Starting with a higher check means each future adjustment is calculated on a larger base, which gradually widens the gap over time.

In other words, a modest increase early on does not stay small. It builds on itself year after year, leading to a higher total payout across retirement.

Bottom line

Working an extra year won't make sense for everyone. Health, family needs, or job realities can limit your options. But if you're able to stay on the job a little longer, that one year can work in your favor.

It can strengthen the earnings record used to calculate your benefit and give you room to delay claiming. For anyone planning for retirement, those two factors can add up to higher monthly checks and more income over time, making one additional year of work a decision worth weighing carefully.

More from FinanceBuzz: