Working after full retirement age doesn't just mean more income in your pocket. It can also lead to higher Social Security benefits.
In the following video from our "Social Security Q&A" series, Dan Caplinger, The Motley Fool's director of investment planning, answers a question from Fool reader James, who asks whether working after you start taking Social Security benefits can lead to an increased payout. Dan notes that obviously, if you wait to take Social Security until a later age because you're still working, you'll get more benefits because of delayed retirement credits. But Dan also points out that if your job qualifies as one of the top 35 earnings years of your career, then your benefits can go up that way as well. Dan concludes that working in retirement can be a good way to boost your overall income.
Have general questions about Social Security? Email them to SocialSecurity@fool.com, and they might be the subject of a future video!
Dan Caplinger and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
More from The Motley Fool
Most Americans Made Poor Financial Decisions This Holiday Season
Were you one of them?
4 Ways to Save More in Your 401(k) in 2018
Annual 401(k) contribution limits are going up next year, and it pays to take advantage.
How 1 Senator Got a Bigger Tax Break for Families
Pressure led to an increase in a key tax credit. Find out more about it here.