Social Security will review your benefits calculation every year to check for increases. Thus, it is possible to positively influence your lifetime income averages if new earnings from wages can replace one of the 35 years used previously to compute your retirement amount. However, if you are continuing to work for this reason then it makes more sense to wait until full retirement age in to avoid the earnings cap.
This automatic annual review usually occurs in the fall, after all employer W-2’s are processed. For example, increases due to 2016 earnings were paid around June 2017, retroactive to January 2017.
Another annual event is the COLA (cost of living adjustment) review. In October 2016, the Social Security Administration announced that benefit would increase 0.3% to accommodate national cost of living increases effective with the January 2017 benefit payments. Most individuals will lose their COLA to Medicare Part B premium increases. In October 2015, the Social Security Administration announced there would not be a COLA increase for the 2016 benefit payments. In October 2014, the Social Security Administration announced that benefits would increase 1.7% to accommodate national cost of living increases effective with the January 2015 benefit payments. The COLA adjustment was 1.5% effective with the January 2014 benefit payments, 1.7% in 2013 and 3.6% in 2012. There were no COLA increases in benefit payments for 2010 or 2011.