Easy Social Security question

[jm67]

Here's an easy one for you experts... I understand that my future social security benefits shown on my statement are given in current year (2023) dollars. After I start receiving benefits, they will of course increase due to the annual COLA. But... if I delay benefits to (say) age 70, will my initial benefits also be higher due to COLA's compounding between now and when I reach age 70? Or is the initial benefit "frozen" based on the actual earnings history?

 

[finnski1]

I believe if you are older than 61 then you will get all the COLA's accumulated between now and when benefits begin. If younger the use a different wage calculation for the adjustment.

 

[pb4uski]

+1

 

[GalaxyBoy]

Running the different scenarios (claiming at different ages) on the SSA calculator should give you what you need. All results are in present day dollars.

 

[Romer]

Running the different scenarios (claiming at different ages) on the SSA calculator should give you what you need. All results are in present day dollars.

That doesn't address the OP's question which relates to future COLAs.

This estimate has the 2023 COLA. I use 1.5% for future as an estimate per year and add it to the SSA site future estimates, summing the COLAs from previous years. Some years there are none, some they are pretty large, but the average over the last 20 years is 2.6% https://www.forbes.com/advisor/reti...xt=The average over the past 20 years is 2.6%.

I use 1.5% to be conservative and there is no other logic behind that

pb4uski is much smarter in this area than I am. He and finnski1 answered your original question

 

[gauss]

You do not forgo any SS Cola increases by claiming early. Not an issue.

-gauss

 

[CRLLS]

When I was in the planning stage, I did some cipherin' based on the SS annual report. I did this to help me decide when to claim by figuring the SS benefit decrease each year from age 66 down to age 62 and the increase from age 66 to 70. I held off filing on my own benefits in 2023 at age 70. What I can say is that my benefit at age 70 was much greater than what I had planned on for age 70 by ~22%. I think that suggests that you continue to gain the COLA adjustment.

 

[sengsational]

Your PIA will tick up with COLA increases as the years pass, as will the other amounts.

 

[Sunset]

You do not forgo any SS Cola increases by claiming early.....

Or later up to age 70