Question for Social Security experts for my brother

[MandM]

I have seen other posts with comments regarding people who have birthdays in the last quarter of the year if eligible SS recipients wait until January of the next year to start social security payments they lose part of the cost of living increase.

My oldest brother turns 62 in the early part of November 2022. He is single with no dependents. He has retiree health, dental, and vision from his corporate employer so ACA subsidy calculations are not a factor. He is 99% certain he will start taking at age 62.

If he does start at age 62, is it best to start in Nov. 2022, wait until Jan. 2023 or does it not really matter after all? Thanks for your assistance.

 

[omni550]

For 2021 COLA I found this:


"The latest COLA is 1.3 percent for Social Security benefits and SSI payments. Social Security benefits will increase by 1.3 percent beginning with the December 2020 benefits, which are payable in January 2021. Federal SSI payment levels will also increase by 1.3 percent effective for payments made for January 2021."


If your brother starts collecting SS at age 62, with a November birthday, his first SS benefit is paid in December 2021.

The first COLA for 2022 will be payable with the January 2022 benefit.

So it doesn't really matter.




But, every month he delays SS, the benefit paid increases a slight amount. So there's that. https://www.ssa.gov/oact/quickcalc/early_late.html



omni

 

[skipro33]

I recall for any COLA increase, I had to be on SS for a full year. So no one ever gets the COLA during the first 12 months of their SS payments that way. The COLA isn't prorated. You do not get part of it based on when you start taking SS and when the COLA goes into effect.
If I'm wrong, I'm sure to hear about it soon, but that's the way SS explained it to me when I when down to sign up in advance to start taking it at age 62 which occurred on Oct 27th.
Because my birthdate was the 4th week of October, the 27th to be precise, and SS always pays in arears, I earned my first month on November 27th and was paid for it on December 25th. (My birthdate triggers my payment on the 4th Tuesday of every month.)
I got my first COLA in January the first year after I started receiving my first SS check in November, which was my 14th SS payment I received.
It would seem to me that someone starting SS earlier in the year is going to wait more than 14 months to benefit the COLA increase. Say I took it in February. First COLA is in December, paid in January and I'm only 11 months into SS. Gotta wait another 12 months to get the next COLA to show up on my SS payment.

 

[MissMolly]

My birthday is also November (yesterday). Since he is turning 62, he cannot start SS until December (you must be 62 for a full month before you are eligible to file) which means his first check will be January. It will not make a difference whether he starts in December or January.

 

[MissMolly]

I think what your original post is referring to is the delayed credits which accrue throughout the year but are only applied in January of each year. Since your brother is applying when he turns 62, there won't be any delayed credits to worry about.

 

[copyright1997reloaded]

My birthday is also November (yesterday). Since he is turning 62, he cannot start SS until December (you must be 62 for a full month before you are eligible to file) which means his first check will be January. It will not make a difference whether he starts in December or January.

Happy birthday!

 

[MissMolly]

Happy birthday!

Thanks!

 

[MandM]

Thank you all for the feedback and clarifications.