Misleading/False SS benefit information?

[Crabby Mike]

Regarding the COLA timing. The folks at the SSA and everything I found is the COL adjustment only applies the year following the year you start.



Your SSA adjusts the 8% for each year you delay. Your first COLAcomes in the nextJanuary, assuming there is one.



In my case, starting in December cost me about 88/month, but I got a 2.8% increase on the monthly amount. Starting one month later would have cost me that increase. That is worth about 90 per month or about 1100 for the year and that amount is part of the base for the next COLA. Not a large amount, but compounded for rest of your life changes the value equation of when to start.



If some one has better info, please jump in. The above was what I got from several sources. For the accountants, my numbers are approximates and not meant to be exact.

I too eagerly await an informed answer to this. To me it would seem obvious that each year's COLA applies across the board, and thus that you accomplished nothing COLA-wise by filing when you did. But if I've learned anything on this forum, it's that what's obvious to me isn't necessarily even correct -- whether due to flaws in my thinking, or in the system.

 

[pb4uski]

My understanding is that your benefit increases by COLA on January 1 of each year. So if you delay a year past your FRA your benefit increases 8% and on the following January 1 the 108% is increased for the COLA.

 

[joeea]

To me it would seem obvious that each year's COLA applies across the board, and thus that you accomplished nothing COLA-wise by filing when you did.

It is indeed obvious. And of course you are correct.

 

[Caskem]

When to take SS?

Rather than speculating, I simply did the math. I took what SS would pay me back for what I put in for over 40 years at 62, 66.4 and 70. Then divided by the number of months until my actuarial death age of 83. Guess what? The "break-even" was at 83. So, since I have no clue how long until that sweet relief that only death can bring arrives, I'll take the money as soon as I can. I can invest it better than the Feds.

 

[joeea]

Rather than speculating, I simply did the math. I took what SS would pay me back for what I put in for over 40 years at 62, 66.4 and 70. Then divided by the number of months until my actuarial death age of 83. Guess what? The "break-even" was at 83. So, since I have no clue how long until that sweet relief that only death can bring arrives, I'll take the money as soon as I can. I can invest it better than the Feds.

You will be making the same choice that many do, with the same thought process.

Hopefully if you are married you have also considered survivor benefits in your calculations.

And hopefully, you'll be able to invest such that you earn more than the 8% you would get for each year you delayed.

 

[eytonxav]

Nonsense! Everybody should buy highly leveraged rental properties, have somebody else manage them for little or nothing, and take month long vacations in exotic foreign countries. While in the foreign country set up a Crypto-Currancy mining operation that makes you additional 10's of thousands if not 100's of thousands of dollars.

Then return occasionally to this site and brag about how great it is to be you.

Your on a roll here buddy, keep the funny posts coming, as it enhances my coffee time