I am 61 years old: Will my Social Security benefits reflect the 8.7% increase?

[David3]

Since you were born in 1961, the ssa.tools calculator isn't showing any COLA adjustments. The PIA increase is based on the 2020 AWI increase of 1.0889195 (or about 8.9%) applied to 2020 and earlier SS earnings. The numbers seem to be the same in your specific case, but mine is about 8.8% more. It depends on your earnings over the years.

If you put in the same info and made your birth year 1960, it should give you the lower amount for your PIA and state that your PIA will be increased by 8.7% at the end of 2022 (the COLA).

Slight correction since there seems to be a lot of discussion on this topic. The 1.0889... increase is the 2021 AWI increase.

 

[Tafkah]

Since you were born in 1961, the ssa.tools calculator isn't showing any COLA adjustments.

I'm confused. I was born before 1960 and haven't applied for social security yet. But my ssa.gov estimated benefit numbers for 2023 haven't changed. Are you saying your estimated benefit numbers increased after the COLA announcement last week?

 

[djsander]

I'm confused. I was born before 1960 and haven't applied for social security yet. But my ssa.gov estimated benefit numbers for 2023 haven't changed. Are you saying your estimated benefit numbers increased after the COLA announcement last week?

I believe the increases will show in December.

 

[djsander]

For those who were in the military who may not know. If you served between 1957 and 2001 they adjust your military earnings by $100 for every $300 you have earned up to $1200/year. The calculation varies a little depending on which years, but appears to be the same final amounts. The adjustment is not made until you apply for SS. The money is added to your military earnings not to your final benefit. It may or may not help if those years are low and knocked out by higher earnings. So a little extra in the calculation for those that served. I figure mine will probably be knocked out by higher earnings. Will see when I finally apply.

 

[braumeister]

For those who were in the military who may not know. If you served between 1957 and 2001 they adjust your military earnings by $100 for every $300 you have earned up to $1200/year. The calculation varies a little depending on which years, but appears to be the same final amounts. The adjustment is not made until you apply for SS. The money is added to your military earnings not to your final benefit. It may or may not help if those years are low and knocked out by higher earnings. So a little extra in the calculation for those that served. I figure mine will probably be knocked out by higher earnings. Will see when I finally apply.

And to answer a followup question before it's asked, you don't have to apply for that adjustment; it's done automatically.

 

[djsander]

And to answer a followup question before it's asked, you don't have to apply for that adjustment; it's done automatically.

The best I have found that when you apply they will ask for a copy of your dd214 if they can’t verify your service. I’m guessing part of the application will ask about military service. It’s the government so there are probably various answers.

 

[braumeister]

The best I have found that when you apply they will ask for a copy of your dd214 if they can’t verify your service. I’m guessing part of the application will ask about military service. It’s the government so there are probably various answers.

Not at all. There was never any question; they simply knew of my military service. I looked at the numbers and verified that they made the adjustment automatically to get me a slightly higher SS payment than I would otherwise have gotten based on my earnings record.

 

[niven]

Slight correction since there seems to be a lot of discussion on this topic. The 1.0889... increase is the 2021 AWI increase.

Yes, I should have said the 2020 AWI factor not 2020 AWI increase. The factor for 2020 is 1.0889195.

 

[djsander]

Not at all. There was never any question; they simply knew of my military service. I looked at the numbers and verified that they made the adjustment automatically to get me a slightly higher SS payment than I would otherwise have gotten based on my earnings record.

Thanks for the info. One place said they would ask for it if they couldn’t verify service another location said it was automatic like you have said. I know that I stumbled across the military info not too long ago while looking up some other info and wasn’t sure how it worked. I’ll find out in a few years how well it works. I always seem to be a problem child!

 

[Out of Steam]

The indexing applies to all your years previous to turning 60. That high school job, mine was selling shoes, gets indexed, probably multiplied by 5. And so on with decreasing multiplier as you get more recent.

As someone who worked in a job where I didn't pay Social Security taxes for 17 years, those high school and college jobs will have an outsized role in my SS benefit.