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I am 61 years old: Will my Social Security benefits reflect the 8.7% increase?
10-17-2022, 04:46 AM
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#1
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gone traveling
Join Date: Jul 2020
Location: Foot Loose and Fancy Free
Posts: 13
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I am 61 years old: Will my Social Security benefits reflect the 8.7% increase?
I can't get a straight answer to this question after hours of research. Please help!
I am getting the impression that the worst age to be for upcoming Social Security Checks is age 61. I am expecting to collect Social Security next year when I turn 62 years old. But read that people who are currently age 61 are in a donut hole for increases in future benefits increases.
The "impression" I get from my research says: I won't be eligible for the upcoming 8.7% Social Security inflation increase for 2023.
And I am not impacted by the large increase in the average annual wage that impacts how my historical pay is normed going back 35 years. That stops at age 60.
So if I understand correctly, my SS Amount at age 62 and going forward is not benefited from the 2022- or 2023 inflation increases, or the Average Annual wage figure because I am 61 years old.
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10-17-2022, 05:05 AM
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#2
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Recycles dryer sheets
Join Date: Dec 2016
Posts: 411
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As posted on the long SS thread:
https://www.helpwithmysocialsecurity...for-ages-60-62
the bad news: the result is that you don't get the increase, and will forever lag that percentage
the good news: there's nothing you could, or could have, done about it (you might get lucky if congress decides to somehow do something about it....there's a small precedent for that from before....but I wouldn't be holding my breath for that)
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10-17-2022, 05:05 AM
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#3
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Thinks s/he gets paid by the post
Join Date: Dec 2015
Location: Michigan
Posts: 4,962
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I am not familiar with the specifics of the donut hole, but I can say that any benefit after the next COLA will not show up until it goes into effect next year.
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"The mountains are calling, and I must go." John Muir
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10-17-2022, 05:10 AM
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#4
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Recycles dryer sheets
Join Date: Jun 2016
Location: Indian Head
Posts: 156
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If i was born mid December 1960, would i get next years COLA? Not sure how they do that.
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Retired on December 20th 2016, after 37 years with same company.
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10-17-2022, 05:17 AM
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#5
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Recycles dryer sheets
Join Date: Nov 2017
Location: Seattle
Posts: 452
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Quote:
Originally Posted by Digital Nomad
I can't get a straight answer to this question after hours of research. Please help!
I am getting the impression that the worst age to be for upcoming Social Security Checks is age 61. I am expecting to collect Social Security next year when I turn 62 years old. But read that people who are currently age 61 are in a donut hole for increases in future benefits increases.
The "impression" I get from my research says: I won't be eligible for the upcoming 8.7% Social Security inflation increase for 2023.
And I am not impacted by the large increase in the average annual wage that impacts how my historical pay is normed going back 35 years. That stops at age 60.
So if I understand correctly, my SS Amount at age 62 and going forward is not benefited from the 2022- or 2023 inflation increases, or the Average Annual wage figure because I am 61 years old.
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You won't get the 8.7% COLA. You will get all future COLA's. The juicy AWI of 8.89% is yours! It's applied to your income before age 60. Income past age 59 is not indexed. Things worked out fine for 1960 and 1961 cohorts. That's my interpretation.
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Retired 2015 at age 55...50/45/5 AA
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10-17-2022, 05:21 AM
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#6
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Recycles dryer sheets
Join Date: Nov 2017
Location: Seattle
Posts: 452
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Quote:
Originally Posted by chicamuxen
If i was born mid December 1960, would i get next years COLA? Not sure how they do that.
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An easy way to remember is, you will get the COLA that is announced in the year that you are 62.
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Retired 2015 at age 55...50/45/5 AA
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10-17-2022, 05:37 AM
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#7
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Thinks s/he gets paid by the post
Join Date: Sep 2006
Posts: 1,691
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Quote:
Originally Posted by chicamuxen
If i was born mid December 1960, would i get next years COLA? Not sure how they do that.
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Yes, but you didn’t get the 5.9% from last year.
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10-17-2022, 06:07 AM
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#8
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Recycles dryer sheets
Join Date: Nov 2017
Location: Seattle
Posts: 452
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Quote:
Originally Posted by teejayevans
Yes, but you didn’t get the 5.9% from last year.
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And you do get the pretty good AWI increase of 2.83% applied to years earnings prior to age 60, and early predictions of that were that it was going to be negative due to covid.
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Retired 2015 at age 55...50/45/5 AA
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10-17-2022, 05:51 PM
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#10
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2018
Location: Tampa
Posts: 11,230
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Quote:
Originally Posted by 4legsgood
And you do get the pretty good AWI increase of 2.83% applied to years earnings prior to age 60, and early predictions of that were that it was going to be negative due to covid.
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This is true and that article reference while technically correct, is just plain misleading.
Each year through age 61, one gets the AWI increase and the then the COLA increase from 62 onward.
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TGIM
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10-17-2022, 09:04 PM
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#11
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Recycles dryer sheets
Join Date: Mar 2016
Posts: 178
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Quote:
Originally Posted by Dtail
This is true and that article reference while technically correct, is just plain misleading.
Each year through age 61, one gets the AWI increase and the then the COLA increase from 62 onward.
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Yes, although the indexing factors lag behind. I don't think the following link has been posted in any of the recent threads.
https://www.ssa.gov/oact/cola/awifactors.html
Put in your year of first eligibility (2023 for OP's age 62) and it gives you the table of indexing factors applied to your earnings (up to the SS limit). The last two factors will be 1. So for OP, the last wage adjustment factor they get will be the 1.0889195 factor for the average wage difference between 2021 and 2020.
Note if you put in a year yet to be determined (2024 or higher), estimates will be used from the trustee's report for the additional years.
Also note the latest 1.0889195 factor for 2020 was used to increase the PIA bend points from $1024 and $6172 to $1115 and $6721 for 2023.
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10-18-2022, 06:31 AM
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#12
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Dryer sheet wannabe
Join Date: Sep 2022
Location: Melbourne
Posts: 10
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Quote:
Originally Posted by niven
Yes, although the indexing factors lag behind. I don't think the following link has been posted in any of the recent threads.
https://www.ssa.gov/oact/cola/awifactors.html
Put in your year of first eligibility (2023 for OP's age 62) and it gives you the table of indexing factors applied to your earnings (up to the SS limit). The last two factors will be 1. So for OP, the last wage adjustment factor they get will be the 1.0889195 factor for the average wage difference between 2021 and 2020.
Note if you put in a year yet to be determined (2024 or higher), estimates will be used from the trustee's report for the additional years.
Also note the latest 1.0889195 factor for 2020 was used to increase the PIA bend points from $1024 and $6172 to $1115 and $6721 for 2023.
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Born in 1960. I go to the linked website, put in 2022 as year of eligibility. It shows indexing factors for 2020 and 2021 as 1.0 and 1.0. Seems like I get no benefit from AWI nor COLA in those 2 years. What am I missing?
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10-18-2022, 06:53 AM
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#13
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Recycles dryer sheets
Join Date: Nov 2017
Location: Seattle
Posts: 452
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Quote:
Originally Posted by FloridaWizard
Born in 1960. I go to the linked website, put in 2022 as year of eligibility. It shows indexing factors for 2020 and 2021 as 1.0 and 1.0. Seems like I get no benefit from AWI nor COLA in those 2 years. What am I missing?
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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 explained in another thread:
Go to website below first for 'how to' instructions, you will then have to login to your soc security account and cut and paste your info. Voila, you will see your monthly social security benefit updated for latest AWI and COLA.
https://ssa.tools/
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Retired 2015 at age 55...50/45/5 AA
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10-18-2022, 09:15 AM
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#14
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Recycles dryer sheets
Join Date: Feb 2019
Posts: 117
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This Social Security Calculator has been updated with the new AWI numbers for next year.
If you copy and paste your earnings from the my Social Security site it will display your new benefit amounts.
https://ssa.tools/
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10-18-2022, 10:37 AM
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#15
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Recycles dryer sheets
Join Date: Mar 2016
Posts: 178
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Quote:
Originally Posted by FloridaWizard
Born in 1960. I go to the linked website, put in 2022 as year of eligibility. It shows indexing factors for 2020 and 2021 as 1.0 and 1.0. Seems like I get no benefit from AWI nor COLA in those 2 years. What am I missing?
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The AWI factors for 2018 and 2019 were determined and applied to you in 2020 and 2021. So you got your last two adjustments to AWI, but for previous years.
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10-21-2022, 03:46 PM
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#16
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Full time employment: Posting here.
Join Date: Sep 2008
Posts: 999
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I just plugged mine in the ssa.tools site above, and it does show the 8.7% increase $2361. Over todays number on the actual ssa.gov. site $2173. So, am a but confused? Will be 62 next Sep.
Just to confuse things. What am I missing?
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"I couldn't wait for success, so I went ahead without it." Ret. 2013 @ 51.
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10-21-2022, 04:21 PM
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#17
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Recycles dryer sheets
Join Date: Mar 2016
Posts: 178
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Quote:
Originally Posted by almost there
I just plugged mine in the ssa.tools site above, and it does show the 8.7% increase $2361. Over todays number on the actual ssa.gov. site $2173. So, am a but confused? Will be 62 next Sep.
Just to confuse things. What am I missing?
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Since you're turning 62 in 2023, you should get the AWI increase for 2020 of 1.0889195, which would be about the same as the COLA. I would have thought it would be a few dollars more based on your numbers.
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10-21-2022, 04:25 PM
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#18
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Recycles dryer sheets
Join Date: May 2018
Location: Port Orange
Posts: 131
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Similar situation.
I was trying to sort through this a few years ago. Mine was to wait until Apr and take at 70 or start in Dec and get the COLA. In my case, I had the option to start in Dec, catch the increase which after running the numbers was a better option that delaying.
In your case, like others said, you won’t see the bump. You have to be taking the benefit before the end of the year to get the COLA increase.
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10-21-2022, 04:26 PM
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#19
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Recycles dryer sheets
Join Date: Jan 2015
Location: Boerne
Posts: 421
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Short answer is if you were not turning 62 this year then I do not think you are getting it 🙁
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10-21-2022, 04:29 PM
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#20
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Thinks s/he gets paid by the post
Join Date: Aug 2012
Posts: 1,824
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Quote:
Originally Posted by Global Wizzo
I was trying to sort through this a few years ago. Mine was to wait until Apr and take at 70 or start in Dec and get the COLA. In my case, I had the option to start in Dec, catch the increase which after running the numbers was a better option that delaying.
In your case, like others said, you won’t see the bump. You have to be taking the benefit before the end of the year to get the COLA increase.
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I don't follow this. you were 69 in December and about to turn 70 the following April. You were going to get the COLA either way.
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