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Social Security inflation
Old 08-03-2020, 06:38 PM   #1
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Social Security inflation

I couldnít find this anywhere on the SS site.

When I go to the SS tool and see that Iíll be getting, say $1500 a month at age 62 or $2000 age 70...will that number go up with inflation?

I see it says that from age 62 on the numbers ďare adjusted yearlyĒ for cost of living increases. But what about before that?

To be clear, Say Iím 40 and I retire this year and donít contribute another penny ... and those are my numbers (assuming the calculation they used was also assuming I stop working tomorrow), will I receive those amounts in 22 years or will I receive some inflation adjusted version of that. I would have to assume itís the latter but with the gov I figured I would check.
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Old 08-03-2020, 06:47 PM   #2
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Yes, every year for the next 22 years they will increase IF there is a COLA, they do not change based on inflation directly.



The SS tool must be adjusted to show zero for all remaining years rather than if you keep earning for another 22 years. That will show your current numbers which will be adjusted by COLA.
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Old 08-03-2020, 07:13 PM   #3
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Quote:
Originally Posted by wmc1000 View Post
Yes, every year for the next 22 years they will increase IF there is a COLA, they do not change based on inflation directly.



The SS tool must be adjusted to show zero for all remaining years rather than if you keep earning for another 22 years. That will show your current numbers which will be adjusted by COLA.

Thanks. Thatís what I figured but want to make sure Iím crossing my tís and dotting Iís on this stuff.

Yep I put 0s in there for all other years. Thanks.
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Old 08-03-2020, 07:27 PM   #4
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The early years of SS COLA were quite high (I'm sure the "1970's Great Inflation" prompted the initial adjustments). If you ignore those years and start with 1984, the average COLA increase has been 2.6%. Of course nothing's guaranteed, and there were a few years with 0.0% COLA increase.
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