Due to a historical 8.7% cost-of-living adjustment, the typical Social Security check is expected to increase by nearly $147 in 2019. (COLA). That’s fantastic news for seniors who have already applied for benefits, but it raises a concern for all those who are qualified but haven’t done so.
How The Government Adjusts Social Security Payouts
The federal government determines your primary insurance amount when you submit your initial Social Security application. Inflation-adjusted average monthly earnings from your 35 years of peak earnings are used to determine this.
Your AIME is added by the government to the benefit calculation used in the year you age 62. This formula’s output reveals how much you’ll receive once you reach FRA (full retirement age).
Should You Sign Up for Social Security Before the 2023 COLA Kicks In? https://t.co/aDIJ5Hx8nf
— Eugene (@studiedfinance) November 6, 2022
Depending on your year of birth, that translates to a worker today between the ages of 66 and 67. No matter whenever you file your claim, the government will add the 8.7% COLA for 2023 to this amount. You won’t lose out on that pension bump whether you enroll in 2022 or wait until 2023 or later.
Enrollment For Social Security Benefits
Some people might benefit from enrolling in 2022, although this depends more on their FRAs and individual circumstances than that of the 8.7% COLA.
You will be aware of the benefit you can anticipate at your FRA if you take the steps described above. But there is an additional stage in the calculation of your benefits if you decide not to enroll at that age. If you join up as soon as possible at age 62, you will receive a 25% discount if the FRA is 66 or even a 30% discount if it is 67.
The most convenient way to do business with #SocialSecurity is online. Visit our website to learn how we can help you secure your today and tomorrow. https://t.co/51FfXUVeUG pic.twitter.com/V1z447Z5oN
— Social Security (@SocialSecurity) November 6, 2022
On the other side, if you choose to postpone receiving benefits past your FRA, they will increase by 0.75% every month until you reach the maximum benefit age of 70.
If the FRA is 67, you receive an additional 24% per month, or 32% if it is 66. The ideal claiming age largely depends on your financial condition and life expectancy.
If you are dealing with a terminal disease or finding it difficult to pay your expenses without Social Security, filing an early claim often makes sense. However, enrolling early may mean accepting a lower lifetime payout if you live into your 80s or beyond reports The Motley Fool.
Check Benefits
Related Stories:
Social Security COLA 2023: Massive Increase In COLA To Take Effect Soon
Social Security COLA 2023: Americans May Receive December Raise; Are You Eligible?
Social Security COLA Nov. 2022 Payment Schedule: 3 Direct Payments To Drop; Check if you are eligible
Social Security COLA: Check If You Are Eligible For Provisional Income
Social Security Updates: 4 Biggest Modifications Arriving In 2023 – Check If You Are Eligible
COLA 2023: Significant Social Security Changes Commencing from January 2023
Social Security’s COLA 2023 Increases; Check details
Social Security COLA 2023: When Will The Increase In Benefits Start?
