COLA 2023: Check If You Are Eligible To Apply for Social Security Before COLA Takes Effect

November 7, 2022 Ritika Khara Stimulus Check, US Local News 0

COLA 2023: Check If You Are Eligible To Apply for Social Security Before COLA Takes Effect

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).

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.

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.

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I am a professional journalist and author who specializes in writing about the latest celebrity news and gossip. I have been covering the entertainment industry for over a decade. I enjoy sharing my insights and opinions on the most trending topics in celeb news, and I always strive to deliver accurate and reliable information to my readers. You can follow me on Twitter, Instagram, and Facebook to get the latest updates on your favorite celebrities.