HI Larry,
I turned 62 in 2022. I think I understand that the PIA is now reasonably calculable, b/c AWI is in for 2020. However when looking at my estimated benefit on the my ss statement, does that estimate include any cola calculation or is it simple the "base" PIA? I do not think it would for this year since I believe the first time I would even be eligible for COLA will actually be next year (correct??) But do the ss benefit estimates provided to me going forward include COLAs or do I just have to wait until I begin benefits to get a "real" # which includes COLAs? I don't plan on beginning benefits until 70 and just want a good understanding of what the estimate on the statement is really showing me, so my financial plan is more accurate.

THANKS much

Hi. Social Security's benefit statements include past cost of living (COLA) increases, but not future projected COLA increases. If you were born in 1960 and on any day other than January 1st, then the first COLA increase that would be added to your primary insurance amount (PIA) would be the one that occurs in January 2023. All Social Security COLAs that occur after a person reaches age 62 are added to their Social Security retirement benefit rate regardless of when they start drawing benefits.

You may want to strongly consider using our software (https://maximizemysocialsecurity.com/purchase) to fully analyze all of your various options so that you can determine your best strategy for maximizing your benefits. Our software does allow you to calculate future benefit estimates that include projected COLA increases.

Best, Jerry