Does PIA Change with COLA? My wife is two years younger than me. My income is higher than hers. My understanding (to this point) is that my PIA (Primary Insurance Amount) is the amount of my benefit I would receive at FRA (Full Retirement Age), which for me is at age 66.5 years. At my FRA, my wife will be 64 years and 9 months of age. Let's assume my PIA at my FRA is $2,000 per month and that I begin collecting my benefit at that time. Let's also assume my wife will file for SS benefits at her FRA, thus incurring no reduction for filing too early. . Let's assume her own benefit would be $500, which means she will likely instead receive a spousal benefit instead of her own benefit. When my wife hits her FRA, I will have been collecting SS for two years. Let's assume I received COLAs (Cost of Living Adjustments) for both years, making my latest benefit amount to be, let's say, $2,200. Will my wife's spousal benefit be 50% of my benefit when I first filed at my FRA - $1,000, or will it be 50% of my COLA-affected benefit - $1,100? Stated differently, does my PIA freeze at my FRA, or does it go up per COLA until such time my spouse files? Thanks.

Hi,

Yes, COLAs are applied to a person's PIA starting with the year after they turn age 62. For example, the PIA of a person born in 1955 would receive the COLA applicable in January 2018. Up until a person reaches age 62, their PIA is adjusted to keep pace with average wage increases, which is factored into the initial benefit calculation formula (https://www.ssa.gov/pubs/EN-05-10070.pdf).

You may want to consider using the maximization software available on this website to explore your options and determine the best overall filing strategy for you and your wife.

Best, Jerry