Larry, I just turned 70 (October, 2022) and will receive my first Social Security check in November based upon my earnings. My wife will turn 67 in December. She claimed Social Security when she was 62, and I made a restricted application on her benefits at my FRA of 65. I was planning to suspend her benefits in December for three years until she is 70 to increase her benefits by 8% a year for three years. However, with the 8.7% COLA for 2023 and probably a large COLA in 2024 if inflation remains high, suspending her benefits does not appear to be wise. While she will receive the annual 8% increase if her benefits are suspended, she will miss out on the COLAs. Is my thinking correct to just have her continue drawing her monthly benefits?

Hi. Your wife wouldn't miss out on any cost of living (COLA) increases if she suspends her benefits. All Social Security COLAs that occur after a person reaches age 62 are added to their Social Security retirement benefit rate regardless of whether or not the person is collecting their benefits. In other words, if your wife voluntarily suspends her benefits between now and age 70, when her benefits resume her benefit rate will include both the COLAs that occurred while her benefits were is suspense along with any delayed retirement credit (DRC) credits she accumulates.

Best, Jerry