Hi Larry,
I have planned to start my Social Security retirement benefits in January 2022 when I will turn 70. But I am concerned about the possible drop in the average wage index from 2020 and it’s impact on my monthly benefits. Would it be better to start my benefits in December 2021 or wait one more month?

Thanks

Hi. The 2020 average wage index (AWI) would have no impact on the amount of your benefits. The only people whose benefits may be affected by a drop in the 2020 AWI are people who turn age 62 in 2022. Since you were born in 1952, your primary insurance amount (PIA) is calculated based on the AWI in the year 2012 (https://www.ssa.gov/oact/cola/awifactors.html). Starting your benefits a month early would just cause you to get a lower monthly benefit rate.

Best, Jerry