I was born March 13, 1961. I will be 62 March 13, 2023. My SSA.gov estimate is $2025 per month . Assuming the 2023 COLA is 9 percent , will that Cola change my benefit amount . I plan to start drawing at age 62 . Thank you

Hi. No. Only people born prior to January 2 1961 will have the January 2023 Social Security cost of living (COLA) increase added to their Social Security retirement benefit rate, and they'll receive credit for the upcoming COLA regardless of when they start drawing benefits.

Up until a person reaches age 62, their Social Security retirement benefit rate is adjusted to keep pace with wage increases rather than cost of living increases. The formula for computing those adjustments is complex, but an explanation can be found on the following Social Security website: https://www.ssa.gov/oact/progdata/retirebenefit1.html.

One thing's for certain, if you start drawing your benefits at age 62 you'll receive your lowest possible monthly benefit rate. Retirement benefit rates for people born after January 1 1960 are reduced by roughly 30% if taken at age 62 rather than at full retirement age (FRA), and their age 62 rate is roughly 76% lower than the rate they'd receive if they waited until age 70 to start drawing Social Security retirement benefits. Furthermore, taking benefits early can also adversely affect the survivor rate that could be paid to a surviving spouse. Before you decide on when to start drawing your benefits, you should strongly consider using our software (https://maximizemysocialsecurity.com/purchase) to fully analyze all of your options so that you can determine your best strategy for maximizing your benefits.

Best, Jerry