Confused about COLA increase on SS benefits before turning 62 in 2025
I'll be turning 62 in June 2025 and I'm trying to understand how the COLA (Cost of Living Adjustment) affects my future benefits. I noticed my estimated Social Security benefit on my statement increased more than 3.1% before December last year. I'm confused about whether this was actually the COLA increase or something else. Do I have to actually be 62 and eligible for benefits to receive COLA increases, or do they apply to my estimated benefits before I file? My statement went up by about $130/month which seems higher than just the COLA percentage. Can anyone clarify how this works? I don't want to miscalculate my retirement budget based on wrong assumptions.
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Carmen Vega
COLAs apply to your benefit calculation even before you claim. The SSA applies COLAs to your Primary Insurance Amount (PIA) calculation starting at age 62, even if you wait until later to claim benefits. The increase you saw might be a combination of the COLA plus maybe additional earnings being included in your record? Did you have higher income recently that might have replaced a lower earning year in your calculation?
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Yuki Kobayashi
•Thanks! I did work a higher paying job last year that probably replaced an earlier year with lower earnings. I didn't realize both factors could be affecting my estimate at the same time. So just to confirm - even though I'm not collecting yet, my future benefit amount WILL increase with each year's COLA once I hit 62, correct?
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Andre Rousseau
your benefit estimate changes for lots of reasons not just cola. did u check ur earning record to make sure its all correct? thats what determines ur benefit amount
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Yuki Kobayashi
•I haven't checked my earnings record in detail, but I should probably do that. Is it easy to spot errors? I've worked for several different employers over the years and I'm worried some earnings might not be showing up correctly.
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Zoe Stavros
To directly answer your question: Yes, you will receive the benefit of COLA increases once you turn 62, even if you don't start collecting benefits until later. The COLA adjustments become part of your benefit calculation from age 62 onwards. However, the increase you saw on your statement could be due to multiple factors: 1. Recent higher earnings replacing lower earnings in your 35-year calculation 2. Wage indexing adjustments (different from COLA) 3. Corrections to your earnings record If the increase was around 3.1%, that matches the 2023 COLA. But if it was significantly higher as you mentioned, it's likely a combination of factors. You can verify exactly what changed by checking your detailed earnings history on MySocialSecurity and comparing it to previous statements.
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Yuki Kobayashi
•Thank you for the detailed explanation! This makes so much more sense now. I didn't realize there were so many factors that could affect my benefit estimate. I'll definitely log into MySocialSecurity and review my detailed earnings history to better understand what caused the increase.
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Jamal Harris
I had a similar confusion last year before I turned 65!! The SSA website is confusing and when I called to ask questions I was on hold FOREVER and then got disconnected twice. So frustrating!!!
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GalaxyGlider
•I had the same frustrating experience trying to get through to SSA about my benefit calculations. After getting disconnected three times, I found this service called Claimyr (claimyr.com) that got me connected to an actual SSA representative in under 20 minutes. They have a video showing how it works: https://youtu.be/Z-BRbJw3puU It was worth it to finally get clear answers about how my COLA adjustments would affect my benefits going forward. The rep explained exactly which factors were affecting my estimates and confirmed the COLA would apply after 62 even if I delayed claiming.
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Mei Wong
The COLA is applied to your benefit amount starting at age 62, regardless of when you actually claim. But remember that the COLA is just one piece of the benefit calculation puzzle. Your benefit estimate changes due to several factors: 1. Your recent earnings (especially if they're higher than earlier years) 2. Adjustments to the national Average Wage Index 3. Changes to the benefit formula itself 4. COLA increases once you reach 62 If your estimate increased by $130/month, that's much more than just the 3.1% COLA alone would account for. It's likely that your recent earnings improved your overall calculation.
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Liam Sullivan
•Is this really true? My brother said COLA only applies once you START receiving benefits, not when you turn 62. Now I'm confused about who's right...
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Zoe Stavros
To clarify the confusion: COLA definitely applies starting at age 62 regardless of when you claim benefits. This is explicitly stated in SSA's Program Operations Manual System (POMS). The way it works: Your Primary Insurance Amount (PIA) is calculated at age 62 based on your earnings history. After that, COLAs are applied to that amount every year there's an increase - even if you're waiting until 67, 70, or any age in between to actually claim benefits. If you haven't reached 62 yet, your estimate might show projected COLA increases, but they haven't actually been applied to your record yet.
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Liam Sullivan
•Thanks for clearing that up! My brother must have been confused. Really helpful info.
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Yuki Kobayashi
Thank you everyone for the helpful responses. I had no idea my benefit calculation was so complex! I'm going to check my earnings record and maybe try to speak with an SSA rep to fully understand my specific situation. This has been really educational - I appreciate all the explanations!
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Mei Wong
•Glad we could help! One last tip: if you're trying to calculate future benefits, remember that future COLAs are unknown, so any benefit projections beyond age 62 are just estimates based on historical averages. Good luck with your planning!
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