Social Security retirement estimates on SSA website - do they already include COLA increases?

The retirement estimates shown on your MySocialSecurity account are in today's dollars only. They do NOT include any future COLAs. Those adjustments will be applied annually after you actually start receiving benefits, not during the estimation phase. The SSA has no way to predict future inflation rates, so they present all estimates in current dollar values. This actually makes planning easier because you can compare the purchasing power directly against today's expenses. When you actually claim benefits, your initial benefit amount will be calculated based on the exact formula in place at that time, and then future COLAs will be applied each year after you begin receiving benefits.

WRONG! your SS estimate DOES include predicted COLA increases. My brother works at SSA and told me they build in a standard 2.5% inflation projection into all future estimates!!!

I just wanted to say thanks for asking this question! I was wondering the exact same thing but was too embarrassed to ask. I'm 55 and looking at the same numbers wondering if I should be mentally adding inflation to these figures or not.

This is a common point of confusion. To be absolutely clear: the benefit estimates shown on the SSA website are in current dollars and do NOT include future COLAs. Here's how it works: 1. SSA takes your actual earnings history to date 2. They project your future earnings based on your recent work history 3. They apply the current benefit formula to calculate your Primary Insurance Amount (PIA) 4. They show you what that amount would be at different claiming ages (62, FRA, 70, etc.) All of this is expressed in today's dollars. After you start receiving benefits, you'll get the annual COLA increases. But there's no way for SSA to predict those, so they're not included in estimates. For your financial planning, you might want to factor in some estimated inflation rate to get a better sense of the actual dollar amounts you'll receive in the future.

I was literally just looking at this on my account yesterday and wondering the same thing!!! The numbers seemed too low if they already had COLA in them, but I wasnt sure. Makes way more sense now knowing theyre just current dollars.

If anyone is having trouble getting through to SSA to ask these kinds of questions (their wait times are ridiculous lately), I had success using Claimyr last month. It's a service that holds your place in line and calls you back when an agent is available. Saved me hours of waiting on hold. Their video shows how it works: https://youtu.be/Z-BRbJw3puU and you can find it at claimyr.com. Really helped me sort out a complicated question about my divorced spouse benefits that the website couldn't answer.

Just to add to this - I actually worked with a financial planner who recommended adding an estimated 2.5% per year myself to the SSA estimates when doing retirement planning. That way I could see the actual dollar amounts I might receive in future years. But yeah, the SSA site definitely shows current dollars only with no COLA included in those estimates.

ok so I checked with my brother again and he says I misunderstood him. The BENEFIT CALCULATOR may include projected COLA in some scenarios but the MySocialSecurity estimates do NOT include future COLA. Sorry for the confusion everyone!!

Wait im confused again. So the number I see for age 67 retirement will actually be HIGHER when I actually turn 67 because of all the COLAs between now and then? So like if im 55 now and looking at my age 67 benefit, by the time I actually hit 67 the real dollar amount could be way higher due to 12 years of inflation adjustments?

This is such a helpful thread! I'm 52 and have been stressing about this exact same thing. I kept looking at my estimated benefits thinking "there's no way these numbers will have the same buying power in 15 years." Now I understand that the SSA is showing me today's purchasing power, which actually makes way more sense for planning purposes. I can budget based on what those dollars would buy today, knowing that both my expenses and my benefits will likely inflate together over time. Thanks everyone for the clear explanations!

I'm glad I found this thread! I'm 60 and was having the exact same confusion about my SSA estimates. I kept thinking the numbers looked too low for what I'd need in retirement, but now I understand they're in today's purchasing power. This actually makes me feel much better about my planning - I was worried I was way behind on savings, but if those benefit amounts will grow with inflation, that changes my whole retirement picture. One thing I'm still wondering about though - do the delayed retirement credits (if I wait until 70 to claim) get calculated into those estimates, or are those also separate from the COLA issue?

This is exactly the kind of confusion I had when I first started looking at my SSA estimates! I'm 49 and was getting really stressed thinking those numbers seemed way too small for retirement. But now understanding that they're in today's dollars makes so much more sense - I can actually compare them to what I spend now rather than trying to guess what groceries will cost in 18 years. The key insight for me is that while the dollar amounts will be higher due to COLA increases, my expenses will likely inflate at roughly the same rate, so the purchasing power comparison is what really matters for planning. Thanks to everyone who explained this so clearly - it's taken a huge weight off my shoulders in terms of retirement anxiety!

As someone who's been helping folks navigate Social Security for years, I want to emphasize how important this distinction is for retirement planning. The SSA estimates in today's dollars are actually a gift to planners because they give you a realistic baseline to work with. Here's a practical tip: when you're doing your retirement budget, take those SSA estimates and treat them as your "floor" in today's purchasing power. Then you can plan your other retirement savings (401k, IRA, etc.) to bridge the gap between that floor and your desired lifestyle. Also remember that Social Security benefits are partially tax-free for many retirees (depending on your total income), which adds to their value compared to fully taxable retirement account withdrawals. This is another reason why comparing them in today's dollars is so helpful - you can factor in the tax advantages when planning your overall retirement income strategy.

This thread has been incredibly eye-opening! I'm 47 and just created my MySocialSecurity account last month, and I've been staring at those numbers wondering if they seemed realistic or not. Understanding that they're in today's purchasing power completely changes how I'm thinking about my retirement planning. What really strikes me is how this makes Social Security much more predictable as a planning tool - instead of trying to guess what inflation will do over the next 20 years, I can just focus on whether those benefit amounts would meet my basic needs at today's cost of living. It's like having a inflation-protected foundation for retirement that I can build other savings on top of. One thing I'm curious about - since these estimates assume I keep working at my current earnings level, should I be updating my projections every few years as my salary changes, or do the estimates automatically adjust based on my actual reported earnings to SSA?

I'm really grateful for this detailed discussion! As someone who's 44 and just starting to seriously think about retirement planning, I was making the same mistake of looking at those SSA estimates and thinking "that's not going to be enough money in 23 years!" Now I understand that I should be asking "would that amount cover my basic needs if I had to live on it TODAY?" - which is a much more manageable question to answer. This whole thread has helped me realize that Social Security is designed to maintain purchasing power over time, which is actually pretty reassuring. Instead of trying to do complex inflation calculations in my head, I can focus on making sure my other retirement savings will cover the gap between my Social Security "floor" and my desired lifestyle, all in today's dollars. Thanks to everyone who took the time to explain this - it's made retirement planning feel much less overwhelming!

This thread has been incredibly helpful! I'm 53 and have been putting off really digging into my Social Security planning because the numbers on the website just seemed confusing and unrealistic. Now I understand why - I was comparing today's estimates to what I imagined future expenses would be, which was making everything seem inadequate. The purchasing power perspective makes so much more sense. When I look at my estimated $2,890/month benefit at age 67 and think "could I cover my basic needs with that amount TODAY?" the answer is actually much more reassuring than when I was thinking "will $2,890 be enough in 14 years?" I love the idea of treating Social Security as an inflation-protected floor that I can build other retirement income on top of. It really simplifies the planning process and makes it feel much more manageable. Thanks to everyone for sharing their knowledge - this is exactly the kind of practical guidance that makes all the difference for those of us trying to figure this stuff out!

As someone who just joined this community and has been lurking in retirement planning forums for months, this thread is exactly what I needed to see! I'm 46 and have been avoiding looking at my Social Security estimates because I was terrified they'd be depressingly low. But after reading through all these explanations about the estimates being in today's purchasing power, I finally logged into my MySocialSecurity account last night. What a relief! When I stopped trying to imagine what my expenses will be in 21 years and instead asked "could I cover my basic needs with this amount at today's prices?", the numbers actually looked reasonable as a foundation to build on. I really appreciate how this community breaks down these confusing topics in such practical terms. The "inflation-protected floor" concept has completely changed how I'm approaching my retirement planning. Instead of feeling overwhelmed by trying to predict the future, I can focus on concrete steps I can take now. Thank you all for sharing your knowledge so generously!

I'm new to this community but wanted to jump in and say how incredibly helpful this entire discussion has been! I'm 39 and just started seriously thinking about retirement planning after a recent job change gave me a wake-up call about my financial future. Like so many others here, I was completely confused about whether the SSA estimates included future COLA increases. I actually made a spreadsheet trying to calculate inflation scenarios and was driving myself crazy with all the unknowns. Understanding that the estimates are in today's purchasing power is such a relief - it means I can actually use those numbers for realistic planning instead of wild guessing about future costs. The "inflation-protected floor" concept mentioned throughout this thread really resonates with me. It's so much easier to plan when you know you have this stable foundation that will maintain its buying power over time. Now I can focus on figuring out what additional savings I need to reach my lifestyle goals, all based on numbers I can actually understand and relate to. Thanks to everyone for taking the time to explain this so thoroughly - this community is an amazing resource for those of us trying to navigate these complex financial topics!

I'm new to this community and wanted to thank everyone for this incredibly informative discussion! I'm 50 and have been putting off creating my MySocialSecurity account because I was honestly intimidated by all the numbers and calculations involved. After reading through this entire thread, I finally took the plunge and logged in yesterday. What a difference understanding the purchasing power perspective makes! Instead of panicking about whether those benefit estimates would be "enough" in 17 years, I can now ask the much more practical question of whether they'd cover my essential expenses at today's cost of living. The answer is actually pretty reassuring when framed that way. I especially appreciate how multiple people explained the "inflation-protected floor" concept - that really clicked for me. Knowing that Social Security is designed to maintain its purchasing power over time takes so much uncertainty out of the planning process. Now I can focus on calculating how much additional savings I need to bridge the gap between that foundation and my desired retirement lifestyle, all using numbers that make sense in today's dollars. This community is such a valuable resource for breaking down these complex topics into understandable, actionable guidance. Thank you all for sharing your knowledge so generously!

I'm brand new to this community and just wanted to say how incredibly valuable this discussion has been! I'm 43 and have been avoiding my Social Security planning for way too long because the whole thing seemed so complicated and confusing. After reading through everyone's explanations about the estimates being in today's purchasing power, I finally worked up the courage to log into my MySocialSecurity account for the first time. What a relief to understand that I should be looking at those numbers and asking "could I live on this amount with today's expenses?" rather than trying to imagine what life will cost in 24 years! The "inflation-protected floor" concept that several people mentioned really resonates with me. It's such a smart way to think about Social Security - as this stable foundation that maintains its buying power over time, which I can then build additional retirement savings on top of. I was honestly getting paralyzed trying to do inflation math in my head for everything, but this framework makes retirement planning feel so much more manageable and concrete. Thank you to everyone who took the time to explain this so clearly - this community is an amazing resource for those of us just starting to figure all this out!

I'm new to this community and just wanted to express how grateful I am for this incredibly thorough discussion! I'm 48 and have been putting off really diving into my Social Security planning because I kept getting confused by the numbers on the MySocialSecurity website. Like so many others here, I was looking at my estimated benefits and thinking "how is this going to be enough in 19 years?!" Understanding that these estimates are shown in today's purchasing power has completely transformed how I'm approaching retirement planning. Instead of trying to do impossible inflation calculations in my head, I can now ask the much more practical question: "Would these benefit amounts cover my basic living expenses at current prices?" When I frame it that way, the numbers are actually quite reassuring as a foundation to build upon. The "inflation-protected floor" concept that's been discussed throughout this thread really clicks for me. Knowing that Social Security is designed to maintain its purchasing power over time through COLA adjustments takes so much uncertainty out of the planning process. It means I can focus on calculating how much additional retirement savings I need to bridge the gap between that stable foundation and my desired lifestyle, all using today's dollars that I can actually understand and relate to. Thank you to everyone who shared their expertise and experiences - this community is such a valuable resource for demystifying these complex financial topics!