Hi Larry, I turn 69 in early November, 2022. I am trying to decide if I should file when I turn 69 and get the benefit of the projected ‘large’ COLA in January 2023 or continue delaying until I turn 70 in November 2023. My estimated SS monthly benefit at 69 is $3343 and if I make the assumption that the COLA will be 8%, my monthly benefit would be $3610. My estimated monthly benefit at 70 is $3761. Am I really gaining that much by waiting until 70? Thanks so much for your guidance. Pam

Hi Pam. First of all, you'll get credit for the 2023 Social Security cost of living (COLA) increase no matter when you apply for benefits. All COLA increases that occur after a person turns age 62 are credited to the person's Social Security retirement benefit rate no matter when they apply for benefits.

However, you only receive delayed retirement credits (DRC) for the months between full retirement age (FRA) and age 70 for which you don't collect benefits. DRCs increase a person's benefit rate by 2/3rds of 1% per month, or 8% per year, so starting your retirement benefits at age 69 instead of age 70 will result in an 8% lower monthly benefit rate for the rest of your life. And, if you're married and if your spouse qualifies for survivor benefits after your death, that lower rate would carry over to their potential survivor benefit rate.

Furthermore, if you reach age 69 in November 2022 and if you claim benefits effective with that month, you'll initially only receive credits for the DRCs you earned through December 2021. You wouldn't be credited with the DRCs you earned for January through October of 2022 until Social Security gets around to recalculating your benefit rate. Those recalculations can take up to roughly 2 years to take place, although your rate increase would then be retroactive to your benefit rate effective January 2023.

Each person's best overall strategy for claiming benefits depends on numerous different factors. You should strongly consider using our software (https://maximizemysocialsecurity.com/purchase) to fully analyze and compare all of your various options so that you can determine what you believe would be your best strategy for maximizing your benefits.

Best, Jerry