Ask Larry

How Will The 8.7% COLA Be Applied?

The COLA is listed as 8.7%. Will that amount be applied to my current SS benefit via a multiplication of 1.087 x Current SS benefit or will it be applied by taking SS benefit and applying it by 1.00 - .087 ( .913 ). In other words SS benefit divided by .913. Dividing is the real increase versus multiplying is the short way of applying COLA.

Thank You

Hi. Your new benefit rate will be calculated by multiplying your current rate by 1.087, subject to dime and dollar down rounding ( No subtraction or division is involved.

Best, Jerry

Nov 4 2022 - 2:02pm
MaxiFi software running on a laptop
Get What's Yours!
Discover tens of thousands in extra retirement dollars with Maximize My Social Security software!
  • Find your maximized strategy
  • Unlimited what-ifs
  • Step-by-Step filing instructions
  • Our software's lifetime-benefit increase for an illustrative couple earning $65K each and planning to take retirement benefits at 62.

    Results will differ based on your specific case and filing strategy.

Getting Started is Easy
Web-based software. Works on ALL browsers. No download.