So if I turn 62 on the 16th of Jan. I would not get the 5.9% increase if I file for benefits at 62. My question is if I wait until Jan 2023 would my estimated benefit be increased by 5.9% plus the 8% increase by waiting until 63 to take benefits.

Hi. No. Since you turn age 62 after January 1 2022 you won't receive the upcoming 5.9% cost of living (COLA) increase no matter when you start drawing your Social Security retirement benefits. You will be credited with all future COLAs that occur after you turn age 62, though, but the first COLA after that won't happen until at least December 2022.

If you wait until January 2023 to start drawing your benefits then a smaller reduction percentage will be applied to your benefit rate, but that wouldn't amount to as much as an 8% increase. 8% is the annual increase caused by delayed retirement credits (DRC), which can only be earned between a person's full retirement age (FRA) and age 70. The actual difference between your age 62 and age 63 amounts would be less than 8%.

For example, say Bill was born on January 16 1960 and he applies for benefits effective February 2022. By the way, that's the earliest month that Bill could qualify for Social Security retirement benefits because a person must be at least age 62 for a full month to be eligible. Bill's FRA rate, or his primary insurance amount (PIA), would be $2000, However, Bill's reduced age 62 rate is $1408. If Bill waited instead until January 2023 to start drawing, his benefit rate would be $1500. Assuming there's a COLA increase at the end of 2022, though, that would also be added to Bill's benefit rate regardless of when he starts drawing benefits.

You may want to strongly consider using our software (https://maximizemysocialsecurity.com/purchase) to fully analyze the options available to you in order to determine your best strategy for maximizing your benefits.

Best, Jerry