Hi, this question is really getting into the weeds !! Let's say I file for benefits early and am collecting 75% of my You appPIA. I die a few years later. My widow would have a floor of 82.5% of my PIA at her survivor FRA, so would want to wait until at least 62 1/2 to reach that percentage. Now the question - what if my benefit had increased through COLA's to an amount that was now 85% of my PIA, would she now have a floor of 85% rather than 82.5% even though my initial filing was at 75% ?? Thanks a lot.

Hi. It appears as though you're mistaken on how Social Security cost of living (COLA) increases are applied. Any Social Security COLAs that occur after you start drawing Social Security retirement benefits are applied to both your PIA and benefit rate. So, assuming that you start out drawing at a reduced rate of 75% of your PIA and unless some of your benefits are subsequently withheld due to your earnings or are voluntarily suspended, your benefit rate would always amount to 75% of your PIA.

For example, say Bob has a PIA of $1000, but starts drawing his benefits at age 63 at a rate of 75% of his PIA, or $750. After Bob starts drawing benefits, there is a Social Security COLA of 10%. That would then raise Bob's PIA to $1100 (i.e. $1000 x 1.10), and his reduced benefit rate would increase to $825 (i.e. 75% of $1100). Thus, Bob's reduced benefit rate would remain at 75% of his PIA regardless of how many COLAs occur after he starts drawing benefits.

However, if Bob's reduced benefit rate at death had increased to more than 82.5% of his PIA because some of his benefits were withheld due to the Social Security earnings test or because he voluntarily suspended his benefits between full retirement age (FRA) and age 70, his widow could be paid up to as much as Bob's higher reduced benefit rate.

Best, Jerry