I am currently 61 planning on drawing SSA at 62 in February 2020. Question is, does the yearly COLA get added to the estimated benefits amount calculated by the Benefits estimator calculator. For instance , currently it shows an estimate of 1706 monthly at age 62. Will that estimate be adjusted to include the COLA OF 1.6% prior to me applying for benefits?
If you don't turn 62 until after January 1 2020, then you won't be eligible for the upcoming 1.6% cost of living increase (COLA).
Up until the year you reach age 62, your Social Security retirement benefit rate is adjusted based on wage indexing (https://www.ssa.gov/pubs/EN-05-10070.pdf). Wage indexing causes your benefit rate to increase in accordance with increases in average U.S. wages. So basically, up until the year you reach age 62 your benefit rate is adjusted to keep pace with average wages, and after the year you reach age 62 your benefit rate is adjusted to keep pace with cost of living increases.
Before deciding when to start drawing your benefits, you should strongly consider using our software (https://maximizemysocialsecurity.com/purchase) to fully explore all of your options so that you'll be able to maximize your benefits.