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Social security

By Terry Savage on October 16, 2021 | Financial Planning / Retirement

Will the 5.9% projected social security increase affect want I will get when I reach my full retirement age (66 years, 4 months). I plan on collecting at that time which will be at the end of June 2022 or does it affect only people who are collecting already. Thanks for your time.

Terry Says

The annual COLA — cost of living — increase impacts only those who are already collecting. There is another important number that will impact your original basic benefit (beyond the age at which you start collecting). It is known as the Average Wage Index. To read more about that, click here.

It is the adjustment of the base payment “corrected” for the increases in the average wages earned (sort of,but not exactly), an inflation index to the base upon which you receive your first SS payment. This year the adjustment to the base was slightly over 2%.

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