Social security — can you get COLA and a bonus for waiting?
My brother in law keeps telling my husband, who will be 70 next June, that he should start collecting in October. Here’s the latest text from him:
“CPI is in for August at 8.3 per cent September should be around 7 per cent, that’s a 7.9 avg. So retire in October. You’ll have 2 percent for Jul, Aug, Sept good for your Oct retirement then you’ll get the avg for Jul, Aug and Sep for my guess of 7 to 7.9 percent, most news reports say it will be 8 or more. You’ll get almost 2 to 3 percent by retiring and getting the COLA increase in Jan. of 7 to 7.9 percent. Please put that cash in your pocket.
Say hi to Teresa, I’m sure you guys can figure a way to spend the extra 15-16,000 you’ll get from retiring in October.”
I don’t understand what he is talking about. Do you? Does it make sense?
Thank you,
Terry Says
It does NOT make sense. He should wait until age 70! The current Cost of Living Adjustment will be figured into his base check after he reaches 70, and he will also get an extra 8% for waiting a year. It’s amazing but true!
HE SHOULD WAIT. Your brother in law is dead wrong. Tell him I said so. And that economist Laurence Kotlikoff who created www.MaximizeMySocialSecurity.com is my source. Or you can pay the $40 and do the analysis online!
