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Will possible 6.1% COLA on SS make it smarter to claim this year?

By Terry Savage on July 19, 2021 | Financial Planning / Retirement

I will be 68 next month and haven’t taken SS yet. My plan was to wait until 70. My financial circumstances are such that I might have to draw SS beginning next year. If I start SS at this time of year would I be eligible for the projected 6.1% for 2022. If I still wait until January 2022 to begin SS, will the 6.1% affect that figure, or does the 6.1% only affect those who are currently receiving SS?

Terry Says

Interesting question — and it made me think twice. But waiting one more year (after one more birthday) will increase your base check by about 8% — even more than starting now and getting the 6% COLA projected for next year. So if you can wait until after your next birthday, you will come out ahead. Youll have a higher base payment upon which future COLAs will be applied.

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