Welcome to Ask Clark, a column designed to answer your financial questions, by money expert Clark Howard.
If I Wait To Collect Social Security, Will I Still Get the New COLA Increase?
The Social Security Administration recently announced that benefits will increase 5.9% in 2022.
Clark’s Consumer Action Center has gotten several calls asking whether the increase includes those who wait to collect Social Security benefits until they turn 70, which Clark recommends.
Clark’s Take on Whether You Can Still Qualify for the 5.9% Increase if You Wait To Collect Social Security
Clark says: The new rates benefit current and future recipients.
“The cost-of-living adjustment benefits people who are already receiving Social Security but also benefits if you delay receiving Social Security,” Clark says.
The Social Security Administration explains it this way: “You’re eligible for cost-of-living benefit increases starting with the year you become age 62. This is true even if you don’t get benefits until your full retirement age or even age 70. We add cost-of-living increases to your benefit beginning with the year you reach 62. Benefits are adjusted yearly to reflect the increase.”
“It increases what you’ll receive eventually, and each year you wait, the base amount is based on this new higher amount. Every additional year grows from there,” Clark adds.
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- How To Save and Invest the Clark Howard Way
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- How To Become a Millionaire With an IRA