The largest cost-of-living-adjustment since 1982 impacts 90% of seniors.

On October 13th, the Social Security Administration announced that Social Security benefits for tens of millions of Americans will increase in 2022. The press release stated the following:

“Social Security benefits for approximately 70 million Americans will increase 5.9% in 2022. The 5.9% cost-of-living adjustment (COLA) will begin with benefits payable to more than 64 million Social Security beneficiaries in January 2022. The maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $147,000.”

Biggest Leap Since 1982

This 5.9% leap in the annual COLA is the largest since 1982. According to the Social Security Administration, retirees will see an average of $92 added to their monthly benefits this year, raising the typical amount to $1,657.

Further, almost 9 out of every 10 people over the age of 65 receive Social Security and collectively, the social security payments make up about a third of their income (although that number is much higher for lower income seniors).

When to File for Social Security

Social Security benefits constitute a part of many retirement plans. Advice abounds about how and when you need to file. What is best for you and your family?

Generally, you can file for your Social Security retirement benefits when you reach age 62. But doing so will reduce your benefits by as much as 30% below what you might receive if you wait until your full retirement age. Accordingly, most financial planners recommend you delay filing to better maximize your lifetime benefits.

If you wait until your full retirement age –which is between 66 and 67 for most people– you will get your full benefit. If you can, consider waiting until age 70, which will increase your benefit because you will have earned what is called “delayed retirement benefits.”

In other words, there is no one-size-fits all answer to when you should start receiving Social Security.

Social Security is Only Part of Retirement

It is important to remember that although Social Security plays a role in supplementing one’s retirement income, it was never meant to be the only source of income.

Make Sure You Plan with Your Private Banker

Remember that at Popular One our licensed personnel can help you maximize your funds during retirement. Call us at 787-281-7272 to get started.