How Inflation Affects Social Security Benefits

Inflation and its influence on Social Security benefits are complex topics that often perplex individuals. To shed light on this matter, Dana Anspach, the CEO and founder of Sensible Money, joined Robert Powell, editor of Retirement Daily, for an insightful discussion.

[@madras61]

Excellent explanation of how inflation impacts social security benefits

[@pku2death]

Hello Dana and friends,
In that example with personal a and b, does that include the reduction of benefits for taking early retirement? Usually when someone takes ss at 62 they lose about 30%, is that baked into their computation. Also, is the +25% of benefits baked into retiring at 70?
Thanks much! Keep making content!😊

[@ralphparker]

You said that the benefits shown on the statement are assuming you continued to work. Even if so, the numbers don't change much. Year 62 benefit is 69.136 % of age 67 benefit and if they hadn't made that assumption it would of been 70% and similarly for age 70 benefit is 124.3 % verses 124 %. or the ration of age 70/62 benefit is 1.798 verses 1.771 or about 2.8% more to keep working till age 70 as opposed to retiring at 62 and waiting till 70 to collect benefits.

[@mikeconner8684]

So you get neither increase for age 61?