The Social Security Administration recently announced the largest annual cost of living adjustment in four decades, but it's going to apply to you?

Stick around and find out in this, the 45th episode of the Retirement Planning Education Podcast.

Welcome to the Retirement Planning Education Podcast, where you can learn all about IRAs and Roth IRAs, employer retirement plans, taxes, Social Security, Medicare, portfolio withdrawal strategies, annuities, estate planning, and much more. And now here's your host, Andy Panko.

Who knows where that's from? Anybody? Anybody? Fat Albert. Yeah, that's how Fat Albert used to say hi. So,

welcome. Welcome back to retirement planning education. Today I'll be talking about the recently

announced social security cost of living adjustment, or COA, which is the annual inflation adjustment that is announced

and made to Social Security benefits recently announced for 2023. So as I'm recording this,

it is, what is today? It is October 13th, Thursday, October 13th, 2022. This morning,

the Social Security Administration announced what the

2003 COLA across the living adjustment will be for Social Security payments. Big news, widely

expected to be one of the largest increases in decades. Sure enough, it is. This is the largest

cost of living adjustment in 40 years.

1981 was the next largest, and I'll touch on some of the historical high ones. So it's a big deal.

The good news is it's 8.7%, which means a lot of people's benefits are going to go up,

including those who have not yet started benefits, which I'll touch on. That's the good news. The bad news is obviously it means inflation has been that high, as we all

know. That's not breaking news to any of you all. So things cost more, which isn't good,

but at least we get the benefit of Social Security is going to go up for most people,

not everyone, and I'll explain what I mean. So that's the cost of limit adjustment. Today's episode, I'm going to go up for most people, not everyone, and I'll explain what I mean.

So that's the cost of living adjustment. Today's episode, I'm going to explain what it actually is, a little bit of history, a bit of how it's calculated, who it does apply to and who it does not apply to.

Spoiler alert, if you are under 62, you do not directly get the cost of living adjustment.

You do get some other form of inflation adjustment on your preliminary estimated benefits,

but you don't get the formal COLA as announced each year by the Social Security Administration.

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