The COLA would only affect this problem for the long-term in case they don't get a fix done.
The COLA doesn't start until you begin your SS benefit - it is computed using the current year CPI for the following years benefits. It is a percentage of whatever your current benefit is for that year.
Say you get a SS monthly benefit of $ 1000 (just using this cause it is easy for the math). For 2020, those who were already receiving SS benefit got a COLA of 1.3%. In this example: ($ 1000 X .013 = $ 13.00) so the SS benefit increased to $1013 monthly for 2021.
If the SS benefit itself is understated when you start receiving it (without a fix) then any COLA for any year afterwards will be understated - because it would be cumulative that will increase over time IF THE DON"T FIX IT.
A percentage of a bad number just makes the next number worse.
The AWI 2020 problem doesn't have anything to do with how the CPI is computed and the one they use for the annual COLA - If the AWI 2020 problem is corrected by some manner - the COLA will be correct when you begin your benefits.
The SS AWI (2021) for this year based on 2020 affects your benefit calculation when you file for benefits.
The COLA calculations for 2021, in effect for 2022, won't affect your benefit because you aren't getting one yet - the earliest you can file for your Old Age benefit is 62 and you are just now reaching 61.
It is the AWI - which affects the amount of your SS benefit when you file is what has to be corrected - hopefully.
Try This Link: especially read the parts entitled:
- Effects of Price Indexing
- What Can Be Done?
Congressional Research Service: 07/13/2020 - Social Security Benefits and the Effect of Declines in ...
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