Previous 5 year COLAS

[RayK964277]

Are the COLAs added before you retire when you apply to Social Security or when you retire and they adjust your payment??

[GailL1 · Accepted solution]

BEFORE a beneficiary begins to draw their SS benefits, any annual COLA is used to change the Average Wage Index - the figure used to figure  beneficiary’s benefit.

SSA.gov - National Average Wage Index

AFTER a beneficiary begins drawing their benefit, any annual COLA adjustment is added (in real dollars) to ones benefit for the following year, once the % determination has been computed in the preceding fall.