Cannot set inflation rate from different time points
Response from developer
Thanks for using the app and your observation / review. You are correct, COLA (inflation) adjustments begin compounding at age 62, otherwise there would be very little incentive for retirees to delay receiving benefits. The calculator uses the unadjusted full retirement primary insurance amount in the calculations. If a person is already past their full retirement age and entering their current PIA into the calculator, the calculations would indeed be off, because the COLA has already been factored into their present PIA and has been factored in since the age of 62. For situations like this, the person would need to enter what their lower unadjusted PIA would have been prior to the adjustments, otherwise as you noted, they will have additional COLA added to their currently defined amount. If you would like to reach out to me directly I'd be happy to share the resources and formulas used to make these calculations if you might find them useful. There truly are a lot of nuances that can affect calculations and I highly recommend using a professional financial advisor in planning for the timing on when to take Social Security Benefits. **Disclaimer** All the information and tips presented here and in the app are for educational and resource purposes only. It is not intended to provide specific or investment advice. The accuracy of this tool is not guaranteed and it is highly recommended that you consult with your advisor regarding your individual situation.
