Social Security on course for biggest increase since 1983: Read an article on AOL earlier today that said due to the level of inflation, the Social Security cost of living allowance is...

flip1948 Loc: Hamden, CT

Read an article on AOL earlier today that said due to the level of inflation, the Social Security cost of living allowance is currently on course to hit 5.8% this year. There are still 3 more months before the final figure is determined, but that would be the largest COLA since 1983.

I can remember it being 0% two years in a row within the last several years...so this would be welcome...at least in my house.

tcthome Loc: NJ

flip1948 wrote:

Read an article on AOL earlier today that said due to the level of inflation, the Social Security cost of living allowance is currently on course to hit 5.8% this year. There are still 3 more months before the final figure is determined, but that would be the largest COLA since 1983.

I can remember it being 0% two years in a row within the last several years...so this would be welcome...at least in my house.

With inflation SS & the poverty level earnings should go up. Will have to wait & see if the house passes the vote on it.

RSPB Loc: New York

I have a feeling that whatever the percentage increase is, it will evaporate once the increased Medicare contribution is applied, as it has for me over the past few years. I end up with about a $2.00 increase per month. This will be more than eaten up by the increased fuel costs for heating next winter.

jaycoffman Loc: San Diego

tcthome wrote:

With inflation SS & the poverty level earnings should go up. Will have to wait & see if the house passes the vote on it.

Actually Congress has no part in the social security (Title II) increase as it's set by law (the Social Security Act). So unless they amend the act (which I predict they won't) it will just be automatic. I'm pretty sure this is the correct computation: A COLA effective for December of the current year is equal to the percentage increase (if any) in the CPI-W from the average for the third quarter of the current year to the average for the third quarter of the last year in which a COLA became effective.

koratcat

flip1948 wrote:

Read an article on AOL earlier today that said due to the level of inflation, the Social Security cost of living allowance is currently on course to hit 5.8% this year. There are still 3 more months before the final figure is determined, but that would be the largest COLA since 1983.

I can remember it being 0% two years in a row within the last several years...so this would be welcome...at least in my house.

But isn't your cost of living going to go up too, probably at least that much? So the best you do is stay even.

Wuligal Loc: Slippery Rock, Pa.

flip1948 wrote:

Read an article on AOL earlier today that said due to the level of inflation, the Social Security cost of living allowance is currently on course to hit 5.8% this year. There are still 3 more months before the final figure is determined, but that would be the largest COLA since 1983.

I can remember it being 0% two years in a row within the last several years...so this would be welcome...at least in my house.

Yes, any increase will be appreciated but don't forget what prompted that increase....inflation, and no matter how fast you run you can never catch up to inflation.

GregS Loc: Central Illinois, USA

flip1948 wrote:

Read an article on AOL earlier today that said due to the level of inflation, the Social Security cost of living allowance is currently on course to hit 5.8% this year. There are still 3 more months before the final figure is determined, but that would be the largest COLA since 1983.

I can remember it being 0% two years in a row within the last several years...so this would be welcome...at least in my house.

Not welcome at all. Inflation will probably eat all the increase in Soc Sec.

jaycoffman Loc: San Diego

No question that the social security COLA does not keep up with real inflation--it tracks the CPI-W that leaves out a few expenses most of us incur. However, the opposite is no COLA which is even worse. So I'll take whatever COLA we get. (Note I'm not on social security but on the CSRS (federal employee) retirement system that uses the same measure as social security.

flip1948 Loc: Hamden, CT

RSPB wrote:

I have a feeling that whatever the percentage increase is, it will evaporate once the increased Medicare contribution is applied, as it has for me over the past few years. I end up with about a $2.00 increase per month. This will be more than eaten up by the increased fuel costs for heating next winter.

Because my only income is Social Security I qualify for the Medicare Savings Plan. This is a Federal program that is administered by the states. Under this plan your Medicare Part B premium is paid for you and one month's premium is refunded. The plan also covers the typical 20% co-pay for any Medicare approved procedure.

My cataract surgery about 4 years ago was completely covered...didn't cost me a penny. I also do not pay any Medicare Part B premium.

If your income is relatively low it is worth checking this out with your state's department of social services.

hookedupin2005 Loc: Northwestern New Mexico

flip1948 wrote:

Read an article on AOL earlier today that said due to the level of inflation, the Social Security cost of living allowance is currently on course to hit 5.8% this year. There are still 3 more months before the final figure is determined, but that would be the largest COLA since 1983.

I can remember it being 0% two years in a row within the last several years...so this would be welcome...at least in my house.

I just read an article in AARP mag, the predicts anywhere from 4.5%, to 6%.

willy6419

SS is a Ponzi scheme that you will never win at, and the taxpayers will keep on getting the shaft, because there is no way to outrun inflation, nor is there a free lunch, because all you 'get' has to be taken from others.

Do some research and discover who wrote it, why and what their political historical affiliation was while 'serving' in FDR's inner circle.

SteveR Loc: Michigan

Inflation is one good way to drain the SS Trust.

LittleBit Loc: St. Louis, MO

SOCIAL SECURITY COLA (2015) - 1.7%
(2016) - Don't know about this year
(2017) - 0.3%
(2018) - 2.0% NOTE: With every increase there was an increase
(2019) - 2.8% in the MEDICARE PREMIUM Cost as well.
(2020) - 1.6 %
(2021) - 1.3%

Just wondering how much my Medicare Premium will increase to this time !

LittleBit Loc: St. Louis, MO

Not all states (like mine in Missouri) participate in this program.

LittleBit Loc: St. Louis, MO

flip1948 wrote:

Because my only income is Social Security I qualif... (show quote)

Not all states, (Missouri being one of them) participate in this program.