Lower gas prices means no Social Security increase next year

[travelover]

I picked up a copy of "Get What's Yours: the Secrets to Maxing Out Your Social Security" at the library today. A fun fact not discussed on the board here so far concerns spousal benefits.



So, tempting though it may be, don't murder your spouse or ex if you're planning on taking spousal benefits.

Dang! the Gummint thinks of everything.

 

[gerntz]

Low gas price = less need/desirability for hybrid or electric car investment cost premium. Net, even more savings for seniors needing a replacement car.

 

[Mulligan]

Even without SS increases (I don't get SS at present anyway), I am really happy that healthcare costs are not galloping away at 7-10%. In the link in post #23 by NW-Bound, I saw medical care commodities inflation at 2.7% (I don't suppose that the same thing as total healthcare). What I have read elsewhere is that healthcare inflation over the last 2 years of Obamacare was 2.4% annually, whatever the actual causes may be. For me, healthcare inflation might be the one issue that could cause problems.

Its all in the details 1982.... My individual healthcare plan of $5k deductible for previous 5 years ranged from $72-$88 a month. This year because of Obamacare it went from $88 to almost $300 for a $6500 deductible. So my Obamacare inflation was triple digit inflation! And from what I read next year from local newspaper the Act is ready to kick me hard in the privates again. BTW- 1982 was a good year!


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[NW-Bound]

...So, tempting though it may be, don't murder your spouse or ex if you're planning on taking spousal benefits.

Yes. Go after the ex's boyfriend or girlfriend. Leave the ex alone.

... my Obamacare inflation was triple digit inflation! And from what I read next year from local newspaper the Act is ready to kick me hard in the privates again...

Yet, if the overall healthcare inflation is not bad, then it means someone else is enjoying enhanced benefits.

My condolences, but in real life not everyone can win.

 

[Mulligan]

Yes. Go after the ex's boyfriend or girlfriend. Leave the ex alone.







Yet, if the overall healthcare inflation is not bad, then it means someone else is enjoying enhanced benefits.



My condolences, but in real life not everyone can win.

As long as I don't get banned from doing it on a semi frequent basis, complaining about it here makes the situation tolerable....Its therapeutic.


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[NW-Bound]

I am not getting SS, but the negative inflation means that my I-bonds which have a 1.2% fixed rate are also paying 0.

A big fat 0! Darn! I looked back, and as recently as in 2011, they were paying 5.83%. I know that the 5.83% is still only 1.2% after inflation, but, but, but it still hurts.

I hope the gas price stays low until next year travel season, so I can take my RV out for a long spin of several months to make up for other stuff that go up in prices. You've got to burn a lot of gas to save money.

If you do not have an RV, crank up the thermostat this winter to enjoy that low energy cost. You've got to spend money to save money, as they say.

 

[MichaelB]

As long as I don't get banned from doing it on a semi frequent basis, complaining about it here makes the situation tolerable....Its therapeutic.

To quote that great American Statesman, "no problemo".

Another way to look at your situation is you enjoyed a nice subsidy for many years, now it's gone. I may soon find myself once again in your situation. The plan I have is dropped (again), the only equivalent option so far will cost 50% more, on a base of $1.4K per month.

 

[Mulligan]

To quote that great American Statesman, "no problemo".

Another way to look at your situation is you enjoyed a nice subsidy for many years, now it's gone. I may soon find myself once again in your situation. The plan I have is dropped (again), the only equivalent option so far will cost 50% more, on a base of $1.4K per month.

I sure hope the premium includes at least 2 people, Michael. I have to admit I knew about 5% as much about insurance pricing as I do today. I had an option to stay on a group plan until SS for $500 a month and $1k deductible. I thought that was outrageous. So I checked in the individual market and think....Why is anyone complaining about buying insurance? Write the $72 monthly check, fully fund an HSA, and tad da..... They are actually paying me to get insurance when figuring in the tax deduction. Well it was fun for 5 years anyways...


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[karen1972]

Its one of those where the no COLA this year is bad news for those too close to the edge, but good for the overall market.. ie trying to factor in 3% inflation over 40+ years of retirement makes the #s crazy high.. so I'm happy about a break in inflation early on in retirement. Add to it that over half of companies were actually planning on giving a pay increase this year (sad that its no longer guaranteed).. means many will have more buying power (ie. good for the market).

I saw lots of posting of people very upset about no COLA and how EVERYTHING had gone up...so went over to BLS and looked up the #s. So gas is down (YEH saves me at least $100/month), Dairy is down, and pork is down while beef and chicken is up (so thats a toss up as I just buy whatevers on sale). Rent is up 2.4% for me which comes out to $20/month, and of course health care (which is unknown right now).. so on the big ticket items I'm probably $80 to the plus side so as long as my insurance doesn't go up by 25% I'll break even. Given I have been assuming 10-15%, we'll see as I may actually be on the plus side.

 

[ziggy29]

I have to wonder what percentage of GDP is in health care, and how much the inflation numbers are weighted in health care costs. I suspect the first number is a lot higher than the second.

 

[jimbee]

I have to wonder what percentage of GDP is in health care, and how much the inflation numbers are weighted in health care costs. I suspect the first number is a lot higher than the second.

According to this site, 17.4% of the U.S. GDP is health spending.

https://www.cms.gov/research-statis...enddata/nationalhealthaccountshistorical.html

 

[mickeyd]

I'm OK with no SS COLA this year. Should help SS stretch out a longer life, as I see it. It has been obvious for a while that it would be >1% this year anyway. I'll not miss the extra bump.

 

[jim584672]

What a bunch of #$%#%$. Rents are up, food is up, medical is up, and we have no inflation!

 

[DEC-1982]

Its all in the details 1982.... My individual healthcare plan of $5k deductible for previous 5 years ranged from $72-$88 a month. This year because of Obamacare it went from $88 to almost $300 for a $6500 deductible. So my Obamacare inflation was triple digit inflation! And from what I read next year from local newspaper the Act is ready to kick me hard in the privates again. BTW- 1982 was a good year!


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Sorry to hear about that; I knew there were winners and losers. Averages are just that - averages.

 

[athena53]

I think DH and I are part of the group that will be picking up the tab for SS recipients who don't get an increase in Part B premiums. Ordinarily, they won't raise Medicare B premiums because of a law that says the net (monthly SS minus Part B) can't go up from year to year.


That doesn't apply to people who are subject to IRMA (Income-Related Monthly Adjustments) to their part B premium, which are based on your Adjusted Gross. Because we're married filing jointly, that includes my income even though I don't qualify for Medicare yet. I'm not looking forward to seeing the Part B increase- another punishment for saving responsibly.

What a bunch of #$%#%$. Rents are up, food is up, medical is up, and we have no inflation!

Ah, but according to one article I read, airfares are down! And seniors fly everywhere right? Oh, well, except for the ones relying totally on SS and the ones who can't stand flying anymore because it's such an endurance contest and the ones who have the time to drive everywhere...;-)

 

[marko]

.
But I remember the high inflation of 35 years ago and do not want that back.

Yeah. But you had to love the 15% CD rates!

 

[Dave J]

Yeah. But you had to love the 15% CD rates!

And I had almost zero in them at that time, raising family, buying home(with 11.9% mortgage rate and lucky it was not higher at the time)( I never paid less than 8% on my mortgages, 1973 thru 1989).Now I have not had a mortgage for about 25 years.

 

[pb4uski]

To make matters worse, we just got notice that our prescription insurance is going up ~30%, or $112/month next year. Sez who there's no inflation? Liars!

But think of what you are saving in gasoline costs.

 

[pb4uski]

...So, tempting though it may be, don't murder your spouse or ex if you're planning on taking spousal benefits.

I beg to differ... I would advise don't get convicted of murdering your spouse or ex if you're planning on taking spousal benefits.

 

[pb4uski]

Looks like I'll be in the 30 percent of Medicare beneficiaries who will be on the hook for a premium increase to help pay for the increasing cost. I'm glad to see the ACA is reducing medical cost so much. And thanks to the wisdom of our lawmakers, I get to help pay the premium increases for the other 70% while they get a free ride. Add insult to injury, I have basically have no choice. Well since I didn't have any choice to pay SS and Medicare taxes all my working years, then why should I have a choice now that I'm retired.

Is this a great country or what.

Is it correct that you could avoid the increase by starting to draw SS before 2016?

I'm not saying that a $50 a month increase in Medicare premiums would be a good reason to start SS before you planned, but certainly a factor to consider and might be a tipping point if you planned to start benefits in the near future anyway.

 

[Nodak]

Gas prices may be down but grocery prices certainly are not.

 

[aaronc879]

Gas prices may be down but grocery prices certainly are not.

You live in a tiny town with one grocery store so there's no competition. They can charge whatever they want. I go to Walmart one mile away and save 10-20% off the every day prices at the local supermarket.

 

[Nodak]

You live in a tiny town with one grocery store so there's no competition. They can charge whatever they want. I go to Walmart one mile away and save 10-20% off the every day prices at the local supermarket.

I make a monthly trip to Walmart but it is a 150 mile round trip. The basics that I buy locally like bread and milk keep going up.

 

[Tadpole]

The comments make me wonder - If things like grocery prices are up when gasoline is down (delivery/transport costs), what will the price of groceries be when/if gasoline prices go back up?

 

[Another Reader]

I live in a competitive grocery market. Multiple grocery chains, including smaller specialty markets, such as Sprouts and Trader Joe's, as well as Walmart and Target. Red bell peppers used to be three for $1.00 on sale. Now they are $0.88 each on sale. Lettuce is $1.69 regular price this season, used to be $0.99. Frozen vegetables that could be snagged for $1.00 at Target last year are $1.82 on sale. Sugar, flour, other baking supplies are all up 20 percent in the last year or so. Eggs, thanks to the California cage law, went from $1.99 to $4.99. Halloween candy, which was a loss leader last year, is not cheap this year.

Boneless, skinless chicken and from what I see pork are still at or close to last year's prices. Meat prices are like oil prices, they vary with supply. Potatoes on sale are priced the same as last year.

Overall, my grocery bills are about 15 to 20 percent higher than last year. And I don't see them coming down anytime soon.

ETA: I just signed up for Social Security that will start next year. Guess I will use the money to stock up on food. That might be followed by guns and ammo, if prices get completely out of control!