Lower gas prices means no Social Security increase next year

kgtest said:
From the Wash Post.

https://www.washingtonpost.com/poli...01b47a-7010-11e5-ba14-318f8e87a2fc_story.html


That means 1/5 of the nations population will not see a raise next year. This is only the third time in 40yrs that has happened.

If I were an odds man, I would retire next year knowing I would get an increase the following year.
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Oh pooh!!! I was hoping for at least a little bit of a COLA. :yuk:

Oh well, as you imply there's always next year. We might get a whopper of a COLA then, if gas prices revert to their prior levels. :) Plus, I think that home prices might be rebounding as well.

We have been through this no-COLA business before, I think maybe for the first year or two after I retired in late 2009? Oh how quickly we forget.
 
I barely eked out a COLA this year. Pension requirements state inflation rate must be between 0%- 5% to get a 2% COLA. Last month of the 12 month cycle just barely pushed above 0% at 0.12%. About $125 a month after taxes, so it will be noticeable change in the monthly check.


Sent from my iPad using Tapatalk
 
Yeah, its only happened 3 times in 40 yrs. and I have been lucky enough to endure all 3.:(
 
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!:mad:
 
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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. :rolleyes: 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. :facepalm: 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.
 
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Walt34 said:
To make matters worse, we just got notice that our health insurance is going up ~30%, or $112/month next year, mostly for prescription coverage. Sez who there's no inflation? Liars!:mad:
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My health insurance is going up $19.83/month next year. Also, I don't know yet if I will get caught in the Medicare 50% increase, which I guess is at least another $52.45/month for a total of $72.28/month increase. Well, or more if they increase Medicare cost this year.

I am thinking that 2017 will be better, though.

Another factor that they NEVER seem to include, is a monetary value for extreme happiness in a given year. I have been pretty doggone happy since I retired, and surely that is worth some sort of imputed income in dollars and cents. I'll bet it more than makes up for the increase in health costs. :) As long as they don't start taxing me on the imputed income due to my level of happiness, I'll be fine.
 
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W2R said:
Another factor that they NEVER seem to include, is a monetary value for extreme happiness in a given year.
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Don't give them any ideas. Then they may start taxing us for extreme unhappiness with their policies, practices and laws. I'm sure I couldn't afford that!
 
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Car-Guy said:
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. :rolleyes: 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. :facepalm: 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.
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Well I would personally like to thank you for keeping my premium the same for next year.........if that makes you feel any better.:)
 
But isn't the flip side of this, that inflation has not increased this year. wouldn't that mean the things seniors need (outside of health care cost which always seems to go up) are not going up also?


I know since I drive about 110 miles a day, I'll take the lower gas prices any day.


personally this article makes me say a bunch of prayers that I am not in the position of financial disaster if my ss doesn't go up.
Very sad.
 
Car-Guy said:
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. :rolleyes: 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. :facepalm: 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.
Click to expand...

As I understand it, as soon as there is a COLA on the SS of those already collecting who have Medicare deducted from the SS payments, their Medicare premiums will be increased until they are the same as you (and I, also not collecting SS yet but on Medicare) pay. Our projected increase (which may not happen--legislation has been introduced to prevent it) means we will only temporarily be paying more; all will be equal within a few years.
 
My pension has no COLA, so I'm happy with low inflation. The hit I will take on my small SS will not be major. I think I will be able to struggle along with Medicare increases as opposed to medical insurance I paid before I started Medicare.
 
Walt34 said:
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!:mad:
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Is that a plan D? That's crazy. DH just switched to Humana Walmart Rx and it's only $18 a month for 2016.
 
Bestwifeever said:
As I understand it, as soon as there is a COLA on the SS of those already collecting who have Medicare deducted from the SS payments, their Medicare premiums will be increased until they are the same as you (and I, also not collecting SS yet but on Medicare) pay. Our projected increase (which may not happen--legislation has been introduced to prevent it) means we will only temporarily be paying more; all will be equal within a few years.
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That's my understanding too. In the bigger picture the amounts are very small (a little more than $600 next year per person that's affected) However, it's still unfair no matter what the amount. Let's see if they can "right their wrong" before they take our money, again.
 
For just the third time in 40 years, millions of Social Security recipients, disabled veterans and federal retirees can expect no increase in benefits next year, unwelcome news for more than one-fifth of the nation’s population.
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I don't know why the WaPo thinks this is "unwelcome news". It seems like good news to me. I buy gasoline. I buy other stuff, too. If average prices have stayed about level, that's good news.

I have a modest non-COLA'd pension. I'm better off with
no inflation, no SS increase, and no pension increase than I would be with
some inflation, some SS increase, and no pension increase.

If I were an odds man, I would retire next year knowing I would get an increase the following year.
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That doesn't compute for me.
 
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I really have mixed emotions on the low inflation of late. I really think I am better off with low inflation
with my level of saving and having
no COLA on SS or high interest rates on cash. But my gut likes seeing SS and interest rates go up. Head VS: Gut. Oh well, can't do anything about it.
But I remember the high inflation of 35 years ago and do not want that back.
 
it's not just the COLA on SS, CPI is also used to change IRS benefit limitations
 
Bestwifeever said:
Is that a plan D? That's crazy. DH just switched to Humana Walmart Rx and it's only $18 a month for 2016.
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It's Caremark high option, part of my former employer's plan. I pay 30% of the total premium which is a lot less than many on the board here pay so perhaps I shouldn't moan too loudly. I'm a little fuzzy on whether it is actually a plan D or a substitute for one that qualifies by meeting the legal requirements.

The transition to Medicare was pretty simple for me since I kept the same insurance and it became secondary to Medicare A and B at age 65.
 
Is inflation low? Depends on what you buy. As many noted, dropping fuel prices cancel out inflation of other commodities and services, so if you have an RV you would do well. If you do not drive much, you will not be happy as other items went up 1.9% in the last 12 months.

From a press release of the Bureau of Labor Statistics (BLS):

The energy index fell 4.7 percent in September... The indexes for fuel oil, electricity, and natural gas declined as well...

In contrast to the energy declines, the indexes for food and for all items less food and energy both accelerated in September...

The 18.4 percent decline in the energy index over the past year offset increases in the indexes for food (up 1.6 percent) and all items less food and energy (up 1.9 percent).​

Read the entire article here: Consumer Price Index Summary.
 
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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.

If you were convicted of the felonious and intentional homicide of the worker, you cannot become entitled to monthly benefits or the lump-sum death payment based on the deceased's Social Security earnings record.
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So, tempting though it may be, don't murder your spouse or ex if you're planning on taking spousal benefits.
 
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.
 
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