SSA COLA Estimates for 2018!

[Travelfreek]

It's Official! 2% increases effective January 2018 for all Social Security recipients as well as Federal and Military Retirees!

[W2R]

Quote:

Originally Posted by Travelfreek It's Official! 2% increases effective January 2018 for all Social Security recipients as well as Federal and Military Retirees!

Hot dog! Thanks

[audreyh1]

It's a little present from the hurricanes......

[Travelfreek]

Here's the link:
https://federalnewsradio.com/benefit...boost-in-2018/

[Amethyst]

You mean, because the storms caused higher costs for gas and food?

I am pretty sure they're going to have to raise my taxes to pay for this year's aid bills.

Quote:

Originally Posted by audreyh1 It's a little present from the hurricanes......

[audreyh1]

Quote:

Originally Posted by Amethyst You mean, because the storms caused higher costs for gas and food? I am pretty sure they're going to have to raise my taxes to pay for this year's aid bills.

Yes, the jump in gas prices in August and September contributed to higher CPI. It will come back down - gas prices in our area have normalized already. But it just happens that certain rates are calculated from certain months that affect a whole year. Then it is given back the next year.

The iBond rate will be a little higher too for the next six months, then correct.

[SecondCor521]

Quote:

Originally Posted by W2R Hot dog! Thanks

Sorry to rain on people's parades, including my Dad's, but I saw this article today saying that most of the increase was going to be swallowed up in increased Medicare premiums:

https://www.forbes.com/sites/janetno.../#750d41e05831

[Travelfreek]

Well, not all of us are on Medicare yet. I have 3 more years to cross that bridge.

Also, I'm thankful there is a COLA period.

[W2R]

Well, gee. I don't have an exact figure for my Medicare next year. It might not go up. Besides, I am determined to be happy about the SS "raise" even if/when my Medicare premium goes up.

[Koolau]

Quote:

Originally Posted by Hermit The Gubmint giveth and the Gubmint taketh away! (Usually more of the latter.)

True, but they only ever give us what they've taken from us (or someone else.) YMMV

[audreyh1]

It looks like this will catch up most folks benefitting from the hold harmless provision. On average monthly increase of $25 will just cover the average Medicare payment of $109 to the expected 2018 $134 rate:

Quote:

Here's why: A so-called "hold harmless" legal provision has protected the majority of retirees from increased Medicare Part B premiums if it would reduce their Social Security benefits. It affects people whose premiums are deducted from their monthly Social Security check. (Note: New Medicare enrollees are not protected by the provision.) Premiums for Part B, which primarily covers doctors' visits and other outpatient care, can change annually, as it is expected to fund about 25 percent of the the program's annual expected per-beneficiary spending. For 2017 the premium was $134, with higher earners paying more. Yet because of the hold harmless provision, the actual amount paid by most Medicare recipients is about $109 monthly, research from the The Senior Citizens League shows. So even if Part B premiums don't rise in 2018, the average retiree will see that extra $25 go toward paying the difference between their monthly Social Security check ($109) and the Part B cost ($134).

Different article than I quotes, but explains the same numbers. https://www.forbes.com/sites/janetno.../#140ba4e55831

[SecondCor521]

Quote:

Originally Posted by SecondCor521 Sorry to rain on people's parades, including my Dad's, but I saw this article today saying that most of the increase was going to be swallowed up in increased Medicare premiums: https://www.forbes.com/sites/janetno.../#750d41e05831

Quote:

Originally Posted by audreyh1 Different article than I quotes, but explains the same numbers. https://www.forbes.com/sites/janetno.../#140ba4e55831

Great minds think alike...

[aja8888]

Maybe my SS increase will cover my increase in home/umbrella/auto policy costs I just received? Hmmm, I just checked and the SS increase will be a bit short...

[audreyh1]

Quote:

Originally Posted by SecondCor521 Great minds think alike...

Oops sorry - didn't realize the link had already been posted. I did want to spell out the numbers though.

[SecondCor521]

Quote:

Originally Posted by audreyh1 Oops sorry - didn't realize the link had already been posted. I did want to spell out the numbers though.

No worries at all audreyh1. Just made me chuckle.

[audreyh1]

I find it very interesting that the hold harmless "break" will essentially close.

Who was it here illustrating in great detail how delaying SS could really penalize you due to the hold harmless provision? It was a good point. But now things will be reset - for now.

The potential SS delay penalty only applies to couples with incomes below $170K (singles $85K), by the way. No hold harmless provision for the higher income folks - they are the ones squeezed while people in the lower 70% might occasionally get a hold harmless break. And the new Medicare recipients also pay full Medicare premium first year.

That income bar is high for the ERs here I suppose - so taking into account the hold harmless break probably makes sense when most folks here consider when to take SS.

[ivinsfan]

Quote:

Originally Posted by audreyh1 I find it very interesting that the hold harmless "break" will essentially close. Who was it here illustrating in great detail how delaying SS could really penalize you due to the hold harmless provision? It was a good point. But now things will be reset - for now. The potential SS delay penalty only applies to couples with incomes below $170K (singles $85K), by the way. No hold harmless provision for the higher income folks - they are the ones squeezed while people in the lower 70% might occasionally get a hold harmless break. And the new Medicare recipients also pay full Medicare premium first year. That income bar is high for the ERs here I suppose - so taking into account the hold harmless break probably makes sense when most folks here consider when to take SS.

The way I see it's still a benefit not a penalty. MY DH is on Medicare but not collecting SS, we have paid higher premiums for 2 years in a row. The hold harmless have not. They are simply now paying the going rate after 2 years of discounts...how can that be called a penalty?

[audreyh1]

Quote:

Originally Posted by ivinsfan The way I see it's still a benefit not a penalty. MY DH is on Medicare but not collecting SS, we have paid higher premiums for 2 years in a row. The hold harmless have not. They are simply now paying the going rate after 2 years of discounts...how can that be called a penalty?

I wasn't calling the folks who were held harmless paying the going rate now a penalty.

I was calling it a penalty for folks who have just started collecting SS or delay collecting SS while others are held harmless.

But if everyone is "caught up" then it's a non-issue.

[ivinsfan]

Quote:

Originally Posted by audreyh1 I wasn't calling the folks who were held harmless paying the going rate now a penalty. I was calling it a penalty for folks who have just started collecting SS or delay collecting SS while others are held harmless. But if everyone is "caught up" then it's a non-issue.

I guess we were saying the same thing
....but eventually everyone who hits 70 will benefit from the hold harmless in the years of no COLA...I'm guessing some of those who see their entire COLA go to increased medicare this year will feel somewhat penalized.

But in fact the ones who were held harmless for the last two don't really "catch up" they have that extra money forever..

[audreyh1]

Quote:

Originally Posted by ivinsfan I guess we were saying the same thing ....but eventually everyone who hits 70 will benefit from the hold harmless in the years of no COLA...I'm guessing some of those who see their entire COLA go to increased medicare this year will feel somewhat penalized. But in fact the ones who were held harmless for the last two don't really "catch up" they have that extra money forever..

That's true. They got a deal for two years that new folks did not.

And it's not everyone that reaches 70. The higher income folks are never held harmless.