Join Early Retirement Today
Reply
 
Thread Tools Display Modes
Old 10-13-2021, 08:11 AM   #81
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jan 2018
Location: Tampa
Posts: 11,229
Still need to see the Medicare Part B increase, which will offset some of the increase.
__________________
TGIM
Dtail is online now   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 10-13-2021, 08:53 AM   #82
Full time employment: Posting here.
 
Join Date: Apr 2005
Posts: 807
Typically excellent and thorough post on this on TipsWatch (and FWIW his guesstimate is $10 a month bump in Medicare premiums):

https://tipswatch.com/2021/10/13/inf...y-cola-at-5-9/
kevink is offline   Reply With Quote
Old 10-13-2021, 10:22 AM   #83
Thinks s/he gets paid by the post
teejayevans's Avatar
 
Join Date: Sep 2006
Posts: 1,691
The national average wage index for 2020 is 55,628.60. The index is 2.83 percent higher than the index for 2019.
teejayevans is offline   Reply With Quote
Old 10-13-2021, 10:25 AM   #84
Thinks s/he gets paid by the post
misanman's Avatar
 
Join Date: Apr 2008
Posts: 1,246
Was hoping this increase would bump me over $4k/month but it falls just short. I probably shouldn't complain.
misanman is online now   Reply With Quote
Old 10-13-2021, 10:29 AM   #85
Thinks s/he gets paid by the post
corn18's Avatar
 
Join Date: Aug 2015
Posts: 1,890
Gotta love the COLA. Even though that means prices are going up, it sure is nice to have a military pension and SS that at least tries to keep up. My pension went has increased 38% since I started collecting it in 2008. Better than seeing my buying power decrease 38%.

Since I am 55 and not collecting SS yet, I modeled the AWI increase as an increase in my PIA of 2.83%. At least until the updated anypia comes out. Does that seem reasonable?
__________________
Consistently sets low goals and fails to achieve them.
corn18 is offline   Reply With Quote
Old 10-13-2021, 12:44 PM   #86
Full time employment: Posting here.
 
Join Date: Dec 2017
Posts: 943
So, a question: Does this mean that my future (5 years from now) SS payment amount can also be adjusted by 5.9% (all other things not changed)? So, if I was supposed to get $3500 at a particular future age, is that amount now $3706, or is it not that simple?
__________________
FIREd at 59.5 on 2019-01-18
camfused is offline   Reply With Quote
Old 10-13-2021, 12:48 PM   #87
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jun 2003
Location: Florida's First Coast
Posts: 7,666
I am wondering when the FED is going to start to counteract the obvious inflation numbers, especially now that SS and the iBonds have done so.
__________________
"Never Argue With a Fool, Onlookers May Not Be Able To Tell the Difference." - Mark Twain
ShokWaveRider is online now   Reply With Quote
Old 10-13-2021, 12:50 PM   #88
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jun 2003
Location: Florida's First Coast
Posts: 7,666
Quote:
Originally Posted by camfused View Post
So, a question: Does this mean that my future (5 years from now) SS payment amount can also be adjusted by 5.9% (all other things not changed)? So, if I was supposed to get $3500 at a particular future age, is that amount now $3706, or is it not that simple?
Depends when that future age is? If it is 4 years away then there are another 3 adjustments to consider.
__________________
"Never Argue With a Fool, Onlookers May Not Be Able To Tell the Difference." - Mark Twain
ShokWaveRider is online now   Reply With Quote
Old 10-13-2021, 01:20 PM   #89
Thinks s/he gets paid by the post
corn18's Avatar
 
Join Date: Aug 2015
Posts: 1,890
Quote:
Originally Posted by camfused View Post
So, a question: Does this mean that my future (5 years from now) SS payment amount can also be adjusted by 5.9% (all other things not changed)? So, if I was supposed to get $3500 at a particular future age, is that amount now $3706, or is it not that simple?
Nope. For folks not collecting yet, the PIA is adjusted per the Average Wage Index (AWI) not the COLA. They are different.
__________________
Consistently sets low goals and fails to achieve them.
corn18 is offline   Reply With Quote
Old 10-13-2021, 02:21 PM   #90
Full time employment: Posting here.
 
Join Date: Aug 2007
Posts: 581
I was just wondering....If a person starts receiving their social security benefit AFTER their full retirement age, is the cola dollar amount increase based on the full retirement amount or the amount that someone is currently receiving (assuming they started collecting after full retirement)? Example: Full retirement age is 65 and social security benefits are $2500 BUT age at which someone starts collecting social security benefits is 69 and amount is now $3000. Would the cola increase be based on $2500 or $3000?
DallasGuy is offline   Reply With Quote
Old 10-13-2021, 02:47 PM   #91
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jan 2018
Location: Tampa
Posts: 11,229
Quote:
Originally Posted by camfused View Post
So, a question: Does this mean that my future (5 years from now) SS payment amount can also be adjusted by 5.9% (all other things not changed)? So, if I was supposed to get $3500 at a particular future age, is that amount now $3706, or is it not that simple?
If you are age 60 and under, then you will continue to get AWI increases (2.83% this year) through age 60.
You will not get the 5.9% in this example, unless you are 61 or older.
__________________
TGIM
Dtail is online now   Reply With Quote
Old 10-13-2021, 02:52 PM   #92
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jan 2018
Location: Tampa
Posts: 11,229
Quote:
Originally Posted by DallasGuy View Post
I was just wondering....If a person starts receiving their social security benefit AFTER their full retirement age, is the cola dollar amount increase based on the full retirement amount or the amount that someone is currently receiving (assuming they started collecting after full retirement)? Example: Full retirement age is 65 and social security benefits are $2500 BUT age at which someone starts collecting social security benefits is 69 and amount is now $3000. Would the cola increase be based on $2500 or $3000?
The CPI increase if over age 60, is based on what one is currently receiving.
It is not connected to the full retirement age.
So if age 63 and you are receiving 30k yearly and the CPI increase is 5%, then your SS payment at age 64 is 31.5k yearly.
__________________
TGIM
Dtail is online now   Reply With Quote
Old 10-13-2021, 04:26 PM   #93
Thinks s/he gets paid by the post
teejayevans's Avatar
 
Join Date: Sep 2006
Posts: 1,691
Quote:
Originally Posted by Dtail View Post
If you are age 60 and under, then you will continue to get AWI increases (2.83% this year) through age 60.
You will not get the 5.9% in this example, unless you are 61 or older.
I think your base SS starts with the AWI at 62, which uses the AWI 2 years earlier, so if turning 62 next year, the 2.83% AWI is the last increase using AWI.
After that your SS will be affected by COLAs.
teejayevans is offline   Reply With Quote
Old 10-13-2021, 04:54 PM   #94
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jan 2018
Location: Tampa
Posts: 11,229
Quote:
Originally Posted by teejayevans View Post
I think your base SS starts with the AWI at 62, which uses the AWI 2 years earlier, so if turning 62 next year, the 2.83% AWI is the last increase using AWI.
After that your SS will be affected by COLAs.
You know after reading my statement to yours, geez your statement is what I meant to say and didn't write it that way.
Okay will blame the Colonoscopy prep diet today.
__________________
TGIM
Dtail is online now   Reply With Quote
Old 10-13-2021, 06:02 PM   #95
Thinks s/he gets paid by the post
 
Join Date: Aug 2012
Posts: 1,824
Quote:
Originally Posted by corn18 View Post
Nope. For folks not collecting yet, the PIA is adjusted per the Average Wage Index (AWI) not the COLA. They are different.

Not quite true. If you are 62 or older you will get the COLA even if you have not started collecting yet. I turned 62 in May and my wife is 65. Both not collecting yet but we will receive this 5.9% cola added to our FRA PIA.


How Will The January 2022 Cost Of Living Adjustment Affect Me?
How will the January 2022 social security cost of living adjustment affect me? I will be 65 in March 2022, still working not collecting benefits.
Thank you, Kevin
Hi. All Social Security cost of living (COLA) increases that occur after a person turns age 62 are added to a their Social Security retirement benefit rate whether or not they are drawing benefits. So, the short answer is that you'll be credited with the COLA increase that's expected next January even if you delay drawing your benefits.



Posted:
Saturday, September 18, 2021 - 09:58
finnski1 is offline   Reply With Quote
Old 10-13-2021, 06:46 PM   #96
Full time employment: Posting here.
 
Join Date: Dec 2017
Posts: 943
^^^ I also turned 62 this year (and plan on taking at 68), so yippee.

So I suppose a couple of months into next year, the MySocialSecurity site will have the new numbers.
__________________
FIREd at 59.5 on 2019-01-18
camfused is offline   Reply With Quote
Old 10-13-2021, 09:12 PM   #97
Thinks s/he gets paid by the post
 
Join Date: Oct 2020
Location: Sugar Land, Texas
Posts: 1,193
Is this permanent moving forward? I am 43 so when time comes. Will I benefit?
F.I.R.E User is offline   Reply With Quote
Old 10-14-2021, 06:19 AM   #98
Recycles dryer sheets
 
Join Date: Jan 2021
Location: lincoln
Posts: 194
probably will coincide with the largest medicare part B increase as well. that will likely eat up any gains that the 6% increase provides.
ERObjd is offline   Reply With Quote
Old 10-14-2021, 06:30 AM   #99
Thinks s/he gets paid by the post
 
Join Date: Jul 2007
Location: St. Louis
Posts: 1,563
Quote:
Originally Posted by misanman View Post
Was hoping this increase would bump me over $4k/month but it falls just short. I probably shouldn't complain.
I did not know it went that high?
FANOFJESUS is offline   Reply With Quote
Old 10-14-2021, 06:51 AM   #100
Recycles dryer sheets
 
Join Date: Jan 2021
Location: lincoln
Posts: 194
according to ARP max SS is $3,895 for someone who files at age 70.granted they would have to have worked at least 35 years above the 100k per year income levels, currently it has to be above 142K per year. so the max SS club is a small one only about 6% of SS recipients max it out. It does not go above 4K per month but could if the % of increase is enough.
ERObjd is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Annual Social Security adjustment explanade FIRE and Money 7 12-29-2019 11:19 AM
Social Security Cost-of-Living Adjustment for 2020 Is 1.6% REWahoo FIRE and Money 58 10-19-2019 04:25 PM
Decades charts - SP500, PE10, inflation Lsbcal FIRE and Money 15 01-11-2014 03:10 PM
401k inflation adjustment for 2007 maddythebeagle FIRE and Money 0 07-18-2006 11:52 AM
SWR Inflation Adjustment astroboy FIRE and Money 29 01-08-2005 11:18 AM

» Quick Links

 
All times are GMT -6. The time now is 11:59 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.