Social Security Benefits Could Get Their Biggest Boost in 40 Years.

[Gumby]

Based on today's CPI-W release, the Social Security COLA for 2023 will be at least 9%.

 

[finnski1]

Based on today's CPI-W release, the Social Security COLA for 2023 will be at least 9%.

Wow. DW and I haven't started benefits yet but I am 63 and she is 66 so we will get these on our next estimates. Maybe inflation will roll over and these will actually be a net plus.

 

[f35phixer]

WOW !!! That's about 190 each for both of us !!!!!!!!!

 

[npage]

Is there any reason or mechanism even to notify SS of retirement early, say 15 or 20 years before eligibility? I've run the calculator with effective date and understand what I would get in future but not sure of original question?

 

[Koolau]

Based on today's CPI-W release, the Social Security COLA for 2023 will be at least 9%.

Sure wish my pension was COLA'd. I've been collecting it since 2005. Not even 1 cent increase in that time. I'm glad I have it, but 9% inflation is gutting it very quickly.

Be sure to hug your COLA'd pension!

 

[aja8888]

Based on today's CPI-W release, the Social Security COLA for 2023 will be at least 9%.

That will be close to $400/month combined for us. Of course we will have to pay taxes on 85% of that and then, of course, the Medicare cost will go up.

Not bad though, as that will offset some of the raising prices we are experiencing.

 

[corn18]

Sure wish my pension was COLA'd. I've been collecting it since 2005. Not even 1 cent increase in that time. I'm glad I have it, but 9% inflation is gutting it very quickly.

Be sure to hug your COLA'd pension!

Just hugged mine. My military pension is indexed to the SS COLA so we got a 6% raise this year and looking at 9% next year. I couldn't have retired if my pension wasn't COLA's and my health care weren't free. Thank you to everyone who takes care of veterans.

 

[Koolau]

Just hugged mine. My military pension is indexed to the SS COLA so we got a 6% raise this year and looking at 9% next year. I couldn't have retired if my pension wasn't COLA's and my health care weren't free. Thank you to everyone who takes care of veterans.

And THANKS for your service, corn.

 

[Gumby]

Sure wish my pension was COLA'd. I've been collecting it since 2005. Not even 1 cent increase in that time. I'm glad I have it, but 9% inflation is gutting it very quickly.

Be sure to hug your COLA'd pension!

We have Diet COLA pensions. The calculation for mine is somewhat convoluted and there is a minimum 2% and maximum 7.5%, but it mostly correlates to a portion of the increase in CPI-W over the prior year (June over June). So this month, I'll get a 6.5% raise. The young wife gets the last Social Security COLA up to a max of 6%, so she'll get a 5.9% raise this month. Not full compensation, but better than nothing.

 

[W2R]

And THANKS for your service, corn.

+1000

 

[Teacher Terry]

My pension has a cola that takes 15 years to hit 5%. After 10 years I am at 3.5% but definitely better than nothing.

 

[TheWizard]

Is there any reason or mechanism even to notify SS of retirement early, say 15 or 20 years before eligibility? I've run the calculator with effective date and understand what I would get in future but not sure of original question?

No reason to notify SS that you have stopped making earned income. Your annual income amounts in their records will be zero henceforth.

Note that SS folks tend to equate "retiring" with "starting to receive SS" which obviously is incorrect for many of us, especially those who ERd before age 62...

 

[Al18]

After 2 years of no Active income, the SS statement will update to show future SS amounts. In my experience, if you have 35 years of payments into SS, there will be a small reduction in future SS estimates.

 

[jldavid47]

That will be close to $400/month combined for us. Of course we will have to pay taxes on 85% of that and then, of course, the Medicare cost will go up.

Not necessarily:

https://www.hhs.gov/about/news/2022...adjusted-incorporated-into-upcoming-2023.html

It's actually possible that Part B costs will decrease in 2023.

 

[Dash man]

Not necessarily:

https://www.hhs.gov/about/news/2022...adjusted-incorporated-into-upcoming-2023.html

It's actually possible that Part B costs will decrease in 2023.

With this inflation, I expect Medicare Part B premiums to increase, but the increase will be reduced by about $10 to make up for this year’s excess charge.

 

[Gumby]

Based on today's CPI-W release, the Social Security COLA for 2023 will be at least 9%.

Based on today' CPI-W release, the 2023 Social Security COLA will be 8.9% if there are no further changes over the next two months (August and September). The CPI-W actually went down from 292.542 to 292.219 between June and July 2022.

 

[CuriousJoe]

Based on today' CPI-W release, the 2023 Social Security COLA will be 8.9% if there are no further changes over the next two months (August and September). The CPI-W actually went down from 292.542 to 292.219 between June and July 2022.

Just a curious question.
If CPI-W goes down (due to deflation?) can SS payment go down as well?

 

[corn18]

Just a curious question.
If CPI-W goes down (due to deflation?) can SS payment go down as well?

I think they have a base of it can't go down. But if the COLA goes up the next year, they subtract the amount that it went down the previous year.

For example:

2022: COLA per CPI-W = -1%, COLA = 0%
2023: COLA per CPI-W= 2%, COLA = 1%

That's my understanding. COLA will never be negative.

 

[Gumby]

I think they have a base of it can't go down. But if the COLA goes up the next year, they subtract the amount that it went down the previous year.

For example:

2022: COLA per CPI-W = -1%, COLA = 0%
2023: COLA per CPI-W= 2%, COLA = 1%

That's my understanding. COLA will never be negative.

I have never seen the subtracting part you describe. This what the Social Security Administration says (emphasis mine):

The COLA is determined on a yearly basis. The
average CPI-W for the third calendar quarter of the
most recent year a COLA was determined is compared
to the average CPI-W for the third calendar quarter of
the current year. Any resulting percentage increase
matches the percentage by which Social Security
benefits beginning for December of the current year
will be increased. SSI payments increase by the
same percentage the following month (January). If the
increase in the CPI-W is at least 0.1 percent, there will
be a COLA. However, if the CPI-W increases by less
than 0.05 percent, or if the CPI-W decreases, there
won’t be a COLA.

Source: https://www.ssa.gov/pubs/EN-05-10526.pdf

 

[corn18]

I have never seen the subtracting part you describe. This what the Social Security Administration says (emphasis mine):



Source: https://www.ssa.gov/pubs/EN-05-10526.pdf

I am going from memory and this may apply to something else.

 

[copyright1997reloaded]

I am going from memory and this may apply to something else.

Perhaps TIPS?

 

[Perryinva]

Our pensions have very low COLA caps, like 2% max, or less. Nothing like the giant COLA that SS could possibly be. Last year’s pension increases totaled under $100/mo. Still much better than nothing. If I were getting SS, (I’m still delaying) our combined COLAs would be over $500/mo. Unreal. Of course, historically, large COLAs are followed by no, or very small COLAs, for reasons cited.

 

[ShokWaveRider]

Please Remember, from what I understand 2023 rates will be based on July, August and September CPI-W, or at least something like that. If these numbers are lower or increase during these months, COLA for 2023 will be affected. I am not sure if it is a direct correlation, but knowing our Gubment, there is probably some complex unnecessary math calculation involved, of course I have no idea if that is true, but I would not put it past them.

 

[Gumby]

Please Remember, from what I understand 2023 rates will be based on July, August and September CPI-W, or at least something like that. If these numbers are lower or increase during these months, COLA for 2023 will be affected. I am not sure if it is a direct correlation, but knowing our Gubment, there is probably some complex unnecessary math calculation involved, of course I have no idea if that is true, but I would not put it past them.

It is a calculation specified by law:

Arithmetical average of 3rd quarter CPI-W for 2022 [July is 292.219)
divided by
Arithmetical average of 3rd quarter CPI-W for 2021 [it was 268.421]
subtract 1, then multiply by one hundred. Rounded to the nearest 0.1%

If there is no change in CPI-W for this August and September, the result would be:
((292.219/268.421)-1)x100= 8.9%

Please knock it off with the governmental conspiracy nonsense.

 

[ShokWaveRider]

It is a calculation specified by law:

Arithmetical average of 3rd quarter CPI-W for 2022 [July is 292.219)
divided by
Arithmetical average of 3rd quarter CPI-W for 2021 [it was 268.421]
subtract 1, then multiply by one hundred. Rounded to the nearest 0.1%

If there is no change in CPI-W for this August and September, the result would be:
((292.219/268.421)-1)x100= 8.9%

Please knock it off with the governmental conspiracy nonsense.

Thanks good info.