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Old 11-19-2022, 05:30 AM   #21
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Folks please confirm my statements below.

The SSA benefit amount now shown on the SSA.gov website is the minimum amount that you will receive at age 62. For someone that turns 62 in 2025, the amount shown today on the benefit statement for age 62 will likely increase each year due to the increase in indexing factors and bend points. How much?

Can you safely predict the increase in indexing factors and bend points can increase your SSA benefits safely around 5% per year until COLA kicks in at age 62?
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Old 11-19-2022, 06:40 AM   #22
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I was looking at Medicare stuff yesterday and noticed this for my DH and for mine. It looks our next checks will have the increase.
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Old 11-19-2022, 07:16 AM   #23
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It's all the extra deductions and taxes and such. The basic monthly SSA benefit before taxes and deductions is in whole dollars. I have no deductions at all. 1.087 times my current monthly payment leaves about 30 cents. My new monthly amount takes that 30 cents and still pays me in whole dollars.
For folks on medicare, the rounding to an even dollar is on the net after the medicare deduction -- my new benefit amount shows $xxxx.90 which results in an even dollar amount after the 2023 medicare deduction of $164.90. For the current year, my SS monthly benefit ends in $0.10 (with medicare being $170.10).
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Old 11-19-2022, 07:44 AM   #24
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Probably due to an increase in the discount rate used. The rate they use is hidden unless you choose the checkbox at the top. The rate they use is for 20 year TIPS, which have risen probably since the last time you ran the tool.

A higher discount rate makes it beneficial to claim earlier, I think.
Thanks, that's it, makes a lot of sense. I'm not changing my strategy, as my primary objective is longevity insurance, but it is interesting to see the change.
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Old 11-19-2022, 07:52 AM   #25
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For folks on medicare, the rounding to an even dollar is on the net after the medicare deduction -- my new benefit amount shows $xxxx.90 which results in an even dollar amount after the 2023 medicare deduction of $164.90. For the current year, my SS monthly benefit ends in $0.10 (with medicare being $170.10).
Actually, sometimes it's not rounded to the dollar.
My SS benefit is currently xxxx.10
Medicare deduction is xxx.10
Income tax withholding is xxx.30
Net deposit amount is xxxx.70
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Old 11-19-2022, 08:02 AM   #26
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Actually, sometimes it's not rounded to the dollar.
My SS benefit is currently xxxx.10
Medicare deduction is xxx.10
Income tax withholding is xxx.30
Net deposit amount is xxxx.70
No fed tax deduction for me but would assume medicare is the only deduction that is used for the rounding (which makes sense since tax withholding can be changed by the recipient).
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Old 11-19-2022, 08:46 AM   #27
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I saw my new SS statement. I'm not retired yet at 58+ yrs old. Hmm .. I only got an increase of 8.3% for my 62 years old number, and 7.8% increase for my 67 years old number.

Glad some of you guys are getting 8.7% - 8.9% - that's awesome.
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Old 11-19-2022, 09:04 AM   #28
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Thanks for the notice... I checked both mine and the DW's... I was surprised to learn (as others have mentioned) that we get our new update payments beginning in December... Is that our Christmas present from the Government?
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Old 11-19-2022, 09:09 AM   #29
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Thanks for the notice... I checked both mine and the DW's... I was surprised to learn that we get our new update payments begining in December... Is that our Christmas present from the Government?
It will be in the check delivered to you in January (they pay in arrears).
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Old 11-19-2022, 09:15 AM   #30
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...
Can you safely predict the increase in indexing factors and bend points can increase your SSA benefits safely around 5% per year until COLA kicks in at age 62?
In the mid to late 1970s, when we also had large inflation, the COLAs were large too, but the average for the first 2 decades of this century is close to 2%. So, basically, if you think inflation will be high for a couple of years, I would go with the 5% as a decent guess, but if the fed tames it to the desired 2% level, I would go a bit lower.
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Old 11-19-2022, 10:08 AM   #31
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Plus, medicare premiums went down to $164.90 for 2023, from 170.10.
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Old 11-19-2022, 12:14 PM   #32
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Thanks for posting this. Even tough I was born in 1961 I got a raise , but based on data here due to wage indexing and not COLA.
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Old 11-19-2022, 12:29 PM   #33
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It will be in the check delivered to you in January (they pay in arrears).
OK, let me get this straight.

I understand that SS pays in arrears, so the check received in January is actually for December.

So the COLA increase is actually applied to the December payment? But in turn folks don’t see that increase until January when they receive their payment?

Kind of makes sense I suppose as it would reduce complaints about not seeing the increase until Feb.

What about the Medicare premium change? That also has to synchronize in order to not cause confusion. I know that DH pays his Medicare payment the month before, so I assume any Medicare withholding from the December SS payment (which you actually receive in Jan) is to cover Jan at the new price.

Then when you get your SS-1099, it’s reporting the payments that are sent to you during the calendar year even though it pays in arrears. I guess that all works out.
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Old 11-19-2022, 12:34 PM   #34
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OK, let me get this straight.

I understand that SS pays in arrears, so the check received in January is actually for December.

So the COLA increase is actually applied to the December payment? But in turn folks don’t see that increase until January when they receive their payment?

Kind of makes sense I suppose as it would reduce complaints about not seeing the increase until Feb.

What about the Medicare premium change? That also has to synchronize in order to not cause confusion. I know that DH pays his Medicare payment the month before, so I assume any Medicare withholding from the December SS payment is to cover Jan at the new price.

Then when you get your SS-1099, it’s reporting the payments that are sent to you during the calendar year even though it pays in arrears. I guess that all works out.
Sounds right. But then actually I have always suspected that SS is even more confused about this payment timing issue than we are.
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Old 11-19-2022, 01:10 PM   #35
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Originally Posted by audreyh1 View Post
OK, let me get this straight.

I understand that SS pays in arrears, so the check received in January is actually for December.

So the COLA increase is actually applied to the December payment? But in turn folks don’t see that increase until January when they receive their payment?

Kind of makes sense I suppose as it would reduce complaints about not seeing the increase until Feb.

What about the Medicare premium change? That also has to synchronize in order to not cause confusion. I know that DH pays his Medicare payment the month before, so I assume any Medicare withholding from the December SS payment is to cover Jan at the new price.

Then when you get your SS-1099, it’s reporting the payments that are sent to you during the calendar year even though it pays in arrears. I guess that all works out.
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Sounds right. But then actually I have always suspected that SS is even more confused about this payment timing issue than we are.
Just when I thought I understood this "stuff"...

You know what, I think I'll just wait and see when and what I get paid what's owed to me. (like if I could do anything about it anyway)
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Old 11-19-2022, 01:25 PM   #36
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Sounds right. But then actually I have always suspected that SS is even more confused about this payment timing issue than we are.
Fortunately when I called SS just after DF passed away, they were very clear that the payment he had received that same month was in arrears and thus wouldn’t be clawed back. The next month payment wouldn’t happen or if it did it would be clawed back. You don’t get paid SS for that last partial month of life.
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Old 11-19-2022, 03:49 PM   #37
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Fortunately when I called SS just after DF passed away, they were very clear that the payment he had received that same month was in arrears and thus wouldn’t be clawed back. The next month payment wouldn’t happen or if it did it would be clawed back. You don’t get paid SS for that last partial month of life.
SS will not claw the final payment back, but some banks do not understand that SS payments are in arrears. When my MIL died in June, the bank took the June deposit and sent it back to the SSA. Then, the SSA had to have the executor mail a letter with estate beneficiary (children) information so that the SSA could mail checks to the beneficiaries.
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Old 11-19-2022, 07:04 PM   #38
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Oddest thing. I download these statements every year (I'm 64, not collecting yet) and for the first time my statement was identical to the 2021 year numbers (with an updated 2022 date). All the others show their usual annual increase. I was annoyed, puzzled, and a bit worried as I was expecting around an 8% increase. Thought I'd ask you guys whether anyone else saw this, but I just downloaded it again and it changed! (from two days ago).


Anyway, I read they do something (update?) on these statements 3 months before your birthday (which for me is Feb. 15, almost three months to the day). I'm good, the updated statement (better than the previous 2022 statement) seems correct. Just thought I'd post this in case anyone else had some weird behavior in the last two days.
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Old 11-19-2022, 10:02 PM   #39
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Oddest thing. I download these statements every year (I'm 64, not collecting yet) and for the first time my statement was identical to the 2021 year numbers (with an updated 2022 date). All the others show their usual annual increase. I was annoyed, puzzled, and a bit worried as I was expecting around an 8% increase. Thought I'd ask you guys whether anyone else saw this, but I just downloaded it again and it changed! (from two days ago).


Anyway, I read they do something (update?) on these statements 3 months before your birthday (which for me is Feb. 15, almost three months to the day). I'm good, the updated statement (better than the previous 2022 statement) seems correct. Just thought I'd post this in case anyone else had some weird behavior in the last two days.
I didn't see the increase a couple weeks ago but now it's there. We're born the same week. Woo hoo now we are talking about something I'll enjoy.
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Old 11-19-2022, 10:55 PM   #40
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My statement is pretty straight forward. DW's is much more fun! Her Part B premium and IRRMA far exceed her SS so we find out how large the check she writes to CMS every month is!

It would be more of a hoot if they'd show her SS as a negative number, but they don't. It's just zero and a note to send them $XXX every month.
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