Social Security COLA 2.8%

[Fedup]

Bad news for me. I've got a non-COLA'd pension. This reminds me that it is shrinking. I was happier with those 1% increases.

You have SS don’t you?

 

[Big_Hitter]

I just realized that today, Oct 11, is the monthly inflation CPI release by the BLS ( I have signed up to receive their emails).

Is the fact that SSA announced the COLAS today not a coincidence? Asked differently - Does the annual SSA COLA announcement always occur on the October release day of the CPI numbers?

-gauss

well august to august was 2.7% so if sept to sept was 2.8% then yes

 

[Independent]

You have SS don’t you?

Yes, the increase in SS just keeps up with the increase in the CPI. So I don't come out ahead there.

At the same time, I get no increase in my pension, so I fall behind there.

I'd be better off with lower inflation.

 

[braumeister]

It's the average of the increases for July, August, and September. Since the number is always released in the middle of the following month, the September figure just became available. That's how the timing works.

 

[W2R]

Bad news for me. I've got a non-COLA'd pension. This reminds me that it is shrinking. I was happier with those 1% increases.

Don't worry! We very well might see them again sooner than we think.

Meanwhile, we have a nice raise in SS, and I really don't see that my own personal cost of living has gone up at all. My projected spending for 2018 is down about $10K from my usual annual spending, due to no unexpected big expenses so far this year.

Party on! I can't imagine what I'll spend my SS COLA on but it is going into the "frivolous spending" bucket for sure. For me, this raise is (slightly) better than dropping my landline was.

I can't help it - - I always love getting a raise! Same was true when I was working.

 

[aaronc879]

That beats the 2.0% I will get going into the last year of my union contract.

 

[Gotadimple]

And, then, don't plan on spending that full 2.8% because your Medicare Part B premium will go up $1.50 in 2019.
https://www.cms.gov/newsroom/press-...019-medicare-parts-b-premiums-and-deductibles

 

[Fedup]

$1.50 is not too bad, $1.50/$134 is still less than 2.80% increase. We still come out ahead.

 

[Dtail]

$1.50 is not too bad, $1.50/$134 is still less than 2.80% increase. We still come out ahead.

Indeed, it is the expected 5% increases through 2025 which could hurt the SS increases those years.

Woohoo for now though.

 

[VanWinkle]

2.8% sounds good to me. I haven’t started taking SS yet. I am waiting to start it due to Obamacare MAGI. If our options in 2019 work out subsidy wise, I may start in January 2019. If that’s not favorable I’ll wait until I’m 65 and starting Medicare. I’ve got 15 months until Medicare!

I am in the same boat Sue J. I have to wait to 01-2021 to claim due to wife still on ACA until 06-2020 and subsidies. I will also be FRA(66) by then.

VW

 

[W2R]

And, then, don't plan on spending that full 2.8% because your Medicare Part B premium will go up $1.50 in 2019.
https://www.cms.gov/newsroom/press-...019-medicare-parts-b-premiums-and-deductibles

Thank you!!! I didn't know about that so it's very helpful to get that information. Now we know exactly what to expect and I entered it into my spreadsheets for 2019.

Hot dog, the more I learn the more real this COLA seems to me.

 

[marko]

And, then, don't plan on spending that full 2.8% because your Medicare Part B premium will go up $1.50 in 2019.
https://www.cms.gov/newsroom/press-...019-medicare-parts-b-premiums-and-deductibles

Worse yet for me, IIRC my Part B will go up $53 a month due to a higher than normal income draw on my part over the past two years.

I seem to have gone over the income threshold.

 

[W2R]

Worse yet for me, IIRC my Part B will go up $53 a month due to a higher than normal income draw on my part over the past two years.

I seem to have gone over the income threshold.

Oh, how crummy! I had that happen one year (when I bought my house). They adjusted it back down automatically the following year when my income went back down. I didn't know how that would be handled, but overall I didn't have to do a thing and it was such a relief to see it lower once again (although I lost my "hold harmless" level of $104.90, but still it went from $187.50 down to $134.00).

Thank goodness it isn't permanent like I had thought!

 

[marko]

Oh, how crummy! I had that happen one year (when I bought my house). They adjusted it back down automatically the following year when my income went back down. I didn't know how that would be handled, but overall I didn't have to do a thing and it was such a relief to see it lower once again (although I lost my "hold harmless" level of $104.90, but still it went from $187.50 down to $134.00).

Thank goodness it isn't permanent like I had thought!

I did not know it was automatic. I was under the impression that I had to go down there with my tax return or something.

 

[W2R]

I did not know it was automatic. I was under the impression that I had to go down there with my tax return or something.

I was concerned about that too, but I didn't do that or even contact them about it and they did everything right on time.

 

[Dtail]

Worse yet for me, IIRC my Part B will go up $53 a month due to a higher than normal income draw on my part over the past two years.

I seem to have gone over the income threshold.

On the glass half full side, you were able to have an income over 170k for one year and it sounds like you are still good.

 

[audreyh1]

On the glass half full side, you were able to have an income over 170k for one year and it sounds like you are still good.

I think she had to withdraw more income to buy the house - whether it was from an IRA or realizing capital gains. So there was an additional Medicare penalty on top of the higher taxes.

 

[Dtail]

I think she had to withdraw more income to buy the house - whether it was from an IRA or realizing capital gains. So there was an additional Medicare penalty on top of the higher taxes.

Ah not so glass half full - you are referring to Marko and not W2R?

 

[Fedup]

On the glass half full side, you were able to have an income over 170k for one year and it sounds like you are still good.

You have to have much more income then $170k. Don’t forget there’s at least $22k deductions for a couple.

 

[Dtail]

You have to have much more income then $170k. Don’t forget there’s at least $22k deductions for a couple.

True true.
My comment is meant to be positive...

 

[W2R]

I'm not a couple!!! And I have never had an AGI over $100K in my life. You married folks, gee....

 

[Independent]

Don't worry! We very well might see them again sooner than we think.

Meanwhile, we have a nice raise in SS, and I really don't see that my own personal cost of living has gone up at all. My projected spending for 2018 is down about $10K from my usual annual spending, due to no unexpected big expenses so far this year.

Party on! I can't imagine what I'll spend my SS COLA on but it is going into the "frivolous spending" bucket for sure. For me, this raise is (slightly) better than dropping my landline was.

I can't help it - - I always love getting a raise! Same was true when I was working.

I've been retired for 11 years. Looking at the trend, it seems to me that our spending has gone up.

A handful of things are directly comparable -- property tax, HO insurance, auto liability, water and sewer. They have all gone up. Other things aren't as easy -- food is up, but are we paying more for the same things, or are we eating different things?

I generally figure the BLS looks at unit prices much more closely than I do. My best guess at my personal inflation rate is their number.

 

[Dtail]

Does anyone know when the SS site gets updated to reflect the 2.8% increase?

 

[Dtail]

I'm not a couple!!! And I have never had an AGI over $100K in my life. You married folks, gee....

Yeah should have realized, but the comment had a female reference and Marko is a male and I know you bought a house a couple of years ago.

 

[Independent]

Does anyone know when the SS site gets updated to reflect the 2.8% increase?

I'm not sure which part of the site you're looking at.

Certain numbers, such as a projected initial benefit if I retire at 62, are based on the wage index, not on the COLA.