MissMolly
Thinks s/he gets paid by the post
- Joined
- Jun 9, 2010
- Messages
- 2,145
If you're not yet 62, this has no impact on your expected benefit, right?
Correct. COLAs do not apply until the year you turn 62.
If you're not yet 62, this has no impact on your expected benefit, right?
But if I am 65 planning to wait until 70 I will be ok right?
I recently got a "truckette", a Ford Maverick Hybrid. I've been averaging 42 MPG so far.
As a result, my F150 isn't being used as much.
Correct. COLAs do not apply until the year you turn 62.
This will be tempered by the wage increases that have happened and will happen due to workers wanting more to cover inflation.
+1
IIRC, the maximum SS benefit that is not taxable is NOT indexed to inflation. So, more people will be above that, paying in more taxes.
It's not so much that they are making an assumption as it is a requirement of current law; the SS "haircut" is the default. When the trust fund is exhausted SS payouts will be limited to current SS tax receipts.
I would consider thinking that the current law will be changed before this happens to be more of an assumption.
This is incorrect. The COLAs do not apply until the year you turn 62.
I would gladly give up any and all of a SS increase to see low or zero percent inflation.
One more point on when to take SS. If you start at 62, after a period of time you are locked in to that decision. If you delay taking SS, you can always turn it on later, at 63, or 65 and 4 months, or 67 and two months. It's not a binary choice. There are at least 95 more points in the future where you can change your mind and start taking SS.
I'm in the camp that it can get pretty ugly.
I think there is a smoldering but building resentment of the younger generations toward the baby boomers. They are seeing the country deteriorate across a spectrum of areas and see a life in front of them that is considerably worse than their parents. A country that has enormous debt, a country where many of them are being priced out of being owners (e.g. housing), where they just can't seem to get ahead. I'm not here to argue that perception is universal (it certainly isn't), nor absolutely accurate...but I do believe it is a growing perception and feeling.
I believe that is why some of them have "dropped out" and so many places are finding it difficult to hire. WHY work, what's the point?
So, it might be interesting when come January and beyond when "boomers" get their 8 or 9 or 10 or more % benefit uplift when many of the younger have minimum wage jobs (or even worse if a recession comes no job). When they see the reigns of power controlled by boomers still hanging on.
+1. There are several posts in this thread that are inaccurate as I understand SS. BOTH current and future (yet to file) SS beneficiaries all benefit in a similar way with each annual SS COL adjustment. I haven’t filed yet and I’ve watched my estimated benefits go up every year despite not working for 11 years.Maybe we are getting stuck on semantics here, but inflation absolutely has an effect on ones earned benefit.
Before age 60, as the national wage index increases so do the inflation factors that are applied to every year of your past earnings.
Technically, the only year that really matters is for the year you turn age 60 -- when your PIA is calculated. But if the wage index is increasing every year leading up to this point, than that would tend to favor a larger initial benefit.
I haven't had earned income in about 10 years, but my forecasted SS benefit has been increasing each year due to this effect.
Gumby's post (#31 above) gets into some of the details with references.
-gauss
Excuse me? Why work what's the point and somehow it's blamed on the Boomers SS increases.
Lot's of Boomers are able-bodied and seem quite content to sit home and collect their SS benefits instead, said benefits being paid for by those who are currently working.
(I'm in the Boomer age group, just playing devil's advocate here.)
Lot's of Boomers are able-bodied and seem quite content to sit home and collect their SS benefits instead, said benefits being paid for by those who are currently working.
(I'm in the Boomer age group, just playing devil's advocate here.)
Wait I think this could be the next Washington Post financial article..Boomers blame yourself when your favorite store closes, it's your fault!
Excuse me? Why work what's the point and somehow it's blamed on the Boomers SS increases.
Based on today's CPI numbers, the 2023 Social Security COLA will be at least 7.3%
I'm thrilled to hear that. I'm sure that will be more than the annual Medicare rate increase and the income taxes I have to pay on most of the SS I receive.