- Joined
- Nov 27, 2014
- Messages
- 9,388
COLA increases do not apply until you are 62.
I will be 62 in January.
However, that seems like it wouldn’t apply to SS disability. What if you became disabled at 50? You wouldn’t get an update for 12 years?
COLA increases do not apply until you are 62.
The news I read about the 8.7% increase said, "The adjustment represents the largest one-time increase since 1981, and the largest experienced by beneficiaries alive today."
So, I was wondering, just how does this compare to 1981? In 1981, the increase was 11.2%. Hmmm, todays increase is about 78% of that in 1981. That gives us some reference.
No. You get COLA increases on SSDI. I don't know about your other question if/when that's applied in the case you cited.I will be 62 in January.
However, that seems like it wouldn’t apply to SS disability. What if you became disabled at 50? You wouldn’t get an update for 12 years?
A consolation prize for those turning 62 in 2023 and missed out on this COLA, the AWI for 2021 has been published at $60,575, increase of 8.89% over 2020, which is 3% better than estimates. To be honest, I'm not sure how much that plays in to benefits, but I know it counts for something.
https://www.ssa.gov/oact/cola/AWI.html
I know people getting ssdi get increases and I believe it is the same cola as regular ss. Whether there is some snag because you haven’t started yet I am not sure
I thought they changed the math on how inflation was calculated. So today's 8.7% using 1981 methods would really be a lot higher.
Why on earth would they ever use 1981 methods in 2022? What we buy has changed. Cell phones and internet service (for example) were not even in the index back then. Using 1981 methods would exclude them today. Does that make any sense? Why not 1900? Then we could include the changes in the price of buggy whips and horse feed and keep the same weights on them. If inflation would measure higher using 1981 methods all that means is that items that were in the index calculation in 1981 have increased faster than items that have been added since then. So what?I thought they changed the math on how inflation was calculated. So today's 8.7% using 1981 methods would really be a lot higher.
Why on earth would they ever use 1981 methods in 2022? What we buy has changed. Cell phones and internet service (for example) were not even in the index back then. Using 1981 methods would exclude them today. Does that make any sense? Why not 1900? Then we could include the changes in the price of buggy whips and horse feed and keep the same weights on them. If inflation would measure higher using 1981 methods all that means is that items that were in the index calculation in 1981 have increased faster than items that have been added since then. So what?
I see this gnashing of teeth over how "they" have changed the calculation over the years all the time (usually in the context of claiming there has been some grand conspiracy to keep the truth away from the people). Of course they have. They have to because what we buy and how much we buy within each category changes over time. It would make no statistical sense to not update methods over time.
Because the suggestion that inflation would be higher using 1981 methods is just as ridiculous. Why would you bring up 1981 except to try to make a point that inflation is underestimated?There is no need to bring up buggy whips, relax. Of course certain items are no longer used but that wasn't my point, not sure why you would make that ridiculous suggestion?
Because the suggestion that inflation would be higher using 1981 methods is just as ridiculous. Why would you bring up 1981 except to try to make a point that inflation is underestimated?
There is no need to bring up buggy whips, relax. Of course certain items are no longer used but that wasn't my point, not sure why you would make that ridiculous suggestion?
Perhaps I'm mistaken but I was under the assumption that certain everyday staples that used to be included are no longer included or are weighted differently in a way that may not be realistic. That's all, there is no conspiracy.
As someone who is at least 7 years from taking SS (maybe more depending on how long I wait to take it), am I correct to think today's increases are raising my expected payout down the road? IOW, can I expect my payout to increase because it will be compounded on today's COLA increases.
There is no need to bring up buggy whips, relax. Of course certain items are no longer used but that wasn't my point, not sure why you would make that ridiculous suggestion?
Perhaps I'm mistaken but I was under the assumption that certain everyday staples that used to be included are no longer included or are weighted differently in a way that may not be realistic. That's all, there is no conspiracy.
Starting in early December, you will be able to securely view and save your Social Security COLA notice online via the Message Center inside my Social Security.
Kind of in an indirect way. Until age 61/62, your historical wages get adjusted based on a wage index. To the extent that inflation drives up wages today's COLA drives up your expected payment. After that your PIA is settled and adjusted by the COLA directly. The transition period around age 61/62 is a little fuzzy.
Sycamore on Bogleheads posted a link that neatly summarizes that “fuzzy” area between ages 60-62. Sucks to have been born in 1961.
https://www.helpwithmysocialsecurity.com/post/social-security-colas-for-ages-60-62
The 2021 Average Wage Index jumped 8.9% which should give the 1961 folks a bump in line with the COLA. Data -> https://www.ssa.gov/oact/cola/AWI.html#Series.
Those of us born in 1960 were worried the 2020 AWI would drop due to COVID and permanently reduce our benefits; thankfully this didn't happen.
Sycamore on Bogleheads posted a link that neatly summarizes that “fuzzy” area between ages 60-62. Sucks to have been born in 1961.
https://www.helpwithmysocialsecurity.com/post/social-security-colas-for-ages-60-62
With 9% inflation it seems as though the bucket has a significant leak. In 8 years it will lose half of its value.
As I understand it, the wage index adjustments stop at age 60. The COLA doesn’t kick in until age 62.
If you were born in 1960, you will miss out on last year’s 5.9% COLA. If you were born in 1961, you will miss out on that PLUS this year’s 8.7% COLA.
Neither cadre will make up for it with wage inflation adjustments because there are none after age 60. Those born in 1960 and 1961 are in a null zone and receive neither.
From the linked article:
‘ If you were born in 1960, meaning you turned 62 this year, you didn't get the 5.9% COLA of last year (which was applied for 2022) because you weren't eligible for benefits. Now you're eligible for benefits based on your earnings record, so you will get the upcoming COLA which will be announced in October and applied next year when you're 63. But you missed the 5.9% COLA last year and didn't get the wage inflation adjustment the year before.
If you were born in 1961, you will take the biggest hit because you missed last year's 5.9% and will miss this year's 8.5% (or whatever it's going to be). So you will be missing out on over 13% indefinitely
This 2-year period – where the Social Security setup causes you to receive neither the wage inflation adjustment nor COLA – happens to everybody. It has always gone under the radar. But what brings this reality to people's attention now is that we're seeing inflation not seen in 40 years. ‘