Community Chat

[handygal2]

The cost of living increase for Social Security recipients for next year will be a measly 0.03 percent, or an average of $5 a month. And, to add insult to injury, new Medicare recipients will pay $149 a month, compared to the current recipients who pay $104.90 and will see a "small increase." 

Here's the link to a brief article which explains it in more detail:

http://usat.ly/2ep3rvC

ETA: The two additional articles highlighted in blue under "more coverage" are also a worthwhile read.

[nyc1]

I'm a proud American and love this country, however, it's shameful how older people get such a raw deal, whether with Social Security (something they have paid into their entire working life), or medical attention.  Shame shame shame.

[lovestopaint]

Not happy.

I think you know what to do.

[Mmsfoxxie]

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@lovestopaint wrote:

Not happy.

I think you know what to do.

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Yes, I do know what to do but I doubt it's what you are implying.  And if this post is poofed, yours should be as well.

[ms traditional]

when you have such a sluggish economy,  working people have seen their incomes go down, not up, so think of that.  there is little inflation -  so COLA's hardly move up but at least the movement is up when others see movement down.

[nyc1]

Let's also not forget that a lot of older people now rely on SS more than ever since they are making NOTHING in their saving accounts wtih the interst rates being so pathetically low, unlike in the past.   This hits people on fixed incomes especially hard.

[handygal2]

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@nyc1 wrote:

Let's also not forget that a lot of older people now rely on SS more than ever since they are making NOTHING in their saving accounts wtih the interst rates being so pathetically low, unlike in the past.   This hits people on fixed incomes especially hard.

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@nyc1: Absolutely. And this is forcing some of those people to invest their money in the stock market in order to get a higher income, thereby risking part of their principal in the process. This is something they shouldn't feel they have to do at this stage of their lives.

[Mz iMac]

@nyc1

The COLA also affects those on....

disability-Social Security Disability a/k/a/SSDI

SSI - which includes CHILDREN

[chrystaltree]

It is what it is,  SSA was never meant to completely replace our incomes when we retire, they were meant to supplement our savings and investments.  People seem to have forgotten that.  This is why finance experts advise against retiring too early.  We are living longer and healthier now and healthcare costs and medications are high now and will increase in the future.  The risk of out living our retirment money is real and it's scary.  COLA adjustments have been paltry for many years now and often completely offset by Medicare premium increases.  

History of Automatic Cost-Of-Living Adjustments (COLA)

The purpose of the COLA is to ensure that the purchasing power of Social Security and Supplemental Security Income (SSI) benefits is not eroded by inflation. It is based on the percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the third quarter of the last year a COLA was determined to the third quarter of the current year. If there is no increase, there can be no COLA.

The CPI-W is determined by the Bureau of Labor Statistics in the Department of Labor. By law, it is the official measure used by the Social Security Administration to calculate COLAs.

Congress enacted the COLA provision as part of the 1972 Social Security Amendments, and automatic annual COLAs began in 1975. Before that, benefits were increased only when Congress enacted special legislation.

Beginning in 1975, Social Security started automatic annual cost-of-living allowances. The change was enacted by legislation that ties COLAs to the annual increase in the Consumer Price Index (CPI-W).

The change means that inflation no longer drains value from Social Security benefits.