Social Security Cola

Discussion in 'Money & Finances' started by Sheldon Scott, Oct 18, 2016.

  1. Tim Burr

    Tim Burr Well-Known Member
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    Just reporting what I read from The annual trustee reports on Social Security and Medicare; they stated 2.2
    Old enough to know people can do anything they want with numbers.:)
    Hoping for the best.
     
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  2. Chrissy Cross

    Chrissy Cross Veteran Member
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    That will mean about $30 for me I think...they'll probably raise Medicare but as long as I'm staying where I am or even a little extra, it's all fine by me.

    Just don't cut anything. :)
     
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  3. Tim Burr

    Tim Burr Well-Known Member
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    My Social Security, Military retirement and VA disability are all tied to the same 'index', so I get whatever they decide on for cola.
    I am with you on it can stay the same, just don't take anymore from me...:eek:
     
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  4. Harry Havens

    Harry Havens Active Member
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    That would have been this projection... from pg 116... https://www.ssa.gov/oact/tr/2017/tr2017.pdf

    On page 117, it also mentions 1.5% on a very similar looking table. When estimating something over such a long period of time, a range of likely assumptions must be considered, which is also stated several times.

    https://www.ssa.gov/cola/

    More specifically... The CPI-W average of July, August and September is compared to the previous year.

    None of which is to dispute the potential for 2.2%, but it would require a serious bout of inflation with 2/13 of the quarter already passed. If gasoline were to jump roughly 60¢ a gallon starting tomorrow and holding on through September, it might achieve 2.2% increase on the Quarter's average over last year.
     
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  5. Harry Havens

    Harry Havens Active Member
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    Whatever your current S.S. payment being received, will stay the same. There is a no harm clause to Medicare increases eroding current S.S.

    I suspect that Medicare will not gobble up all the S.S. increase for 2018. We won't know for sure until November.
     
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  6. Harry Havens

    Harry Havens Active Member
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    Medicare Drug Premiums Expected to Dip in 2018
    Some good news... maybe. As for Part B, I have been reading those currently paying $110 ~ $134 could see premiums in the $121 range for 2018. This is due to bracket changes for the higher income groups. With an early estimate of 1.5% SS cola, there might actually be some gains. However, nothing is official until the fat lady sings or a fat official or somebody else.
     
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  7. Harry Havens

    Harry Havens Active Member
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    The inflation report for July, 2017 has been released.
    However, C.O.L.A is based on CPI-W.
    Note that rounding is DOWN to the nearest tenth of a percent.

    The annual rate of inflation for CPI-W is...
    IF, last year's 3rd quarter trend holds true this 3rd quarter, the August report will show the CPI-W shallowing to 1.5% over previous year, before jumping back up to 1.6% in September.

    Barring some inflationary event... 1.6% seems highly likely, imo. As for Medicare, I have read projections of $121~$125. For those enrolling in Medicare last year, this means a decrease in deductions as well as an increase in S.S.
     
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