Social Security COLA

[Bozz10mm]

After years of 0% or .2% cost of living raises, we retired folks are finally getting a whopping 2% increase starting January 1st.

I just received a letter from the SSA showing my new benefit amount. We are getting a 2% raise, but here's the kicker. The cost of medicare increased by....wait for it...exactly the same amount as the increase. For both me and the wife. That is a net increase of exactly 0 over last year. There was no explanation of the medicare increase in the letter

Why do they even bother.

 

[AustinN4]

Quit bitch'in, they could have given you no COLA and still raised your insurance premiums. I think the fact that Medicare is almost broke speaks to the raise. I was just glad it wasn't more than it was. It is still less than regular insurance or O'care for us old guys.

 

[BRD@66]

Wait a minute! Do you mean we have folks old enough to draw SS on this forum???
Unbelievable.

 

[ZX9RCAM]

I presume you are joking, but yes, there are several.
I'm only 3 years away...


ETA: I just checked, yes you were joking.

 

[BRD@66]

I am hardly ever serious but I refuse to use LOL.
Dam young whippersnapper.

 

[AustinN4]

I am hardly ever serious but I refuse to use LOL.

LOL!

 

[navyguy]

It worked the same way the last time there was a meager SS COLA. Increase matched the Medicare increase to the penny. Imagine that.

But I'm not bitchin' It's still the least expensive health alternative for us old, retired folks.

 

[Dred]

Check my math.

Little Johnny's daddy gets $100 from Social Security in 2017. A 2% increase takes it to $102 in 2018.

In 2017, he paid out $10 to Medicare. In 2018, he will pay out $10.20.

So, in 2018, Little Johnny's dad will have an extra $1.80 to spend versus 2017.

Shucks ... looks like 2% of the bigger figure is bigger than 2% of the littler figure. So, Little Johnny's daddy actually won a valuable prize.

 

[AustinN4]

Check my math.

Little Johnny's daddy gets $100 from Social Security in 2017. A 2% increase takes it to $102 in 2018.

In 2017, he paid out $10 to Medicare. In 2018, he will pay out $10.20.

So, in 2018, Little Johnny's dad will have an extra $1.80 to spend versus 2017.

Shucks ... looks like 2% of the bigger figure is bigger than 2% of the littler figure. So, Little Johnny's daddy actually won a valuable prize.

Except that isn't what happened.

The $ amount of the COLA increase is pretty much the amount of the Medicare related increases.

 

[Wiliamr]

That is how the law is written. Called the "Hold harmless" clause. It allows the Medicare premium to go up only equal to the COLA so that supposedly no one getting medicare gets less after a COLA. Sadly what is ignored is the COLA is computed on a biased cost of living scale set up for working people. It is not scaled for retiree costs and incomes.

 

[Bozz10mm]

Check my math.

Little Johnny's daddy gets $100 from Social Security in 2017. A 2% increase takes it to $102 in 2018.

In 2017, he paid out $10 to Medicare. In 2018, he will pay out $12.00

So, in 2018, Little Johnny's dad will have an extra $0.00 to spend versus 2017.

Fixed it for you.

 

[vmax]

SS is a only a supliment to your retirement
You'd better not plan on waiting for the government to hand out raises and prepare for yourself as best you can

 

[oohrah]

Yep. Last year I was still paying my Medicare premiums out of pocket because I hadn't started my SS yet. My premium went to the max, but my wife's did not change becasue she is drawing SS, and Congress gets hate mail when SS payments go down. Now I will get the 2%, but she will get the wash.

 

[AustinN4]

SS is a only a supliment to your retirement
You'd better not plan on waiting for the government to hand out raises and prepare for yourself as best you can

Since this is a bunch of old guys discussing our SS and MC bennies, I am pretty sure we already know that.

 

[karlac]

Hell, now it'll only take three months to pay off a Tall Caffe Mocha at Starbucks with the increase ... were I so inclined.

 

[vmax]

Since this is a bunch of old guys discussing our SS and MC beenies, I am pretty sure we already know that.

I've seen you guys all together at McDonalds drinking coffee in the mornings.

 

[AustinN4]

I've seen you guys all together at McDonalds drinking coffee in the mornings.

http://www.seniordiscounts.com/featureddiscounts/mcdonalds.aspx

 

[Texas42]

I’m not spending my golden years at McDonald’s.

 

[ZX9RCAM]

It's only coffee and soda discount according to the link.

 

[AustinN4]

It's only coffee and soda discount according to the link.

Well, yeah, Vmax said he saw us drinking coffee at McDonalds.