5.9% Adjustments Coming

[Michael G.]

Whoo Whoo, you're getting a raise Village people.


Social Security Cost-of-Living Adjustment for 2022 Is 5.9% - Clark Howard (https://clark.com/personal-finance-credit/investing-retirement/social-security-cola-2022/?utm_source=Clark.com&utm_campaign=f2a5d71246-Clark_Daily_Newsletter&utm_medium=email&utm_term=0_afa92deb83-f2a5d71246-71587705)

[Kenswing]

Whoo Whoo, you're getting a raise Village people.


Social Security Cost-of-Living Adjustment for 2022 Is 5.9% - Clark Howard (https://clark.com/personal-finance-credit/investing-retirement/social-security-cola-2022/?utm_source=Clark.com&utm_campaign=f2a5d71246-Clark_Daily_Newsletter&utm_medium=email&utm_term=0_afa92deb83-f2a5d71246-71587705)Now it's sure to run out of money by the time I'm eligible to collect. :1rotfl:

[GrumpyOldMan]

I wish they would do that on a sliding scale and weigh it at the bottom income levels. We don't need it, just like we didn't need the COVID checks. I feel for those less fortunate than me, and would like to see them get more.

[Escape Artist]

I wish they would do that on a sliding scale and weigh it at the bottom income levels. We don't need it, just like we didn't need the COVID checks. I feel for those less fortunate than me, and would like to see them get more.

I thought the Covid/Stimulus payments were income related? Well, maybe not the first one but the other ones were. That's why my sister and hubby didn't get one - too wealthy! :icon_wink:

[Escape Artist]

Whoo Whoo, you're getting a raise Village people.


Social Security Cost-of-Living Adjustment for 2022 Is 5.9% - Clark Howard (https://clark.com/personal-finance-credit/investing-retirement/social-security-cola-2022/?utm_source=Clark.com&utm_campaign=f2a5d71246-Clark_Daily_Newsletter&utm_medium=email&utm_term=0_afa92deb83-f2a5d71246-71587705)

Hmmm, that must also mean they know inflation is here to stay despite their claims it's "transitory". What about those who are not eligible for S.S. yet and are in that gray area of still being employed, maybe part time, as they taper off towards retirement?

On the face of it , it looks like it will help seniors but raising wages/payments just increases the wage-price spiral (prices continue to go up). Maybe the govt. figures they are doling out more now, but they will be keeping an eye on everyone's bank/retirement accounts, savings, investments, etc. and they'll get it back somehow. :rolleyes:

[Dana1963]

Just another reason for business to raise prices and discreetly take it from us.

[Garywt]

I thought the Covid/Stimulus payments were income related? Well, maybe not the first one but the other ones were. That's why my sister and hubby didn't get one - too wealthy! :icon_wink:
To a point they were, based on yearly income. We never received any of the stimulus checks but my kids did so that was best.

[jdulej]

Now it's sure to run out of money by the time I'm eligible to collect. :1rotfl:

Don't worry, it's an easy fix. Congress just needs to grow a set and do their job.

[Michael G.]

Maybe this would be a ideal time to thank the people that are working and paying in so we can enjoy a better retirement.

[Kenswing]

Maybe this would be a ideal time to thank the people that are working and paying in so we can enjoy a better retirement.
Why would we want to thank them? I paid into the system for over 40 years. I think I'll thank myself.

[billethkid]

Why would we want to thank them? I paid into the system for over 40 years. I think I'll thank myself.

Ditto.
I paid for mine.
The system would be more stable if only those who contributed were able to draw from it.

Create some other venue for all the non contributor payees.

[Michael G.]

The government talks about SS running out of funds.
Gezzz How that must make people feel warm and fuzzy paying into a investment every pay check and wonder why if these no money left.

[manaboutown]

Well my monthly increase won't even fill up my gas tank at today's prices - and that is BEFORE I pay additional income tax on it. Big whoop!

More expensive food, rents boost U.S. inflation; further increases anticipated (https://finance.yahoo.com/news/u-consumer-prices-increase-solidly-123906472.html)

[Topspinmo]

I wish they would do that on a sliding scale and weigh it at the bottom income levels. We don't need it, just like we didn't need the COVID checks. I feel for those less fortunate than me, and would like to see them get more.

can always give it back or don’t take SS. It’s not against law.

[Topspinmo]

Whoo Whoo, you're getting a raise Village people.


Social Security Cost-of-Living Adjustment for 2022 Is 5.9% - Clark Howard (https://clark.com/personal-finance-credit/investing-retirement/social-security-cola-2022/?utm_source=Clark.com&utm_campaign=f2a5d71246-Clark_Daily_Newsletter&utm_medium=email&utm_term=0_afa92deb83-f2a5d71246-71587705)


I wouldn’t count on it.

[kansasr]

And Medicare premiums are expected to jump 6.7%, so don't spend you SS $$$ yet.

[SkBlogW]

Whoo Whoo, you're getting a raise Village people.


Social Security Cost-of-Living Adjustment for 2022 Is 5.9% - Clark Howard (https://clark.com/personal-finance-credit/investing-retirement/social-security-cola-2022/?utm_source=Clark.com&utm_campaign=f2a5d71246-Clark_Daily_Newsletter&utm_medium=email&utm_term=0_afa92deb83-f2a5d71246-71587705)

Not really

Rental cars +43% over last Sept
Gas 42%
Used cars 24%
Bacon 19%
Hotels 18%
Beef 18%
Pork 13%
Eggs 13%
TVs 13%
Kids' shoes 12%
Furniture 11%
New cars 9%
Chicken 8%
Apples 8%
Restaurant prices: 5%
Electricity 5%
Rent 2.9%

https://www.bls.gov/news.release/pdf/cpi.pdf

I'm sure that 5.9% raise will help out with the heating bills

AP: U.S. government expects households to see heating bills jump as much as 54% compared to last winter

Some moron actually wrote this headline:

America Needs Higher, Longer-Lasting Inflation

[Stu from NYC]

Don't worry, it's an easy fix. Congress just needs to grow a set and do their job.

If they thought they worked for us they would have fixed it years ago.

[Koapaka]

I thought the Covid/Stimulus payments were income related? Well, maybe not the first one but the other ones were. That's why my sister and hubby didn't get one - too wealthy! :icon_wink:

They all were income related, we did not get a dime (but had already decided that if we had gotten one we were going to give it to our house cleaning lady because both she and her husband had lost all their work initially.) Glad we did not say anything to her about it, because got nothing.

[Koapaka]

Now it's sure to run out of money by the time I'm eligible to collect. :1rotfl:

Oh please, they will just print more! Won't cost a dime! They got that all worked out already....:1rotfl::1rotfl::1rotfl::1rotfl::1rotfl ::1rotfl:

[rustyp]

And Medicare premiums are expected to jump 6.7%, so don't spend you SS $$$ yet.

And the point is ???

The average social security check in USA is $1400/month
The medicare premium for 2021 was $148/month

Thus the average raises will be:
- Social security +$84/month
- Max Medicare premium will be +$10/month

[Koapaka]

Ditto.
I paid for mine.
The system would be more stable if only those who contributed were able to draw from it.

Create some other venue for all the non contributor payees.

THIS!!!!!!! Hit the nail on the head. Do you realize every time we hear about all the shooting deaths in Chicago over the last weekend how many daddy's babies mommas are lined up at the SS office claiming for the little darlings????

Don't have to be married to collect for kiddo.

I actually know of a guy who is in his 70's, still out fathering kids with his girlfriends (wife died, he likes them much younger now) and every time one of his little lady friends gets knocked up and the kid is born, HIS SS payments increase for another dependent! :faint:

When he dies, guess who will all be lining up to start their claim......

[Escape Artist]

THIS!!!!!!! Hit the nail on the head. Do you realize every time we hear about all the shooting deaths in Chicago over the last weekend how many daddy's babies mommas are lined up at the SS office claiming for the little darlings????

Don't have to be married to collect for kiddo.

I actually know of a guy who is in his 70's, still out fathering kids with his girlfriends (wife died, he likes them much younger now) and every time one of his little lady friends gets knocked up and the kid is born, HIS SS payments increase for another dependent! :faint:

When he dies, guess who will all be lining up to start their claim......

I think you mean SSI?

[kkingston57]

Well my monthly increase won't even fill up my gas tank at today's prices - and that is BEFORE I pay additional income tax on it. Big whoop!

More expensive food, rents boost U.S. inflation; further increases anticipated (https://finance.yahoo.com/news/u-consumer-prices-increase-solidly-123906472.html)

Must have a big tank.

Since moving to TV(and retiring) wife and I go through about 40 gallons a month, including the golf cart. Prior to pandemic paid about $2.50-$2.75 a gallon. This is a gas increase of $10 - $11 a month.

[Koapaka]

I think you mean SSI?

Do Children Get a Deceased Parent's Social Security? (https://www.aarp.org/retirement/social-security/questions-answers/survivor-benefits-for-children.html)

[Garywt]

Hope it is for my disability as well. Last 2 years I got 1.6% and 1.3%. Not paying anything for insurance as I get that through my pension.

[Rango]

I wish they would do that on a sliding scale and weigh it at the bottom income levels. We don't need it, just like we didn't need the COVID checks. I feel for those less fortunate than me, and would like to see them get more.

If you don’t need it, donate to charity

[MrFlorida]

We worked our whole lives and paid into the system, not like the free loaders that get handouts and never paid a dime.... So, when they say SS is running out of money, lets stop the free giveaways first.

[manaboutown]

And the point is ???

The average social security check in USA is $1400/month
The medicare premium for 2021 was $148/month

Thus the average raises will be:
- Social security +$84/month
- Max Medicare premium will be +$10/month

Many folks pay more than $148/mo. Some are paying an additional $504.90/mo.

It is like your income is high enough you must pay $15 for a $5 hamburger at Mickey D's. Just another confiscatory tax.

[Vikingjunior]

I can’t wait to see what kind of increase members of Congress get.

[EdFNJ]

I wouldn’t count on it. Why, you think it was just a tease and they will say "nynah nynah nynah fooled you" come January? Kinda doubt that.

Press Release | Press Office | SSA (https://www.ssa.gov/news/press/releases/2021/#10-2021-2)

Social Security and Supplemental Security Income (SSI) benefits for approximately 70 million Americans will increase 5.9 percent in 2022, the Social Security Administration announced today.

[tophcfa]

The criminals in our government has been punishing savers for hundreds of billions of dollars of their suppression of interest rates. It’s the least They can do

You got that right. It used to be that interest rates were set so that savers earned a real rate of return (rates were set above the inflation rate). It was nice when savings (responsibility) was encouraged and rewarded. Now taking out massive levels of unsustainable debt are encouraged, and our government is the leading culprit of this irresponsible behavior.

[EdFNJ]

They all were income related, we did not get a dime (but had already decided that if we had gotten one we were going to give it to our house cleaning lady because both she and her husband had lost all their work initially.) Glad we did not say anything to her about it, because got nothing. Yea, it's tough out there. You should have just gifted your "house cleaning lady" a check if you felt so bad for her. My "house keeping lady" has been with me for 53 years, she gets it all anyway so I don't feel bad for her. :D

[Koapaka]

Yea, it's tough out there. You should have just gifted your "house cleaning lady" a check if you felt so bad for her. My "house keeping lady" has been with me for 53 years, she gets it all anyway so I don't feel bad for her. :D


Actually, we kinda did...but didn't. We did give her a $500 Kroger card, and we kept her coming as long as she felt safe coming to clean. The conversation just turned to "ok...IF we get a check, what should we do with it"....ya know, kinda like buying that Lottery ticket and dreaming about all the stuff you will do with your winnings.

[manaboutown]

Actually, we kinda did...but didn't. We did give her a $500 Kroger card, and we kept her coming as long as she felt safe coming to clean. The conversation just turned to "ok...IF we get a check, what should we do with it"....ya know, kinda like buying that Lottery ticket and dreaming about all the stuff you will do with your winnings.

Years ago my neighbor gave their cleaning lady a Mercedes. Ok, it was a small one but still...

[Topspinmo]

THIS!!!!!!! Hit the nail on the head. Do you realize every time we hear about all the shooting deaths in Chicago over the last weekend how many daddy's babies mommas are lined up at the SS office claiming for the little darlings????

Don't have to be married to collect for kiddo.

I actually know of a guy who is in his 70's, still out fathering kids with his girlfriends (wife died, he likes them much younger now) and every time one of his little lady friends gets knocked up and the kid is born, HIS SS payments increase for another dependent! :faint:

When he dies, guess who will all be lining up to start their claim......

I know guy that collected SSI on his own kid that he never supported till mother died of cancer.

[RVJim]

Ditto.
I paid for mine.
The system would be more stable if only those who contributed were able to draw from it.

Create some other venue for all the non contributor payees.

Handouts, handouts, handouts .. everyone wants THEIR handout but doesn’t want anyone else to get one.

[DaleDivine]

I can’t wait to see what kind of increase members of Congress get.

Theirs will probably be a minimum of 10%...
:ohdear::ohdear:

[Luggage]

Feel free to send me your excess. There are at least 50% of social security recipients living strickling on that as their income. In reality I would have to agree with you that it would really be nice to give a little bit more at the bottom. But of course our Congress takes that into effect with the tax code by grabbing it back and Medicare goes up every year taking most of the raise. Getting back to the checks that everyone had gotten last year, it would have made a lot of sense to proportionally give more to lower incomes ie $2,000 to those getting under $50,000 in income versus everyone getting those $1,200 checks equally. Oh well

[Luggage]

I really have to laugh about 5.9%. firstly the raise is always come a year after we've been hit with inflation, so we're automatically behind by that 5.9%. gas is up about a dollar milk is also up about a dollar I insurance rate for my home is up $500, those few things take up the entire social security raise leaving me probably with a negative one or two thousand dollars for the year coming up. I know a lot of people made money in the stock market but I bet you have the people on social security have nothing in the stock market

[Luggage]

Actually there were some very good reasons to have inflation, it just depends on how high you want to consider good. I bet you love that your house is going up 50% this year in value. That's definitely one of the reasons economist believe in inflation. Compare our economy to Japan's where they've actually had a negative inflationary growth for over 10 years

[Luggage]

They were very barely come related, this isn't the whole story but I know that those over 150,000 got nothing. As in my other post it would have been nice to have been inversely proportional to your income, just like income taxes are proportional the other way, it would have been nice to have five or six income brackets ie those under $25,000 got the most, then 50,000 and 75 then 100 etc got proportionally less. But certain Congress people have no common sense which is why all I can do to get elected and get money from us

I thought the Covid/Stimulus payments were income related? Well, maybe not the first one but the other ones were. That's why my sister and hubby didn't get one - too wealthy! :icon_wink:

[rustyp]

Many folks pay more than $148/mo. Some are paying an additional $504.90/mo.

It is like your income is high enough you must pay $15 for a $5 hamburger at Mickey D's. Just another confiscatory tax.

And the point is ???

The average social security check in USA is $1400/month
The medicare premium for 2021 was $148/month

Thus the average raises will be:
- Social security +$84/month
- Max Medicare premium will be +$10/month

Likewise many folks collect more than $1400/month SSI.
FYI Your reported income needs to be $500,000 to have a Medicare premium of $504.90 and that is the total premium not additional. Thus their premium is +$356.40 higher than the average Joe. Oh I can't imagine how those $500K AGI seniors are making ends meet.

[thevillages2013]

Why would we want to thank them? I paid into the system for over 40 years. I think I'll thank myself.

For the majority of my life I have paid 15.3 % right off the top. I think I have covered mine and a few others

[Dantes]

Don’t worry the annul Medicare increase will take care of any increase lol

[Chase219]

Why gas and everything else goes up by 20 % where good what a bunch of bull ****. We are screwed. Sumpter country look at the tax hikes gone up every year for the past 3 years.

[Annarachel]

Give it to some one who needs it then you can do that.

[Judith7604]

I wish they would do that on a sliding scale and weigh it at the bottom income levels. We don't need it, just like we didn't need the COVID checks. I feel for those less fortunate than me, and would like to see them get more.

For those that don’t need the money set up a fund at your local school to buy shoes and clothing, children are so excited to receive something new

[Mulliganguy]

[QUOTE=MichaG.;2016977]Whoo Whoo, you're getting a raise Village people.

Don’t get to excited. Medicare will take most of it.

[coconutmama]

Ditto.
I paid for mine.
The system would be more stable if only those who contributed were able to draw from it.

Create some other venue for all the non contributor payees.

Totally agree.
Plus there should be no ceiling on income levels paying into the program. Why stop at $137,700? Presently the lower income folks get the SS tax taken from their income. Yet those who can afford it the most do not. This change would take care of any shortfall easily

[charlieo1126@gmail.com]

I thought I would read a few people complaining on here about the raise but OMG almost all of you are upset , seems the only perfect solutions are only in the minds of talk of the villages people , try to have a nice day today , who knows maybe gas will go down 5 cents

[Lindaws]

Raise? Medicare will take the raise.

[JayLeininger]

Originally, the SS Act was designed to have workers give the government money while they worked, then have it returned when they retire. Due to government mis-management of the contributions and benefits, the fund is going bankrupt.

Both individual contributions and benefits already disproportionately benefit lower income workers.

[Vermilion Villager]

Why would we want to thank them? I paid into the system for over 40 years. I think I'll thank myself.
Go to the Social Security website and see how much YOU actually contributed to Social Security....then take your monthly annuity and total the amount you've taken to date.

I'm pretty sure you've taken a whole lot more than you put it

[Hans53]

this will be eaten up by increases in medicare and supplements.

[DAVES]

I wish they would do that on a sliding scale and weigh it at the bottom income levels. We don't need it, just like we didn't need the COVID checks. I feel for those less fortunate than me, and would like to see them get more.

People do not seem to understand. Social Security, first of all is a graduated tax. People who earn more pay more per increasing benefit. Close enough numbers, social security was a 7% tax for people who worked for someone else. Your employer paid another 7% for you-essentially tax free income. I was self employed and paid 13%.

Many think there is an account, a pile of money that you paid in. I paid in for 45 years.
That is not the case, they use money coming in to pay the money going out. I did not have a choice. If, we think of social security as insurance, I/we who earned middle class income or more could have bought the same coverage as private insurance for less.

That covid check, first of all I did not qualify. I agree it was ridiculous. Retired people being paid for inability to work due to covid. Truth had I qualified for a check, I would have taken it and cashed it.

[OhioBuckeye]

Don’t worry the annul Medicare increase will take care of any increase lol

You’re exactly right!

[DAVES]

Originally, the SS Act was designed to have workers give the government money while they worked, then have it returned when they retire. Due to government mis-management of the contributions and benefits, the fund is going bankrupt.

Both individual contributions and benefits already disproportionately benefit lower income workers.

There is no shortage of excuses. If, I recall from my reading, when first passed there were 14 workers for every person collecting today it is 2.

Mis-management? The ten year treasury is now paying 1.5%. The CPI consumer price index is 5.8%. Social security is buying treasuries. Buying your own debt.

[DonnaNi4os]

I wish they would do that on a sliding scale and weigh it at the bottom income levels. We don't need it, just like we didn't need the COVID checks. I feel for those less fortunate than me, and would like to see them get more.

That is wonderful for you. Other seniors are not always as fortunate. Perhaps donating that money is in your plans. It would be a wonderful thing to do as so many people are hungry and hurting at this time.

[biker1]

Depends on the size of your SS benefit. Not everyone gets the same benefit. And not everyone pays the same to Medicare.

Raise? Medicare will take the raise.

[LateBoomer]

this is of course due to a 20 year high in inflation. I think it's going to hasten bankruptcy of the system, however.

[Jensor17]

I dont understand why government does anything anymore. For years there's no COLA then comes a whopper. .
Some folks eek by on $300 a month SS and rely on the largesse of relatives or neighborhood groups like Elks or moose lodge. The ones who get $4500 a month SS PAYMENTS MAKE ME QUESTION THE WHOLE SHEBANG. I know a gal whose husband passed and she had infant twins, and collects $1500 a month + 1500 +1500 survivor benefits. All i got when my husband passed was $225 one -time SS check SINCE I WAS COLLECTING MY OWN SS benefit.
Where is the logic in no benefits and. Overpaying on others ?

[Curtisbwp]

Two years (in the past) President Obama adjusted the COLA to 0%

[biker1]

No, the system isn’t going to go bankrupt. The trust fund, essentially the accumulated difference between what what paid in as tax and what was paid out as benefits plus interest, will be depleted in the future as we start to draw down the trust fund. At that point, what is paid in will not be sufficient to cover the benefits being paid out and the benefits will be reduced by some percentage, perhaps around 25%. This issue is technically very easy to solve but it is still a political problem. Stay tuned ....

this is of course due to a 20 year high in inflation. I think it's going to hasten bankruptcy of the system, however.

[rustyp]

[QUOTE=MichaG.;2016977]Whoo Whoo, you're getting a raise Village people.

Don’t get to excited. Medicare will take most of it.

Raise? Medicare will take the raise.

this will be eaten up by increases in medicare and supplements.

You’re exactly right!

Depends on the size of your SS benefit. Not everyone gets the same benefit. And not everyone pays the same to Medicare.

Correct biker. If your income is $88K or less and your monthly SS check was les than $170/month (not likely since that equals a yearly benefit of only $2040) than the Medicare increase will eat up the new SS raise.

People please stop comparing the 5.9% raise SS increase to the Medicare 6.7% premium increase. That is an apples and oranges comparison.

[rustyp]

Two years (in the past) President Obama adjusted the COLA to 0%

SS increases are based upon an automatic COLA calculation since its inception. Today's method utilizes the CPI-W index method which was instituted June 1975.

[jdulej]

Two years (in the past) President Obama adjusted the COLA to 0%

If it was 2 years ago it was not Obama

[tvbound]

I can’t wait to see what kind of increase members of Congress get.
Theirs will probably be a minimum of 10%...


Salaries and Benefits of US Congress Members (/salaries-and-benefits-of-congress-members-3322282)

A large dose of reality seems to be needed.

"Pay Increases"

"Members of Congress are eligible to receive the same annual cost-of-living increase given to other federal employees if any. The raise takes effect automatically on January 1 of each year unless Congress, through the passage of a joint resolution, votes to decline it, as Congress has done since 2009."

[jdulej]

Salaries and Benefits of US Congress Members (/salaries-and-benefits-of-congress-members-3322282)

A large dose of reality seems to be needed.

"Pay Increases"

"Members of Congress are eligible to receive the same annual cost-of-living increase given to other federal employees if any. The raise takes effect automatically on January 1 of each year unless Congress, through the passage of a joint resolution, votes to decline it, as Congress has done since 2009."
Thanks for posting this. Congress was shamed into this during the financial crisis and has not had the gall to change it since then. Luckily for us, they are very good at not doing things

[biker1]

I am not sure how that was possible. I believe the maximum family benefit is 180% of the beneficiary (who died). That would suggest a bit under $3000 for the family.


I dont understand why government does anything anymore. For years there's no COLA then comes a whopper. .
Some folks eek by on $300 a month SS and rely on the largesse of relatives or neighborhood groups like Elks or moose lodge. The ones who get $4500 a month SS PAYMENTS MAKE ME QUESTION THE WHOLE SHEBANG. I know a gal whose husband passed and she had infant twins, and collects $1500 a month + 1500 +1500 survivor benefits. All i got when my husband passed was $225 one -time SS check SINCE I WAS COLLECTING MY OWN SS benefit.
Where is the logic in no benefits and. Overpaying on others ?

[Chi-Town]

Two years (in the past) President Obama adjusted the COLA to 0%

Hmmm. How did he do that adjustment.

[mydavid]

Well my monthly increase won't even fill up my gas tank at today's prices - and that is BEFORE I pay additional income tax on it. Big whoop!

More expensive food, rents boost U.S. inflation; further increases anticipated (https://finance.yahoo.com/news/u-consumer-prices-increase-solidly-123906472.html) I've been drawing SS for 15 years and have yet to pay income tax on it, sounds like I could that COL raise.

[jdulej]

Don't worry, the democrats will just print more money that the country has to borrow creating even more inflation and national debt.
It’s fun to blame the dems for the national debt but the truth is every administration has run the tab up by trillions. The only ones really justified were Obama, some of Trumps aimed at pandemic recovery and Biden's for the same reason.
For as long as the US is the top of the heap debt does not really matter

[Pres1939]

Nice, but how much of this is negated by an increase in Medicare?? That usually happens. 😩😩

[MollyJo]

On the flip side, when a gang member is ‘taken out’ by a rival gang, there’s a lot of ‘future babies’ not being created…

[Pres1939]

Whoo Whoo, you're getting a raise Village people.


Social Security Cost-of-Living Adjustment for 2022 Is 5.9% - Clark Howard (https://clark.com/personal-finance-credit/investing-retirement/social-security-cola-2022/?utm_source=Clark.com&utm_campaign=f2a5d71246-Clark_Daily_Newsletter&utm_medium=email&utm_term=0_afa92deb83-f2a5d71246-71587705)

Nice, but how much will Medicare increase and negate much of the 5.9%???
Usually does. 😩😩😩

[OrangeBlossomBaby]

I dont understand why government does anything anymore. For years there's no COLA then comes a whopper. .
Some folks eek by on $300 a month SS and rely on the largesse of relatives or neighborhood groups like Elks or moose lodge. The ones who get $4500 a month SS PAYMENTS MAKE ME QUESTION THE WHOLE SHEBANG. I know a gal whose husband passed and she had infant twins, and collects $1500 a month + 1500 +1500 survivor benefits. All i got when my husband passed was $225 one -time SS check SINCE I WAS COLLECTING MY OWN SS benefit.
Where is the logic in no benefits and. Overpaying on others ?

It's because you don't understand how it works. There's plenty of logic in it.

Your "gal" whose husband passed and she had infant twins? The husband would've needed to be 62 or older to even be eligible for any social security at all. Assuming she's still of child-bearing age, she's probably younger than 45. That'd put hubby at 18 years older than wifey-poo. No judgement there, just saying - it seems unlikely that all of these things would be true. If it is true, then yes - wifey and twins each get survivor benefits, until she is 62 and eligible for her own, and until those kids are 16 or 18 (I had it up on another web tab and forgot which rule was 16 and which was 18).

The survivor benefit is to help people who typically earn less than their spouses. It was originally for wives who outlived their husbands, during a time in America when most women didn't work at all and those who did, made pennies on the dollar compared to men. It was to keep widows and their children out of poverty.

Meanwhile, the maximum individual benefit to any worker is under $4000. So your anger against people getting $4500 checks is misplaced. No one living, and collecting their own social security check from their own years of working, is getting a check bigger than $3800-something. If they're getting more, then it's a survivor benefit, or it's actually more than one person in the household, each receiving a benefit.

You can read all about how social security works on their website. But, just because you don't understand it, doesn't mean it is illogical. It just means you're limited in your understanding. You can always expand that limitation if you wish, all the information is available to you.

[rothbear]

Nice, but how much of this is negated by an increase in Medicare?? That usually happens. 😩😩

All depends on your SS. I was forced to take mine early due to losing my job during the last financial crisis (and behing too old to find another one) so between that and getting lower pay and taking time off for child care my SS before deductions is about $930/month. DH SS before deductions is about $2250/month. But we will both get hit with the exact same amount of increase in MC but it takes a bigger chunk of my much lower increase. Don't even want to see how much the supplement is going up but I suspect it will take pretty much all of what's left between us of the increase.

[golfing eagles]

All depends on your SS. I was forced to take mine early due to losing my job during the last financial crisis (and behing too old to find another one) so between that and getting lower pay and taking time off for child care my SS before deductions is about $930/month. DH SS before deductions is about $2250/month. But we will both get hit with the exact same amount of increase in MC but it takes a bigger chunk of my much lower increase. Don't even want to see how much the supplement is going up but I suspect it will take pretty much all of what's left between us of the increase.

Which is EXACTLY the way it is supposed to work. It is a Cost Of Living Adjustment, not a "raise". The increase in SS check is SUPPOSED to be eaten by increased prices, so that you stay even. It was never intended to INCREASE anybody's purchasing power, the time for that was when people were working---make more, save more, have more in retirement. At least with COLA, people won't fall too far behind (in theory)

[biker1]

The poster was lamenting that potentially the Medicare and Supplemental Policy increases were going to consume all of the SS COLA. Health Care is not their only expense.

Which is EXACTLY the way it is supposed to work. It is a Cost Of Living Adjustment, not a "raise". The increase in SS check is SUPPOSED to be eaten by increased prices, so that you stay even. It was never intended to INCREASE anybody's purchasing power, the time for that was when people were working---make more, save more, have more in retirement. At least with COLA, people won't fall too far behind (in theory)

[Kenswing]

Go to the Social Security website and see how much YOU actually contributed to Social Security....then take your monthly annuity and total the amount you've taken to date.

I'm pretty sure you've taken a whole lot more than you put it
You're wrong. I've taken out absolutely nothing. I'm still almost 5 years out before I can even start drawing at 62.

[golfing eagles]

The poster was lamenting that potentially the Medicare and Supplemental Policy increases were going to consume all of the SS COLA. Health Care is not their only expense.

Agree. Hence the "in theory". I believe the Medicare increase is only $10/month, but the exposure on a supplemental policy can be unlimited. But for anyone that is facing budget concerns, there is always the option of a Medicare advantage plan which costs nothing over the part B premium

[jagdl]

I wish they would do that on a sliding scale and weigh it at the bottom income levels. We don't need it, just like we didn't need the COVID checks. I feel for those less fortunate than me, and would like to see them get more.

They can't legally do that however, we donated our stimulus checks. One to Salvation Army to help feed people, One to a restaurant to help them stay afloat. We bought $1200 worth of their food and they donated it to women's shelters. There is obviously room in you heart and we are glad to hear some of the good comments.

[biker1]

We can take a quick look at the numbers in some additional detail. The poster did not say what their Medicare and Supplemental Policy costs were but we can make a few assumptions. They will realize a combined increase in their SS benefit of approximately $190 per month. They could be paying income tax on some of that - don’t know. Their combined Medicare premium increase will probably be $20 per month, as you indicated, assuming they aren’t subjected to IIRMAA costs. If we assume a combined Supplemental Policy premium cost of $500 per month (may or may not be high, depends on age, smoking status, sex, and which plan ) and an increase of 10% in 2022 then that would result in a combined increase of $50 per month. So, with these assumptions, $70 per month of their $190 per month SS COLA will be consumed by increases in Health Care Policy premium costs. In reality, I don’t think all of their SS COLA will be consumed by the Health Care Policy premium increases but it appears to be a concern to them. Depending on your health, switching to a Medicare Advantage Plan may or may not be a good idea.

Agree. Hence the "in theory". I believe the Medicare increase is only $10/month, but the exposure on a supplemental policy can be unlimited. But for anyone that is facing budget concerns, there is always the option of a Medicare advantage plan which costs nothing over the part B premium

[Vermilion Villager]

You're wrong. I've taken out absolutely nothing. I'm still almost 5 years out before I can even start drawing at 62.

OK...so you missed the point...

1. go to the site and see how much you will be projected to contribute when you are 62.
2. Now use the tables to determine your life expectancy...you should get about 23 years (276 months).
3. Take the amount you will be taking each month in SS times 276 and see if it exceeds what you contributed.

[jdulej]

Another source of inflow to SS and Medicare is non-citizen workers. Be they legal or illegal, if they have a legit job in the US, they (and the company they work for) pay into the funds. Few will ever see any of it. Certainly not the illegal ones, and the rules for legal (non green-card holders, with just a work visa) are pretty strict as I recall. Admittedly I have not checked the rules since I retired 8 years ago.

[Kenswing]

OK...so you missed the point...

1. go to the site and see how much you will be projected to contribute when you are 62.
2. Now use the tables to determine your life expectancy...you should get about 23 years (276 months).
3. Take the amount you will be taking each month in SS times 276 and see if it exceeds what you contributed.
Of course I and everyone else should get back more than we contributed. Do you believe that the government should be able to hold onto our money for decades without providing a decent rate of return? I for one am not in the habit of giving out lifetime interest free loans.

[Dr Winston O Boogie jr]

I wish they would do that on a sliding scale and weigh it at the bottom income levels. We don't need it, just like we didn't need the COVID checks. I feel for those less fortunate than me, and would like to see them get more.

How would they do that? The government doesn't know what our income or net worth is.

[thevillages2013]

I wish they would do that on a sliding scale and weigh it at the bottom income levels. We don't need it, just like we didn't need the COVID checks. I feel for those less fortunate than me, and would like to see them get more.
Get a philanthropic vibe and give it away. Same thing just you are the middleman

[thevillages2013]

Why gas and everything else goes up by 20 % where good what a bunch of bull ****. We are screwed. Sumpter country look at the tax hikes gone up every year for the past 3 years.

Where B Sumpter Country?

[Nucky]

I didn't cry when it was next to NOTHING. I'm not doing the jig down the street because it's a whopper this time.

I have learned one thing, on here, you just can't win.

I rest my case.

[Love2Swim]

Totally agree.
Plus there should be no ceiling on income levels paying into the program. Why stop at $137,700? Presently the lower income folks get the SS tax taken from their income. Yet those who can afford it the most do not. This change would take care of any shortfall easily

The most common sense comment on this thread...:bigbow:

[biker1]

Since the benefit is computed from the amount contributed, there would also be an increase in the amount paid out. I am also too lazy to put together any numbers. The benefit calculation may also need to be modified to maximize the impact. That is going to need some spin.

There may be some truth to that (I am too lazy to check) but so what? It would be even more true and better for the fund if they eliminated the cap and let people/companies contribute for every $ they earned.

[retiredguy123]

Since the benefit is computed from the amount contributed, there would also be an increase in the amount paid out. I am also too lazy to put together any numbers. The benefit calculation may also need to be modified to maximize the impact. That is going to need some spin.
Correct, the payout is computed from the amount contributed. But, the payout to the lowest income bracket is 90 percent of the income, while the payout to the highest income bracket is only 15 percent of the income. Very skewed in favor of those who are in the low income contribution bracket. Also, the high income people pay income tax on their payout, but the the low income people are exempt from the income tax.

[jdulej]

Correct, the payout is computed from the amount contributed. But, the payout to the lowest income bracket is 90 percent of the income, while the payout to the highest income bracket is only 15 percent of the income. Very skewed in favor of those who are in the low income contribution bracket. Also, the high income people pay income tax on their payout, but the the low income people are exempt from the income tax.
Wasn't the original (at least, maybe not now) goal of SS to be a safety net so people with very little, or nothing, would not starve on the streets. It was never meant to be someone's entire retirement plan. Given that, the system seems to be working fine. If you made a million dollars a year, your pay in stopped at $100,000-ish (don't recall the number) and you will get around $50,000/year. You can use that to buy your new Porsche every 3 years. The extra you paid in goes to the good of your fellow Americans, and you should be happy to do it.
It works the other way around, just as it was meant to, for people on the lowest end of the income scale.

[retiredguy123]

Wasn't the original (at least, maybe not now) goal of SS to be a safety net so people with very little, or nothing, would not starve on the streets. It was never meant to be someone's entire retirement plan. Given that, the system seems to be working fine. If you made a million dollars a year, your pay in stopped at $100,000-ish (don't recall the number) and you will get around $50,000/year. You can use that to buy your new Porsche every 3 years. The extra you paid in goes to the good of your fellow Americans, and you should be happy to do it.
It works the other way around, just as it was meant to, for people on the lowest end of the income scale.
Today, the maximum SS payout at full retirement age, is about $37,000 per year, before taxes. I think the original goal of SS is irrelevant. But, the real goal for most Government programs is to get votes.

[dewilson58]

Where B Sumpter Country?

All around Lake Sumpter.

[manaboutown]

All around Lake Sumpter.

So finally there is "p" in Lake Sumter?

[OrangeBlossomBaby]

Another source of inflow to SS and Medicare is non-citizen workers. Be they legal or illegal, if they have a legit job in the US, they (and the company they work for) pay into the funds. Few will ever see any of it. Certainly not the illegal ones, and the rules for legal (non green-card holders, with just a work visa) are pretty strict as I recall. Admittedly I have not checked the rules since I retired 8 years ago.

Yup. All those "illegals with fake social security numbers" who use their fake IDs to get legitimate jobs - have social security taxes deducted from their paychecks. That money goes into SS and they'll never see a dime of it.

And MOST non-citizen workers who are here totally legally, pay in to SS out of their paychecks, and also will never see a dime of it.

There were also states where teachers and other municipal employees had pensions and were considered "exempt" - meaning, they would not get any social security benefits when they retired because their municipality paid their pension. But - they still had social security taxes deducted from their paychecks. I don't know if any states still do that, but some used to.

[OrangeBlossomBaby]

Today, the maximum SS payout at full retirement age, is about $37,000 per year, before taxes. I think the original goal of SS is irrelevant. But, the real goal for most Government programs is to get votes.

The maximum you can possibly get, if you wait until you're 70 to take social security, is $46,740/year ($3895/month).

At full retirement age, which is 66 and 2 months, is $37,776/year (3148/month).

In order to get that, you need to have earned over $100,000/year for around 30 years.

There is also a maximum family benefit - which is the most a family can receive off of a single person's social security, including minor children, disability, spousal and survivor benefits. That maximum is between 150% and 180% of the breadwinner's primary amount.

And so that person who is getting $1500 for herself, plus $1500 for EACH of her twins? It's not happening. It just flat out ain't happening. The formula doesn't go up that high. That'd be 300% of the base, and the maximum is only 180% of the base.

[jdulej]

People do not seem to understand. Social Security, first of all is a graduated tax. People who earn more pay more per increasing benefit. Close enough numbers, social security was a 7% tax for people who worked for someone else. Your employer paid another 7% for you-essentially tax free income. I was self employed and paid 13%.

Many think there is an account, a pile of money that you paid in. I paid in for 45 years.
That is not the case, they use money coming in to pay the money going out. I did not have a choice. If, we think of social security as insurance, I/we who earned middle class income or more could have bought the same coverage as private insurance for less.

That covid check, first of all I did not qualify. I agree it was ridiculous. Retired people being paid for inability to work due to covid. Truth had I qualified for a check, I would have taken it and cashed it.

Just a minor item about the stimulus checks. The point of them was for people to get out and spend the money to help stimulate the economy. It wasn't meant only to help less fortunate. So giving it to old people in the Villages was good IMO if it resulted in more people going out to dinner or hitting the shops o even spending it on Amazon. The worst thing one could have done with those checks would have been to just deposit them into a savings account.

[dewilson58]

In order to get that, you need to have earned over $100,000/year for around 30 years.



Nope.

[Shutterbug]

Whoo Whoo, you're getting a raise Village people.


Social Security Cost-of-Living Adjustment for 2022 Is 5.9% - Clark Howard (https://clark.com/personal-finance-credit/investing-retirement/social-security-cola-2022/?utm_source=Clark.com&utm_campaign=f2a5d71246-Clark_Daily_Newsletter&utm_medium=email&utm_term=0_afa92deb83-f2a5d71246-71587705)

Yeah. Medicare will take 4.9 percent of it.

[dewilson58]

Yeah. Medicare will take 4.9 percent of it.

Nope.

The math does not work that way.

:ohdear:

[Dana1963]

So finally there is "p" in Lake Sumter?
Who cares we all know what he means or does he need to stay after school

[blueash]

What people seem to forget, and nobody has mentioned, is that your SS contributions do not just go for old age benefits. You have been given disability coverage, not just for yourself but for your family. Disability insurance is very expensive and you have to include that benefit in your thinking. Yes, it is not as generous as private insurance as it requires inability to work for at least a year, but it covers so many problems both physical and psychiatric. It also covers special needs children. So you've had many thousands of dollars in benefits all through your working years which hopefully you and your loved ones never needed to claim.

[OrangeBlossomBaby]

Nope.

According to the AARP calculator, someone my age, never married (because I didn't want the calculator to count anyone else's income in this experiment), who earns $100,000, can expect approximately $2848/month when they reach full retirement age.

In order to reach that $3148/month (maximum you can possibly get at full retirement age, from your own earnings) you would need to have worked for more than 30 years at over $100,000 per year. In fact, you'd need to have earned more than $200,000 per year.

But $200,000 per year is more than $100,000 per year, and I said it had to be more than $100,000 per year.

So - yup.

[dewilson58]

According to the AARP calculator, someone my age, never married (because I didn't want the calculator to count anyone else's income in this experiment), who earns $100,000, can expect approximately $2848/month when they reach full retirement age.

In order to reach that $3148/month (maximum you can possibly get at full retirement age, from your own earnings) you would need to have worked for more than 30 years at over $100,000 per year. In fact, you'd need to have earned more than $200,000 per year.

But $200,000 per year is more than $100,000 per year, and I said it had to be more than $100,000 per year.

So - yup.

"I read it, so it must be true"..................nope!!!

In the '90's, SS max'd out in the $50k to $70k range...........it did not good to make over $100,000. Thru 2007, the max was less than $100k.

Don't believe everything you are told, facts are better.

[biker1]

Wrong. The maximum social security benefit will come from 35 years of earning the salary cap (that is taxed). The cap, or “benefit base” in SSA lingo, is $142,800 for 2021, well below $200K. Income in excess of the cap is not taxed and does not increase your SS benefit. The cap was $48,000 is 1989. Here is a table of the cap:

Contribution and Benefit Base (https://www.ssa.gov/oact/cola/cbb.html)


According to the AARP calculator, someone my age, never married (because I didn't want the calculator to count anyone else's income in this experiment), who earns $100,000, can expect approximately $2848/month when they reach full retirement age.

In order to reach that $3148/month (maximum you can possibly get at full retirement age, from your own earnings) you would need to have worked for more than 30 years at over $100,000 per year. In fact, you'd need to have earned more than $200,000 per year.

But $200,000 per year is more than $100,000 per year, and I said it had to be more than $100,000 per year.

So - yup.

[dewilson58]

...

[M2inOR]

Many folks pay more than $148/mo. Some are paying an additional $504.90/mo.

The dreaded IRMAA!

If only all those who are advocating for "Medicare for All" understood that Medicare premiums must be paid monthly.

For some reason, they think Medicare is free! They have no idea!

[jdulej]

The dreaded IRMAA!

If only all those who are advocating for "Medicare for All" understood that Medicare premiums must be paid monthly.

For some reason, they think Medicare is free! They have no idea!

I think most people understand that nothing is free and have no issue with paying that fee. My better half is not yet old enough for Medicare, so we pay $900/month for "okay" insurance with a yearly max OOP of $8500 (on top of the premium). And if you need specialist care, you better hope it's in network.
The economies of scale that Medicare for all could offer are huge.

[M2inOR]

For Medicare most have no problem with the monthly fee for Part B, D, or Medical coverage.

Certainly reasonable, but if not, each state usually has a program for low income Medicare eligible recipients.

The challenge is the co-pays and other out-of-pocket fees to pay for needed services. Recently I heard from one person who could not afford the co-pays for her needed physical therapy.

One must shop carefully today as there are many, many options to choose from. Organizations like SHINE can help people better understand the differences.

Europe does have comprehensive medical coverage for it's residents. Each country offers healthcare at low-cost. But even with that, I encountered many people flying to the US and/or Southeast Asia to get medical procedures done. Why? The wait list were long in their home country.

In Europe, many large companies still provide private medical insurance to some employees so they are taken care of better than what the national healthcare programs can offer.

It certainly is a complex topic to deal with. Explaining the pros and cons would detract from the simple mantra of what Medicare for All implies.