Social Security

How is it looking for an increase in your Social Security benefit come January 2013?


Now, what will happen to my Medicare premium in 2013?

This information has been updated and the projection is now closer to 1%. Click on the Social Security category on the right side for more recent information. 

Well it’s too early to tell for sure, but right now we are on track for an increase of 1.7%.The actual increase will be based on the average CPI-W index for the third quarter of 2012 compared with the same quarter in 2011.  The average for 2011 was 223.2337.  As of April 2012 the average was 227.012.  For the month of April the index increased 0.3 percent.

If, and it’s a big if, the average CPI-W for July, August and September 2012 turns out to be 227.012, the calculation for the Security COLA would be 227.012 – 223.2337 = 3.7783/223.2337 for an increase of 1.69253 or 1.7%.

Unless we experience deflation between May and October which is unlikely, the 2013 Social Security COLA will be 1.7% or higher. For the person receiving the average monthly Social Security benefit ($1230 at the beginning of 2012), that is an increase of $20.91.

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36 replies »

  1. WAKE UP CALL. I saved 15% of my pay for 20 yrs. in my 401k plan @ work. had a real big savings built up for my retirement. Then my wife got sick and because of the games the insurance company’s play( tier 1,2,3,4,5) my retirement savings is now gone. I am 1 step away from being homeless.PENSIONS IS THE ANSWER. NOT 401K’s.

    • You’re right pensions are the answer (in addition to 401k). But what would you have done without the 401k?

      I’d like to hear more about the health insurance issues you faced that caused the problem. What kind of games did they play?

  2. Hi. The scumbags in Washington including this scumbag in office stold our money . Yr after yr no less.regarding the person that gets $2200 a month. That is true. They look at ur highest earning yrs. The big big problem is if u started work 1970 like me. Who worked for government no LEss for 10. Also worked for casino for 10 yrs also office work etc. Most wages were under $6.00 for most work. $11.00 for casino job ( only 4. Yrs) their scam works. They say u made low wages. I am disability now. I am 61. So u see the scumbags had their stealing crap down for quite some time. U didn’t really notice till it was way too late for u. Save ?? I guess we could have gone without with some goodies. But most never did including me. We trusted the scumbags to be fair & be good to us. I suggest no vote for the scumbags. Just don’t vote for ur demise.whatever scumbag will win . No change at at all will take place. Get it ? No change. I wish everybody luck. Ur going to need it. God bless.

    • Social Security is a ‘safety net’ to keep everybody that paid in off the breadlines. It is NOT a retirement system. Besides, if you always took low paying jobs, your check should be low on the chart. If you wanted more, you should have gone for higher pay when you were working. When I earned $100 a week, I saved $10. Neither was big, but it was a percentage I maintained. Whenever I got a raise, half went to the savings and half to the living expenses. $10 is not a lot either way. Living on $100 is not any different than living on $90. Today, I am considerably ‘more comfortable’ than a lot of those ‘spend it all’ folks.

    • Yeah, a joke at best. We went 2 years without one while gas alone doubled in price and the do-nothing people in congress voted them a huge pay raise. And now 1% ? I’d like to throw it back in their faces

      • Congress did not get a raise at all during the period there was no COLA or for three years for that matter. The COLA is fixed by an automatic formula which many people think actually overstates the true impact of inflation on older Americans.

        Why do we seniors think we are entitled to more when young families are struggling as much if not more?

    • 1.7% is great considering our country is broke and we are borrowing 42 cents of every dollar that we will be getting. The borrowing is getting tougher in that half of the treasuries being sold are NO LONGER being bought by other countries. They are instead being bought by the FED. When other countries no longer trust us to repay, who will we borrow from?

  3. The elected people who run our country or try to take care of their selves now who will care for them when they retire? I hope they are treated as we are now.

    • The COLA is wired into the CPI-W by law, there is no discretion. However, if the CPI jumps in September the COLA could be a bit higher than now projected.

    • No word on that yet, but it’s a good bet that because the number is to be released before the election, it won’t be very high. Although if they delay release until after November 6 anything is possible.

  4. I guess if you don’t have to pay over $4.00/gallon of gas for your car or pay $12.00 to go over the George Washington Bridge everyday to get to work, or didn’t have to eat to live,
    a 1 percent COLA increase in Social Security would be sufficient!

    It would be interesting to know what percentage increase in their salary Congress had voted for themselves for the years 2009 through 2011 — keeping in mind of course that there was NO COLA increase in Social Security for those years!

    • If your job pays insufficiently to pay for the cost of getting to it, why would you want to continue to subsidize it with your social security check? I do agree the gas cost is ridiculous. Thank the commie in the White House for that. If Sara Palin were the VP or Pres, guaranteed we would be paying less than the $1.87 it was when Borat went to the White House.

  5. Do the people in charge of CPI only track inflation based on increase or do they also take into consideration that we are paying the same price for the ever disappearing can of tuna and other foods and items?

    • Very good point, quite astute. As far as I know they track prices so the declining size of tuna cans, ice cream, toilet tissue rolls and much more is the real inflation these days and the cut in size is frequently a hefty percentage. In the case if the disappearing gallon of ice cream it’s 25%. On top of that you now have to buy two of something just to make a recipe work.

  6. Social Security is not an entitlement program. We (and if you worked for an employer) paid into the program. And if congress had not raided the fund, it they had not robed it there would be plenty of money. But no they couldn’t keep their hands off of it.

    • First there is no real fund and never has been. Second, the taxes you and I paid while working paid current beneficiaries with any excess invested in special Treasury Bonds. Today the taxes workers pay are insufficient to pay benefits so no money is invested in new bonds. You and I never paid enough in to cover our lifetime benefits, our survivor benefits and the COLA.

      While some people make the argument there should be consideration for the time value of their contributions, the fact is there is no place they could have gotten sufficient interest on their contributions to pay their benefits without substantial risk of loss along the way.

      The reality is the government used the proceeds from the bonds it sold to Security the same way it does if you buy a savings bond; for general expenses. When Social Security cashes in the bonds, the money will come from increased debt until there are no more bonds to cash in. In 2005 it was estimated by HHS that payroll taxes would have to increase 33% to keep things going. Instead Congress decreased the taxes this year and last and made up the difference with more debt.

      Social Security was designed to be pay as you go, but over the years Congress added many new benefits including the COLA but failed to increase the incoming taxes to pay the promises.

      • It was Ronald Reagan and George W. Bush That raided the Social Security we worked so hard for. Do we need another republican in president in 2013 ?

      • Exactly what are you talking about? How did anyone raid Social Security?

        Even the Obama cuts to the Social Security payroll tax which could be characterized as raiding SS are being made up by more deficit spending to put the money in the SS account.

  7. one person said, why after a long term work you depend on Social Security for your monthly living expenses. The answer to that is this……Most and I say most 401 K’s went to wall-street after the fall out in 2008. I know mine was one of them. I am 55 years old and have bad health. Still working but not earning nearly enough to save anything. So….I will need to depend on my Social Security Benefits.

  8. It is pretty sad for us now why don’t they just keep their money I feel like a dog on the street and they are throwing me a bone Thanks America Kudos Washington

    • The wealth don’t understand that I live on my $2100 monthly SS check. If Romney gets elected, you can bet beifits to drop by as much as 25%

      • First of all that’s not true at all. Nobody is talking about cutting existing Social Security benefits. However, if nothing is done to fix the system, everyone could get a 25% cut when the Trust Fund is exhausted. Don’t shoot the messenger, blame all the politicians who have ignored the problem for years.

        Why after a lifetime of work, why do you live only on Social Security?

      • if your getting $2100.00 a month from s.s. you must have made mucho money in your life time or your around 99 years old.the average person receiving s.s. gets around $i,ooo.00 a month.what was your honest, i can imagine what or who you worked for..

      • The average is very misleading as it includes surviving spouses and children and this on disability.


        Richard D Quinn Editor

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