Social Security

Social Security COLA 2019 heading still higher πŸ˜ƒ

The CPI-W for January 2018 was 241.919, for February it was 242.988, for March it was 243.463 and April was 244.546; all are a significant increase over the previous months.

Their average is also significantly higher than the 2017 benchmark average. That average is 239.668

The CPI-W is up 2.6% over the last twelve months compared with 2.4% last month.

While this may seem like good news for Social Security Benefits, keep in mind this also means higher prices for goods and services.

The average CPI-W for July, August and September 2018 must reach 246.858 for there to be a 3% COLA.

Advertisements

6 replies »

  1. I love to see COLA projections going up. I get a raise on my SS and military pension. Since I pinch every penny and only buy things I need. I do not even look at gas prices anymore, since in retirement I only buy 15 gallons per month and my car is paid off. I live in a low cost of living state, MT and we do not have a sales tax, so any price increases are much easier to budget. This may change a little when my wife and I turn 65 in 32 months and have to pay Medicare premiums, then I am sure almost all SS COLA will go towards premium increases.

    Like

    • ” I am sure almost all SS COLA will go towards premium increases.”

      ______________

      That’s the other shoe that drops. How much of any 2019 SS COLA will go to another Medicare B premium increase. Meanwhile, the SS COLA [that many never see because it goes to Med B premium increases] puts you in a higher income tax bracket.

      .

      Like

  2. β€œWhile this may seem like good news for Social Security Benefits, keep in mind this also means higher prices for goods and services.”

    So if your social security benefit goes up a few bucks a month, any and all savings you might have in bank accounts, fixed income vehicles or pensions might take a 3% hit in buying power. Which would you rather, a 3% gain on maybe 15 or 20 thousand dollars a year in social security and a 3% loss on maybe hundreds of thousands in retirement savings or no inflation, no COLA and no diminishment in your savings?

    +3% on 20,000 social security = $+600

    -3% on $500,000 in retirement savings = $-15,000

    I guess your view depends on whether you saved for retirement or just figured you’d let government take care of you.

    Like

    • Looking at the data regarding dependency on Social Security, you can understand why it’s the primary issue even though your point is valid

      Like

    • I get the same feeling each time savings & CD interests rates rise. I am happy that I am finally earning something in my bank accounts but I know that the flip side is that everything else is costing me more.

      Like

      • .

        My local bank is now offering over 2% interest on two years CDs
        and 3% interest on 5 years CDs. The trend is for % to go higher.

        .

        Like

What's your opinion on this post? Readers would like your point of view.

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

w

Connecting to %s