Social Security

Social Security COLA 2019 heading still higher ๐Ÿ˜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.

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8 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.

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    • ” 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.

      .

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

    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 youโ€™d let government take care of you.

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

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    • 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.

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      • .

        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.

        .

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    • Not everyone figures that the government will take cake of them in retirement. A great majority of working class didn’t shave a dime extra to save while raising children and providing food, clothing and shelter. I would loved to have saved more. I was taxed and insurance out of anything there was left over to save.

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      • Some yes, a great majority no. They instead set spending on non necessities ahead of saving. Save first, and set the total lifestyle on whatโ€™s left.

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