Social Security

2020 Social Security COLA ☹️

The SS Trustees long range prediction for the 2020 COLA is 2.6%

However, the immediate picture using the October and November CPI-W indicates no COLA in 2020.

As the months go by the picture will become clearer. The December CPI-W will be released on January 11th.

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5 replies »

  1. Since they use the change in CPI-W y-o-y for July, August, and September to factor COLAs, looking at any other months is a fools errand. We do not know what will change over the next 9 months. Oil price is heading back up, already. The only thing that will produce a zero COLA in 2020 would be if the USA enters a recession in early 2019. Most experts think we will not enter a recession until sometime in 2020. The FED has already said they are putting any further interest rate increases on hold.

    I noticed several price increases at Sam’s Club today. They know when we get the cola on Jan 1 and I have seen these increases in past years. Every time we got a pay raise in the military the price of haircuts went up at the BX barber shop.

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  2. .

    If there is no COLA in 2020, hopefully there will also not be an increase in the Medicare Part B premium or else most of us will be back in the hold harmless hole again for the next COLA.

    Btw.. I have noticed recent articles/commentaries advocating increasing income levels when SS becomes taxable. Those original incomes levels [from 1983 and 1993] were never indexed for inflation, so hopefully Congress will correct that injustice.

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      • I am 62, married and using a tax calculator I will not have to pay any tax on our SS income until total income reaches $41,314 and it will be $28. Current retirement income is $36,516 Since everyone gets back everything that was paid in SS taxes in about 8 years of starting SS benefits, I have no problem with taxing SS benefits, it should be indexed to inflation going forward. It will be years before I will have to pay any big federal tax bill, when income equals $50,000 at about age 80 = 260 per month and only $480 will be tax on my SS benefit, most tax will be on my pension income.

        As far as fixing SS so that benefits will not have to be cut in 2034 just raise the payroll tax on employers 3% slowly over the next 15 years. Why just raise the tax on employers? Business just got a big tax break and many do not offer any retirement to their workers any longer. Part time employees even make less with zero benefits.

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