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.

Advertisements

17 replies »

  1. By the way, I will not contribute to any more charities. With the quarter the government is stealing from me every month, let them pay the charities! I am pissed!

    Like

    • ELD – No one stole anything from SS taxes we paid. Most of the SS taxes collected each year go to paying benefits. Any extra is used by the government and special bonds are added to the SS Trust fund. There is 2.7 Trillion in the SS Trust fund and it will all be redeemed by 2034, to pay benefits. Then the fun will start, that is if our do nothing Congress continues to do nothing. I am saving for that day, I will be 77 and have at least $50,000 in an account just in case.

      Like

  2. I am outraged! Because I saved in my youth I get hit with a 22% tax on my SS payment. People who have earned less than me in their working careers are bringing home MORE than me in terms of SS payments. My sister pays NO tax on her SS, but I pay 22%. Where is the justice? The middle class always gets the shaft!

    Like

    • No one pays tax on more that 85% of their SS benefit (most only on 50%) and keep in mind your employers funded half your benefit and that money was tax free to you. Imagine if you had to pay double or triple for Medicare premiums?

      Like

      • When I was employed I paid $50.00 a month for full family medical insurance. Why does it have to be so high now? Retirees get the shaft-ALWAYS! I am helping to support a millennial so she won’t go on the dole. YET, $400 a month gets taken from me. NO ONE told me I had to pay taxes on my SS income. Why isn’t this made known in the media. You only hear that we are taking and taking, but not giving back. Well, I am giving a helluva lot and it’s a sin! Yet, that’s not made public. They want you to sve for your future but the more you save, the more they rake. So what’s the use in saving?

        Like

  3. Social Security COLA’s are not important to Members of Congress for two reasons: (1) Their retirement income will NEVER be dependent upon any retirement benefit provided by Social Security, and (2) the majority of eligible receipt ants who receive Social Security for whatever reason do not vote, and therefore they do not constitute a sufficient voting block to be of concern to our elected officials in the hallowed halls of Congress.

    As has been substantiated by groups who serve as advocates for a realignment of the criteria which determine the amount of COLA each year, no move is made to more accurately reflect increased costs seniors must absorb day after day. Once again, those who might be in a position to change the factors which make up what the COLA amounts to, are sufficiently wealthy that absorbing increased costs will not ever impact them.

    It’s a no win situation for people who must make a decision whether or not to refill their medications, whether or not to seek medical care for survival, or eat or skip meals. In this country it’s a sad testimony for those who have worked their entire life only to regret the decision they made to join the ranks for retiree’s. Nobody who receives Social Security benefits seeks to become wealthy at the expense of the government. We just want to be able to sustain existence until the time of our demise.

    Like

    • In fact older Americans are a major voting block and very influential. Consider the power of the AARP. Nothing is at the expense of the government, everything is at the expense of taxpayers who must pay for everything promised. Should younger Americans now carry a greater tax burden so older Americans can get a larger COLA when many of those younger folks are trying to save for their future? SS was never intended to be what retired Americans live on, it was a basic floor of income. Change the COLA to use the CPI-E is no guarantee of higher COLAs and even when it is the difference is very small, some years it is actually less than the current CPI-W

      Like

  4. 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.

    Like

  5. .

    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.

    .

    Like

      • 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.

        Like

      • How about not giving us a COLA but reduce the taxes that we pay on our benefits? They stole from the fund in the first place. It shouldn’t be bankrupt.

        Like

Leave a Reply to Stephen Turbee Cancel reply

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 )

Connecting to %s