Social Security Cost of Living Increase!?

LDUBS · Oct 25, 2024

Got an email from SSN saying there will be a 2.5% COLA increase -- at least for many. I guess every little bit helps. Won't know exactly how much, if any, until early December I guess.

Kenneth Mixson · Oct 25, 2024

Too bad it can't keep up with the cost of inflation.

GTS225 · Oct 25, 2024

Ummmmm.....since when did the SSA start talking through emails? I'm pretty sure they told me/us in previous mailings that they will never converse with an email.

Roger

LDUBS · Oct 25, 2024

They will send notifications, not account info, via email. I think I did sign up for email notices.

Ray Clark · Oct 25, 2024

LDUBS said:
They will send notifications, not account info, via email. I think I did sign up for email notices.

True.

When I receive e-mails from any place (Soc Security, VA, banks) I NEVER use any included links in the e-mails to go see what the e-mail is notifying me about. I always open a new tab and log in with however I have that account set up.

overboard · Oct 25, 2024

LDUBS said:
Got an email from SSN saying there will be a 2.5% COLA increase -- at least for many. I guess every little bit helps. Won't know exactly how much, if any, until early December I guess.

WOO WOO!
Like you said, every "LITTLE BIT" helps, guess the new house, the new boat, and the new car is going to have to wait a while! LOL!

flatheadsteve · Oct 25, 2024

Va disability/ retirement pay increased the same 2.5%. Sure seems like prices have gone up more than that but something is better than nothing.

airshot · Oct 26, 2024

It is called government math....they use whatever numbers they need to get the outcome they want ! Unfortunately there are enough people that fall for their tactics that they keep voting the same folks back in. The folks on welfare and medicaid probably get more, that is where the rest of our raise went to...

LDUBS · Oct 26, 2024

As I understand it, the cola adjustment is calculated based on recent CPI data.

Haven't you all heard inflation is down? Problem is the current inflation rate has nothing to do with our current high prices for just about everything. Politicians forget to clarify that when they tout how well they have handled inflation.

David Atkins · Oct 26, 2024

LDUBS said:
Got an email from SSN saying there will be a 2.5% COLA increase -- at least for many. I guess every little bit helps. Won't know exactly how much, if any, until early December I guess.

If you got your letter as I did, look at the increase for the part '"B" coverage premium - it went up to the exact amount of the 2.5% COLA increase so you really get no extra money in your check each month!

The Consumer Price Index showed prices increased 3.2 percent between February 2023 and February 2024, according to the Bureau of Labor Statistics. This was a huge drop though from the 9.1 percent peak in June 2022.

What we need is another 4 years of the Democrats raising the cost of living so they can afford to live better!

David Atkins · Oct 26, 2024

flatheadsteve said:
Va disability/ retirement pay increased the same 2.5%. Sure seems like prices have gone up more than that but something is better than nothing.

You get nothing, they went up on the part ''B" premium and took back the 2.5% COLA increase!

LDUBS · Oct 26, 2024

David Atkins said:
If you got your letter as I did, look at the increase for the part '"B" coverage premium - it went up to the exact amount of the 2.5% COLA increase so you really get no extra money in your check each month!

The Consumer Price Index showed prices increased 3.2 percent between February 2023 and February 2024, according to the Bureau of Labor Statistics. This was a huge drop though from the 9.1 percent peak in June 2022.

What we need is another 4 years of the Democrats raising the cost of living so they can afford to live better!

I was wondering about the part B premium changes (haven't received that info yet). Thanks for sharing. They giveth and they taketh (mostly taketh).

overboard · Oct 26, 2024

I remember reading that inflation is actually based on WAGE increases and not price increases, that would actually make sense since prices across the board are up way more than the small increases given to SS recipients.

LDUBS · Oct 26, 2024

overboard said:
I remember reading that inflation is actually based on WAGE increases and not price increases, that would actually make sense since prices across the board are up way more than the small increases given to SS recipients.

It appears the CPI index used for SSN COLA adjustments is based on prices but only prices paid by those with household incomes mostly from hourly wages, and living in urban areas. Maybe that is where the wage part comes up. I would have never known this in a million years except I just was looking at how they determine the SSN COLA. Additionally, the CPI they use is for the most recent quarter. I suspect the process is legislated.

David Atkins · Oct 26, 2024

LDUBS said:
It appears the CPI index used for SSN COLA adjustments is based on prices but only prices paid by those with household incomes mostly from hourly wages, and living in urban areas. Maybe that is where the wage part comes up. I would have never known this in a million years except I just was looking at how they determine the SSN COLA. Additionally, the CPI they use is for the most recent quarter. I suspect the process is legislated.

They can wrap inflation up in many ways, and just because it may be legislated doesn't mean they provide accurate data or skew those figures - the old saying figures don't lie but liar's figure, I pulled this inflation data from some online inflation calculator.

Inflation can have a dramatic effect on purchasing power. For example, if your current income is $50,000 per year and you assume a 4.0% inflation figure, in 30 years you would need the equivalent of $162,170 to maintain the same standard of living!

alask83 · Oct 26, 2024

David Atkins said:
They can wrap inflation up in many ways, and just because it may be legislated doesn't mean they provide accurate data or skew those figures - the old saying figures don't lie but liar's figure, I pulled this inflation data from some online inflation calculator.

Inflation can have a dramatic effect on purchasing power. For example, if your current income is $50,000 per year and you assume a 4.0% inflation figure, in 30 years you would need the equivalent of $162,170 to maintain the same standard of living!

The SS cola increase almost always ends up in Medicare premium increase.

GTS225 · Oct 27, 2024

alask83 said:
The SS cola increase almost always ends up in Medicare premium increase.

The object is to keep you/us endeared to the system.

Roger

TriBull · Oct 27, 2024

airshot said:
It is called government math....they use whatever numbers they need to get the outcome they want ! Unfortunately there are enough people that fall for their tactics that they keep voting the same folks back in. The folks on welfare and medicaid probably get more, that is where the rest of our raise went to...

Every year the COLA is based on changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), an inflation measure tracked by the U.S. Department of Labor. The SSA compares the CPI-W for July, August and September of one year to the same period the year before. The average percentage change in the index over those three months determines the amount of the COLA.

airshot · Oct 27, 2024

TriBull said:
Every year the COLA is based on changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), an inflation measure tracked by the U.S. Department of Labor. The SSA compares the CPI-W for July, August and September of one year to the same period the year before. The average percentage change in the index over those three months determines the amount of the COLA.

If you look at past rate adjustments, you will see things like gasoline are included when prices are low, but omitted in the calculations when gas is high !! Like I said...government math !!

LDUBS · Oct 27, 2024

TriBull said:
Every year the COLA is based on changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), an inflation measure tracked by the U.S. Department of Labor. The SSA compares the CPI-W for July, August and September of one year to the same period the year before. The average percentage change in the index over those three months determines the amount of the COLA.

Good explanation. Thanks.

Just out of curiosity, and maybe because I'm a glutton for punishment, I was looking at the US Bureau of Labor Stats info on CPI. Shows price of gasoline down 15.3%. Pretty good until you consider that is 15% down from a per gallon price that is 150% what it was in 2020 -- at least in my neck of the woods.

Social Security Cost of Living Increase!?

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