cancel
Showing results for 
Search instead for 
Did you mean: 
     
8 Replies
Highlighted
Frequent Contributor

Re: ARTICLE ON 2020 SS COLA

       marymary. -  I suppose most have lost sight of the original acts’ purpose, to be a little extra addition to your savings in your retirement. If you have no savings you would end up like that teacher? living in the chicken coop in Kansas? My chicken coop has granite counter tops so I’am grateful for any help when my personal inflation rate is about 2.5%. After all leftovers go to heirs or LTC. Of course they could raise the Medicare premium.......

        Maybe the Medicare premium stays as is for now. The future is looking brighter because Elizabeth Warren might save us all. Lol. Next year takes another one off the ledger before we become one with the cosmos. Others may not be as well off as us because we actually have savings and a retirement portfolio. That’s pretty bright isn’t it? 

        

Highlighted
Frequent Contributor

Re: ARTICLE ON 2020 SS COLA

It’s times like this I appreciate my dividend increases which are not limited to a 1.6% cola. 3 of my stocks jacked up their dividends in July  by $3000 a year (6x my SS cola increase) which will be taxed at 0 or 15% unlike SS which is taxed at ordinary tax rates. Still have 3 more months for other dividend increases.

 

Highlighted
Contributor ○

Re: ARTICLE ON 2020 SS COLA

We should not depend upon SS.

Gabe

Highlighted
Frequent Contributor

Re: ARTICLE ON 2020 SS COLA

I read it this morning. It says that the COLA will be 1.6% that is not bad considering the inflation rate and the interest rate. If there is no increase in the Medicare premium, it is fine. Gas prices have fallen recently. I had it today for $3.12. That is a bargain in my neighborhood.

I don't think that people should complain abut this.

0 Kudos
Highlighted
Frequent Contributor

Re: ARTICLE ON 2020 SS COLA


@ECEPROF wrote:

I read it this morning. It says that the COLA will be 1.6% that is not bad considering the inflation rate and the interest rate. If there is no increase in the Medicare premium, it is fine. Gas prices have fallen recently. I had it today for $3.12. That is a bargain in my neighborhood.

I don't think that people should complain abut this.


Depends on how much income you receive. Bottom 33% of retirees receive 90% or more of their income from SS.1.6% increase in annual $12000 SS benefits is $194 which don’t buy much.

Average SS cola increase over last 10 years is 1.3% including 3 years with 0% increase and 0.3% in another.

0 Kudos
Highlighted
Contributor ○○○

Re: ARTICLE ON 2020 SS COLA

Some random thoughts:

As Steelpony points out, a lot of people have forgotten, or just never understood in the first place, that SS was meant as a bare-bones supplement so that a person would have something in their old age.  It was never designed or meant as some sort of universal retirement plan, although by default that is, to a degree, what it has evolved into.  

For all of its faults, when you look at what SS was designed for, it is remarkably successful.  It is literally all that stands between millions and absolute, abject poverty.  

We can debate whether or not the COLA is adequate, but at least there is a mechanism for some sort of inflation index, and a little bump in the check is better than none.

I started drawing SS at age 62, first deposit in Nov 2017.  It has been a lifesaver for me.  I retired on a small annuity, and it was a struggle from one month to the next.  SS has made all the difference in the world.  

Two thumbs-up for Social Security!

Highlighted
Frequent Contributor

Re: ARTICLE ON 2020 SS COLA

Nice post, mlott1.  Thanks for keeping it real.

Social Security, a TIAA annuity, and Medicare made for a very comfortable retirement for my single mom (may she rest in peace).

Bob

P.S. to Nat: that gas sounds like a Chicago price.  I paid $2.42 yesterday at Costco. 

0 Kudos
Highlighted
Frequent Contributor

Re: ARTICLE ON 2020 SS COLA

 

Mlott1

As Bob said, that is a good post. I also had a first few years that I managed because I was paying all of my TCRS income to pay the federal taxes for ROTH conversion. So, SS was the main source for me also during the first four years after retirement.

Intruder

"Average SS cola increase over last 10 years is 1.3% including 3 years with 0% increase and 0.3% in another."

My TCRS COLA is even worse than this and always less than the COLA for SS. That is why I always feel that I made a mistake back in 2005 and should have gone through Div approach. Now, it is too late. USMV increased the div the third quarter div by 16% over the same quarter last year. I love that. No body gave me a 16% increase ever except when I moved from one university to another. 5-Year average increase per year seems to be around 7.5% according to Seeking alpha. That means that your pay check through divs will double every 10 years. That does not happen in any job.

Bob:

Yes, there are three gas stations inside the loop nearby. They charge that much. There are some even outside the loop in the west side that charge even more. My son also gets the gas from COSTCO. I do not know the price there because I do not go there.

0 Kudos
Announcements