General Discussion

RKP5637

(67,109 posts) Wed Oct 19, 2016, 02:31 PM Oct 2016

Social Security Beneficiaries to See Paltry Increase in 2017

It's getting hard to live, even if you have a little supplemental income when old.

http://www.aarp.org/work/social-security/info-2016/cola-raise-smallest-benefit-adjustment-since-1975-ea.html?cmp=EMC-DSO-NLC-RSS---CTRL-101916-P1-1528217&ET_CID=1528217&ET_RID=8838212&encparam=w5Tt7zh7bcf5yuO+7uWvmYn2dNXf72Yprhl3yHZ1KqU=

This small sum may be eaten up by higher Medicare premiums

Social Security Beneficiaries to See Paltry COLA Increase in 2017
This change will affect about 12 million of the 173 million workers who pay into the Social Security system.

Benefits for more than 60 million Social Security recipients will go up next year by a mere 0.3 percent, the Social Security Administration announced Tuesday.

This is the smallest cost-of-living adjustment (COLA) since automatic raises began in the mid-1970s. And it comes after recipients received no bump up in benefits for 2016 because inflation was so low.

For retired workers the average monthly benefit in January will go up $5 to $1,360. But beneficiaries will likely find this small sum eaten up by higher premiums for Medicare Part B, which covers doctor and outpatient hospital visits, experts say.

8 replies

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Social Security Beneficiaries to See Paltry Increase in 2017 (Original Post) RKP5637 Oct 2016 OP

Thanks. Better to know as far in advance as possible. nt Buns_of_Fire Oct 2016 #1

Why the decrease? Who voted for that? (ntxt) scscholar Oct 2016 #2

No voting necessary. It's a nice, cut-and-dried, sterile formula. Buns_of_Fire Oct 2016 #3

Just to be a jerk, remember all criticism over chained-CPI. If it had been in place, the COLA Hoyt Oct 2016 #4

Ouch. And when Obama considered it ... many on DU wanted him crucified. JoePhilly Oct 2016 #5

EXACTLY. Thanks for noticing. Things really aren't simple. And Obama wanted to Hoyt Oct 2016 #7

And yet former Wells Fargo CEO flees with 200 million dollars in compensation. Rex Oct 2016 #6

Definitely two different Americas. n/t RKP5637 Oct 2016 #8

Buns_of_Fire

(17,180 posts)

1. Thanks. Better to know as far in advance as possible. nt

Reply to RKP5637 (Original post)

Wed Oct 19, 2016, 03:11 PM

Oct 2016

scscholar

(2,902 posts)

2. Why the decrease? Who voted for that? (ntxt)

Reply to RKP5637 (Original post)

Wed Oct 19, 2016, 04:09 PM

Oct 2016

Buns_of_Fire

(17,180 posts)

3. No voting necessary. It's a nice, cut-and-dried, sterile formula.

Reply to scscholar (Reply #2)

Wed Oct 19, 2016, 05:24 PM

Oct 2016

What gives? Actually, there's no mystery to it. The yearly decision on cost-of-living hikes is based on a simple calculation. Here's how it works:

Social Security relies on a gauge of inflation known as the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The index tracks monthly price changes in about 80,000 consumer items — everything from gas, sweaters, jewelry and breakfast cereal to pets, haircuts, airline fares and prescription drugs.

In the fall of each year, the U.S. Bureau of Labor Statistics determines the CPI-W for the third quarter. Officials then compare it with the CPI-W for the third calendar quarter of the last year in which a cost-of-living adjustment (COLA) was awarded. If the comparison shows prices have gone up between those third-quarter periods, Social Security grants a cost-of-living hike. Increases are rounded to the nearest 10th of a percent and paid starting in January.

http://www.aarp.org/work/social-security/info-2016/small-2017-cola-increase-for-social-security-recipients.html?intcmp=AE-RET-SOSC-IL

Hoyt

(54,770 posts)

4. Just to be a jerk, remember all criticism over chained-CPI. If it had been in place, the COLA

Reply to RKP5637 (Original post)

Wed Oct 19, 2016, 07:08 PM

Oct 2016

would have been more than double what we got. I know, historically, the chained-CPI was slightly less, but not always. Besides, $12/month is not much better than $5.