Cola Time Again

[JR Reihs]

It's that time of the year again......the official number would have already been out, but due to the congressional finger licking, the COLA numbers are forthcoming.

I am seeing from 1.3 to 1.5%......I know it ain't much, but it is a bird in hand.

Edited October 13, 2013 by JR Reihs

[free_spirit_etc]

http://www.ssa.gov/cola/

"The purpose of the COLA is to ensure that the purchasing power of Social Security and Supplemental Security Income (SSI) benefits is not eroded by inflation. It is based on the percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the third quarter of the last year a COLA was determined to the third quarter of the current year.

The CPI-W is determined by the Bureau of Labor Statistics in the Department of Labor. By law, it is the official measure used by the Social Security Administration to calculate COLAs."

[iceturkee]

I read an article on the internet this morning that said unknown because of what you said. However they stated 1.5% looked about right.

vet12

i did read an article sunday that said the same thing.

[john999]

Federal flood insurance in my area is set to increase 1000% over the next few years. I don't think 1.5% increase in COLA will help much. If you live in a flood plain or near the water you probably know this. I live in Tampa Bay area and it is killing real estate sales in most expensive areas where people really want to live.

[71M10]

I think that 1000% increase is twisted up into an analysis that the Flood insurance premiums wern't covering the insurance payouts. Would people really want to live in these places if they couldn't get insurance on their property? However, with the rates being jacked so high so fast, maybe a program should be put in place to offer a property swap, so that homeowners (not investors) could opt out of the area without losing a major asset. An asset that is often used to fund retirement for many people.

Edited October 14, 2013 by 71M10

[john999]

71M10

In S. Tampa where I live in a modest 64 year old house the neighborhoods that have stood for 75 years around the Tampa Bay will become suddenly unsellable and unaffordable for anyone with a mortgage. I was using this as an example of how inadequate a 1.5% COLA for anyone depending on a federal pension and SSA or a disabled vet. My SSA and 30 year federal pension is less than my VA compensation. I depend on COLA to stay somewhat current with cost of living. If I did not have investments built over 35 years I think my wife and I would be hurting one day. The federal pension is my disability pension since I have not worked in 12 years. When I was a postal worker I got COLA plus contractual raises and very cheap insurance. Because I worked double Sundays and had 40 hours of night pay I was making almost 50 grand in 2001. All I kept was my base pay plus COLA'S. This equals a crummy $1200 a month pension. I think I would need at least 5-6% cola a year just to keep up.

John

[71M10]

John, I understand your dilema. Just like the VA the Federal Flood Insurance Program is broken. Unfortunately, the proposed government fix will hurt individuals (not corporations). COLA already is so detached from the reality that retirees and regular people experience it is laughable(not considering health care costs and stripping out fuel) and the proposal to move to a chained CPI will just make it worse.

Keep on Keeping ON!