Wild COLA prediction

[Carl the Engineer]

https://www.fool.com/investing/2022/07/23/social-security-checks-should-soar-in-2023/

Can only hope, 11.4% would be nice,

Carl

Don't morgage the farm just yet!

 

[Tbird]

From their mouth to Gods ear, I hope.

 

Quote

Barrons predicts "If inflation cools in the third quarter, the COLA could be 9.8%, The Senior Citizens League projected. If it heats up even more, the bump could be 11.4%. The inflation adjustment will be applied to benefits starting in January 2023. The last time the COLA rose by double digits was in 1981, when Social Security recipients got an 11.2% raise."

Quote

From the article

The Senior Citizens League has warned that the change could have some unwelcome consequences for beneficiaries, such as subjecting more of their benefits to federal income taxes. If you file taxes as an individual, you may have to pay taxes on part of your Social Security benefits if your combined income exceeds $25,000. For joint filers, the threshold is a combined income of $32,000. Combined income includes adjusted gross income, tax-exempt interest income, and half of your Social Security benefits.

Many Medicare beneficiaries have their Part B premiums deducted directly from their Social Security checks. This year, the Part B premium rose by 14.5%, one of the biggest increases in program history. Experts are predicting another large increase for next year, which will reduce the amount of money recipients receive in their COLA (cost-of-living adjustment).

 

[x020574]

14 hours ago, Tbird said:

From their mouth to Gods ear, I hope.

 

 

 

[x020574]

Real smooth operators aren't they?

[john999]

They won't raise the cola more than official rate of inflation and probably much less.  You just can't win in the inflation game.  My costs have gone way up and not just gas and groceries.  Everything has gone up including all my insurance premiums, utilities and even NetFlix.  Housing costs in Florida where I live are out of sight.

[MilvetHD]

I'm not one to celebrate this possibility because of what it means for those who rely exclusively on fixed incomes.

[El Train]

It's a double edge sword regardless.  Politicians think raising minimum wage helps people afford rent. Unfortunately rent goes up, food costs go up, fuel prices goes up, etc.  So what's gained?  Same with property taxes on landlords.  Passed on to the tenants.  Fuel prices raise the cost of everything.  Passed on to the customers.  It sucks, but when you have politicians who know nothing about how a business runs, how to balance a budget, or keep costs in check, we all pay.  And it sure doesn't help businesses look good when their CEO's are making millions on the backs of their own workers.  Running a small biz myself, some of my high earners make more money than me.