projected S.S. Cost of Living Raise for 2012 and how and why. (55, social security)

[howard555]

CNN reports that chances are high that S.S. beneficiaries will see no increase in their SSI benefit checks in 2011.

>>>> The official word won’t come until mid-October <<<<

when the Social Security Administration announces whether there will be a cost-of-living adjustment (COLA) for 2011.

>>>> But those who’ve crunched the numbers say there just HASN'T BEEN ENOUGH INFLATION to justify a bump in benefits.<<<<

The last time there was an inflation adjustment was in 2009:

beneficiaries got a higher-than-normal 5.8% increase because of a temporary spike in energy prices in the 3rd quarter of 2008. This year, there has been some inflation, but prices still are lower than they were in the third quarter of 2008 —

>>>> and that’s the quarter that counts. <<<<

By law the Social Security A. is required to track inflation using the most recent 3rd quarter "that led to an adjustment."

>>>> The 2011 decision will be based on the change in inflation between the "3rd quarter of 2008" & 3rd quarter of 2010.<<<<

The CBO said it expects beneficiaries will not receive a COLA in 2011

>>>> and will receive only a 0.04 % increase in 2012. <<<<

If right, that would mean a monthly Social Security check of $1,170, the average among current retirees as of June, would be the same next year, and rise by about $5.00 in 2012.

>>>> There’s a bit of bright news for high-income earners still working for the Man: If there is no COLA for 2011, that also means there would be no increase in the amount of earnings subject to the social security tax, which is currently assessed on the first $106,800 of a person’s wages.

Critics of the extra payments pointed out that Social Security benefits are:

>>>> intended to maintain purchasing power <<<<

which by the inflation measures used they have.

>>>> And benefits don’t decline when prices decline <<<<
(which happened in 2009)

» 2011 COLA Increase for Social Security Benefits in Doubt | Saving to Inve$t

[nan5623]

But the lawmakers keep on voting raises for their selves & staff.

[howard555]

Originally Posted by nan5623

But the lawmakers keep on voting raises for their selves & staff.

someone asked me why I was not going to vote in November. They said it was "my right".

Ha....and the guy that I vote for, may make it to Congress and do the opposite of why he was voted in.

If inflation stays low,
and medicare part B premiums don't rise,
and the economy avoids another recession or worse,
and interest rates stay low,
I think I can live with no COLA.

[MadManofBethesda]

Was there really a necessity to start yet another thread on this subject? There is nothing new here. In fact, there wasn't anything new in the thread you started just yesterday morning on this very same issue!

The fact that there would not be a SS COLA this coming January has been pretty much known for months and has been discussed here over and over since then.

[howard555]

the new article talked about "2012"

and

"why the basis for the COLA is the 3rd quarter of 2008".

If the new info in that article bores everyone, it will be on page 2 in a couple days.
The SSA has not made the announcement for 2011 yet, it was informative that the whole COLA is now based on the 3rd quarter of 2008 (by law), and the COLA in 2012 will be near zero as well.

[MadManofBethesda]

Originally Posted by howard555

it was informative that the whole COLA is now based on the 3rd quarter of 2008 (by law)....

I'm glad you found it informative. Especially since I had already noted this fact in your other thread yesterday. Moreover, I had included that same information in a previous thread on this very subject back in August.

This is not new info; however, if you want to continue to start threads to discuss it, be my guest.

[Bideshi]

Originally Posted by howard555

someone asked me why I was not going to vote in November. They said it was "my right".

Please go vote against the incumbent. We have to get rid of these leaches.

[Boompa]

I feel lucky to be getting anything, what with the Republicans wanting to do away with it.

[howard555]

I guess we have to hope for inflation to go up.
If it does, retirees will get a COLA.....maybe beginning in 2013.....since 2012 COLA is estimated at $5.00 or 0.4%

You can not win.
If prices for food and gas and everything else go up 3% a year, and your cost of living raise goes up 3% you are standing still. You get more, but you spend more.

[Tesaje]

Originally Posted by howard555

I guess we have to hope for inflation to go up.
If it does, retirees will get a COLA.....maybe beginning in 2013.....since 2012 COLA is estimated at $5.00 or 0.4%

You can not win.
If prices for food and gas and everything else go up 3% a year, and your cost of living raise goes up 3% you are standing still. You get more, but you spend more.

That's the purpose of the CoLA. to keep the spending power of SS even and not erode. SS was never intended as a get rich or get ahead scheme.