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Old 10-19-2016, 10:24 AM
 
2,560 posts, read 2,295,267 times
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Quote:
Originally Posted by BLS2753 View Post
As someone who derives 100% of their retirement income from a couple of federal based pensions and SS, my financial security has never been determined by the strength or weakness of the annual COLA.

I really don't understand the "pain" element some express in not getting one. At either end of the income spectrum, a COLA, or lack thereof, isn't likely to make much difference in one's quality of life.

Do I like getting COLA's? Sure, but I'm not heading to the poorhouse of pain if I don't get one.
I"m not defending COLAs because the funding levels of the pension funds are abysmal, but believe me, if you went 20 or 30 or even 10 years without a cola your pension would be cut by 30,50, or 70% in real dollars. We've had low inflation years for a long time now, but go ahead and calculate what even a 4 or 5% let alone a higher percent inflation rate would do to your pension. And I'd recommend doing that sitting down.
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Old 10-19-2016, 10:25 AM
 
2,560 posts, read 2,295,267 times
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Originally Posted by freemkt View Post
When rent consumes half your income, any piddling marginal dollars are welcome.
FREEMKT AND I AGREE ON THIS!!!! LET'S PARTY FREEMKT!!
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Old 10-19-2016, 12:26 PM
 
11,558 posts, read 12,023,335 times
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Originally Posted by freemkt View Post
When rent consumes half your income, any piddling marginal dollars are welcome.
any piddling marginal dollars received in 2017 will be grabbed by the Medicare Part B premium increase.
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Old 10-19-2016, 12:29 PM
 
106,249 posts, read 108,257,613 times
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no different then getting a raise at work and the health insurance went up . at least in this case it can't go up more than the raise. this has not been the case while working
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Old 10-20-2016, 12:59 AM
 
2,242 posts, read 2,997,340 times
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Quote:
Originally Posted by freemkt View Post
When rent consumes half your income, any piddling marginal dollars are welcome.
If rent is consuming half a retirees income, they need to make some adjustments. If their income is such that the rental market exceeds 30% of their income, they either need to move to a lower cost area, or seek subsidized housing in the current locale.

I don't know, but from your many postings, I feel your local cost of living is more of a problem for you than your income. If you are indeed a career fast food worker, the occupation is highly portable, and the associated wage would likely go much further if you can somehow relocate to an area with a cheaper housing market. You might even be surprised that you could achieve that elusive goal of home ownership.
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Old 10-20-2016, 01:09 AM
 
2,242 posts, read 2,997,340 times
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Quote:
Originally Posted by Burkmere View Post
I"m not defending COLAs because the funding levels of the pension funds are abysmal, but believe me, if you went 20 or 30 or even 10 years without a cola your pension would be cut by 30,50, or 70% in real dollars. We've had low inflation years for a long time now, but go ahead and calculate what even a 4 or 5% let alone a higher percent inflation rate would do to your pension. And I'd recommend doing that sitting down.
Don't think I have 20 years left, but I don't see a period that long with no COLA's. When you get into that scenario, you're probably looking at deflation, in which case a fixed amount would be worth more as time elapses, rather than less.

My pension is military, and by the most common definition is not a pension at all. It's part of the DoD budget, and as such there's no funding level.
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Old 10-20-2016, 07:13 AM
 
33,016 posts, read 27,392,179 times
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Quote:
Originally Posted by katie45 View Post
any piddling marginal dollars received in 2017 will be grabbed by the Medicare Part B premium increase.

If your income is low enough - and it probably is for someone who spends half their income on room rent - Medicaid pays your Part B premium. In that case, the hold harmless provision does not apply, and the full Part B premium is paid by Medicaid.
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Old 10-20-2016, 07:15 AM
 
33,016 posts, read 27,392,179 times
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Quote:
Originally Posted by BLS2753 View Post
Don't think I have 20 years left, but I don't see a period that long with no COLA's. When you get into that scenario, you're probably looking at deflation, in which case a fixed amount would be worth more as time elapses, rather than less.

My pension is military, and by the most common definition is not a pension at all. It's part of the DoD budget, and as such there's no funding level.

When rents deflate, let me know.
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Old 10-20-2016, 07:18 AM
 
33,016 posts, read 27,392,179 times
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Originally Posted by mathjak107 View Post
no different then getting a raise at work and the health insurance went up . At least in this case it can't go up more than the raise. This has not been the case while working

if your income is low enough - and it probably is for someone who spends half their income on room rent - medicaid pays your part b premium. in that case, the hold harmless provision does not apply, and the full Part B premium is paid by medicaid.
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Old 10-20-2016, 07:23 AM
 
106,249 posts, read 108,257,613 times
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we are talking regular folks earning grown up wages either working or on medicare
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