Social Security benefits going up by 5.8 percent (wife)

[gregandvicky]

The government has changed the method of calculating price increases in ways that have lowered the reported inflation rate.

The changes include measuring the cost of shelter by rental prices instead of home values, as well as giving nearly as much weight to high-ticket items such as cars and electronics as to daily necessities such as food and gasoline.

If the government measured inflation based on pre-1982 methods, it would be running at 11.6 percent right now, or 7.3 percent using pre-1998 calculations.

[Tesaje]

Originally Posted by gregandvicky

The government has changed the method of calculating price increases in ways that have lowered the reported inflation rate.

The changes include measuring the cost of shelter by rental prices instead of home values, as well as giving nearly as much weight to high-ticket items such as cars and electronics as to daily necessities such as food and gasoline.

If the government measured inflation based on pre-1982 methods, it would be running at 11.6 percent right now, or 7.3 percent using pre-1998 calculations.

Interesting. That would make it running at 1970's rates.

[cpg35223]

Yippee. The Baby Boomers are celebrating another disproportionate increase while the retirement system gets sucked dry for everybody else following afterwards. We'll be putting in money most of our working lives and never see a cotton-picking dime.

[marmac]

="and never see a cotton picking dime"----another myth

Even the "doom and gloom" people who want SS changed to privitization, say that in 2042 SS will have exhausted it's fund and the SS tax coming in will only pay 75% of current benefits.

75% of current benefits is still a lot more than nothing, and 75% would only be if nothing was done to shore it up before then.

[nightbird47]

Originally Posted by Suzanne1945

Here's the info I was given by a SS rep over the phone today.

Medicare remains @ 96.40
Beginning with January 2009 check, there will be a 5.8 percent increase
And, in 2009 you may earn up to $14,160 before giving back $1 for every $2 made over the limit.

Does this apply to the federal portion of SSI?

[Padgett2]

the increase will come in handy.

But my medicare pharmacy coverage will go from about 24.00 per month to 39.00.
The company that we went with was low at 19.95 when we first joined with a small deductable. The deductable will go up to 295.00. Since we are healthy with very little medication needs, we are thinking seriously about dropping it. My husband didn't use up this years deductable until about the middle of October. Unless he becomes ill in some way, he won't use up the deductable in 2009 at all.

[texdav]

If you drop it and have no other coverage for drugs then there is a penalty when you sign back up by how long you were out.As I recall it makes the plan mopre expensive when yoyu sign up agian by now long you were out of it;unless you had other coverage. It like any other insurance you don't just pay when you need it withoyur penalty.

[Frank_T]

And Bernacke just took part of it away by lowering the rate you get on your savings!

[laplander]

I was going to take ss at 66, which will be in July 09, will the 5.8% be figured in? Would I need to be taking ss before the end of 08 to get the 5.8% increase? I received different responses from people, i even spoke to two different ss reps. one said i need to take it before 09, the other said it would be figured in to the amount i collect in 09.

[norm]

laplander,

Your benefits will include the 5.8% increase.