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Old 10-20-2009, 09:06 PM
JS1
 
1,898 posts, read 6,130,580 times
Reputation: 1588

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Quote:
Originally Posted by Cunucu Beach View Post
They did that a few years ago to keep the inflation index artificially low. This little deception slipped by most people.
No, it's because those prices can vary a lot. If SS could go down when there is deflation, then it wouldn't matter if food and energy were included. But since the SS COLA can't be negative under current law, it makes no sense to award increases only, but no decreases.
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Old 10-20-2009, 10:57 PM
 
8,070 posts, read 7,325,852 times
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They announced a big increase in the federal health insurance premiums, 8.8%. Retirees will be hit with a premium increase if they have a secondary insurer after Medicare.

Federal employees can expect a big increase in their health care costs
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Old 10-20-2009, 11:14 PM
 
1,340 posts, read 2,494,136 times
Reputation: 760
Default yup

Quote:
Originally Posted by thrillobyte View Post
They've jimmy-rigged the COLA criteria so crookedly now (food and gas discounted indeed!) I doubt anyone will be getting an adjustment upwards for years. Quite the contrary, they just might claim deflation and start lowering monthly payments.
Bingo ! give that man a prize.
Wall St. has always hated SS,wants buy stock or die policy and what they want they get.
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Old 10-21-2009, 04:05 AM
 
71,831 posts, read 71,919,037 times
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unfourtunetly the cpi index is a price index (a manipulated one at that) but its not a cost of living index.. its used as a cost of living index but its not one itself.

to be a cost of living index it would need a few more components to it such besides just a price change.

a cost of living index would be more like price change x how many times bought x some quality index ....... obviuosly buying cheap imported jeans from kay mart will fair very different from good quality gap jeans...

perhaps you have to replace the lower quality kay mart jeans more times....

its not a debate about clothes, just an example of data needed
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Old 10-21-2009, 05:56 AM
 
71,831 posts, read 71,919,037 times
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While the price index shows deflation our own personal cost of living index is up drastically.

our rent rose just shy of 3%, my daughters tuition 6%, our health insurance 8% and we bought a new car, same exact model we had and that was up in price.. our utility company PPL got a whopping 30% increase too. phone was up and cable tv was up.. new car drove insurance up.

at least gas was down but overall this was one of our highest years for increases in cost of living.

our house in PA we own out right so differences in home costs or re-financing costs didnt apply to us either.

real estate taxes stayed the same but we get less, garbage p/u once a week, libraries closed on weekends etc, even less staff hired by the county but taxes stayed the same. thats an unmeasured cost of living increase


even my favorite brand of peanut butter shrunk the jar size.... i dont like the others so the fact they didnt shrink in size yet dosnt mean much to my index

Last edited by mathjak107; 10-21-2009 at 06:14 AM..
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Old 10-21-2009, 08:12 AM
 
Location: SW MO
23,605 posts, read 31,519,632 times
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And let's not forget that the little $250 "incentive" will NOT be factored in cumulatively the next time there is a COLA.
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Old 10-21-2009, 10:28 AM
 
48,516 posts, read 84,021,758 times
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Bascailly the cost of livng is not indexed to one area or individual.Like buying a new car. Most keep their cars ten years when retiring from what I have seen.Of course the price is gong up in ten years for the same model. If you don't budget for that new car once you paid off the old car its going to be a hit.But during those ten years the COLA adjustments will have increase income if you have them. SS is not a retirement plan but just a part of one.On a side note ;i bought a new vehicle in 2008. I had been lookig for about a year as my other vehicle was approaching ten years. I heald off because the price of the one I wanted was too high ;so just put me offf. In 2008 My wife said we needed to look agian. The price on the one eyar new car was stickered higher but I got a much lower price than the year before offers because of the economy and a 0.9% interest rate making it a much better buy than the year before. Just luck and not being a new car frantic;I guess.
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Old 10-23-2009, 08:00 PM
JS1
 
1,898 posts, read 6,130,580 times
Reputation: 1588
Quote:
Originally Posted by mathjak107 View Post
While the price index shows deflation our own personal cost of living index is up drastically.

our rent rose just shy of 3%, my daughters tuition 6%, our health insurance 8% and we bought a new car, same exact model we had and that was up in price.. our utility company PPL got a whopping 30% increase too. phone was up and cable tv was up.. new car drove insurance up.

at least gas was down but overall this was one of our highest years for increases in cost of living.

our house in PA we own out right so differences in home costs or re-financing costs didnt apply to us either.

real estate taxes stayed the same but we get less, garbage p/u once a week, libraries closed on weekends etc, even less staff hired by the county but taxes stayed the same. thats an unmeasured cost of living increase


even my favorite brand of peanut butter shrunk the jar size.... i dont like the others so the fact they didnt shrink in size yet dosnt mean much to my index
poor baby, it must be really tough being dependent on taxpayers to pay your daughter's education expenses and a new car in the same year!
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Old 10-23-2009, 08:31 PM
 
Location: Two Rivers, Wisconsin
11,724 posts, read 11,561,574 times
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Insurance is a tricky issue. I'm 62 and I received a letter my former employer they will no longer insure retirees after 65 I have to find a supplemental insurance on my own. They are going to give a small amount towards the purchase, not a check I can have, it is only to be used for the insurance.

They did assure me I am insured for the next 3 yrs. which is a relief. I'm glad I have insurance but it has gone up steadily since I took early retirement in 2002.
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Old 10-23-2009, 09:14 PM
 
48,516 posts, read 84,021,758 times
Reputation: 18050
Wait until the heathcare bill passes if you want to see people being drop by employers.
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