Social Security Benefits to Go up by 1.7 Percent

abcnews ^ | Oct 22, 2014 | STEPHEN OHLEMACHER

[Brother Cracker]

Millions of older Americans who rely on federal benefits will get a 1.7 percent increase in their monthly payments next year, the government announced Wednesday.

It's the third year in a row the increase will be less than 2 percent.

The annual cost-of-living adjustment, or COLA, affects payments to more than 70 million Social Security recipients, disabled veterans and federal retirees.

[mylife]

That sucks.

[SaxxonWoods]

“Federal benefits? It’s OUR money.”

Technically all federal benefits come out of “our” money. Social Security’s structure was changed from individual accounts to a tax long ago. You have no rights to any certain amount based on what you paid in, and you have no “account” with the feds. You get whatever the govt decides you will get.

Social Security is just another wealth redistribution scheme now. Lower income people get a larger benefit percentage payout than those who paid in much more.

[EDINVA]

well, IIRC, there was a 2 year period when there was no increase. Memory is that there was a significant increase for 2008; then everything tanked late ‘08, and for the next year or two there were no increases. These 1.5 and 1.7% increases are better than nothing, I suppose. All that really does is to cover the increase in medicare payts. So, basically, it’s a wash.

[SaxxonWoods]

This is also why inflation must be held down very low, at least “reported” inflation. Higher reported inflation would mean larger cola adjustments and the system would go broke even faster.

[The_Republic_Of_Maine]

"It's the third year in a row the increase will be less than 2 percent. "

and for the three years before that there was a zero cola.

[Brother Cracker]

http://www.mysanantonio.com/business/business_columnist/social_security_and_you/article/Medicare-Part-B-costs-keeping-status-quo-in-2015-5830634.php

[TomGuy]

I have not seen any info on whether the Medicare premium is remaining the same or increasing.

It usually increases by about 1/2 of the SS increase. The gov giveth; the gov taketh away.

[Fresh Wind]

I hear the chocolate ration is being raised from 30 to 20 grams per week!

[Brother Cracker]

http://www.mysanantonio.com/business/business_columnist/social_security_and_you/article/Medicare-Part-B-costs-keeping-status-quo-in-2015-5830634.php

[fatnotlazy]

Thank you. I already know my supplemental is going up $87 a month. Guess I’ll be shopping for a new plan.

[Steve_Seattle]

I retired at 62, so my increase will only be about $30 per month. But just three months ago, my property taxes went up $45 a month. And next week I’m expecting to find out that my medical premium will go up by $50-80 per month in 2015. And the city has already announced 4% increases in water and power rates. For years, these 2% -3% inflation figures have been a fraud. So in just those three areas I’m looking at a probable increase of $100-$150 per month.

[kenmcg]

“I have not seen any info on whether the Medicare premium is remaining the same or increasing.”

You can bet it’s going up, but they’ll tell you after the Nov. election.

[ontap]

And quite coincidentally our Medicare will increase the same amount!!!

[Sacajaweau]

Medicare remains the same. But my advantage plan went from $40 a month to 99.60 a month...and that's on top of the $105 they take directly out of my SS check.

I can't afford that increase and have to change plans. The deductibles are huge....and would render me "broke".

[Brother Cracker]

http://www.aarphealthcare.com/medicare/medicare-supplement.html?SourceCode=7P5&xOver=Over&utm_medium=USEM&utm_campaign=7P5&utm_source=AARP&utm_content=MedicareProd&utm_term=Primary_LP_Medicare_Supplement_Product_Page&c3=SEM-Unbranded-Medicare_Prod

[MrB]

Actually, the true fact of the matter is that SS transfers money from young minority men (those who are working) to old white women.

This is simply due to mortality rates.

[fatnotlazy]

Thank you!

[Sacajaweau]

The premium remains the same for 2015...$104.90.

[Sacajaweau]

Yes...this time of the year because they’re looking for inflation numbers of the previous 3 quarters.

[Brother Cracker]

AARP does not raise rates based on age but only if they raise rates for the whole “group”. This is not the case for most supplement plans. Look at AARP Plan N.