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Social Security COLA is 2.3% for 2008

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    #1

    Social Security COLA is 2.3% for 2008

    On October 17, 2007, the Social Security Administration announced that the latest COLA is 2.3 percent for Social Security benefits and SSI payments. Social Security benefits will increase by 2.3 percent beginning with the December 2007 benefits, which are payable in January 2008.

    In a separate announcement the SSA announced that the "standard" Medicare Part B premium will be $96.40 in 2008, an increase of $2.90 from 2007's premium of $93.50. The premium for persons with AGI above certain levels will be higher ... a change that was initiated beginning with the year 2007.
    Roland Slugg
    "I do what I can."
    Tags: None
    #2
    Government inflation rate

    As usual, things will be based on the government's unrealistic inflation rate. Everyone must have food and energy, things that are going up rapidly. However, these are not included when they figure inflation. If I could pay my bills with the same fantasy rates as the govt. uses, I would not owe nearly as much.:-(

    LT
    Only in government or politics is a "cut in spending" really an increase. It's just not as much of an increase as they wanted it to be, therefore a "cut".

    Comment

      #3
      Actually the SS COLA is based on an unrealistic assumptions, but has historically been overstated, with benefits increasing at a greater rate than inflation, rather than at a lesser rate. Its one of the problems with the system, and one (amoung many) that are causing the system to be going broke.

      Comment

        #4
        Originally posted by joanmcq View Post
        Actually the SS COLA is based on an unrealistic assumptions, but has historically been overstated, with benefits increasing at a greater rate than inflation, rather than at a lesser rate. Its one of the problems with the system, and one (amoung many) that are causing the system to be going broke.
        Joan,

        I would like to see where you are getting this information. I haven't looked at the actual figures, but I cannot remember in the past several years where the cola has been anywhere near the ACTUAL rate of inflation. It has been artificially LOW, since they don't consider the real inflation. Even the rise in medicare premiums has been at or above the cola rate.

        And I thought one of the major things breaking the system was the way they keep adding programs to the system that were never intended to be paid from the system. It's easy for a politician to give away money that was never his to begin with, only being confiscated from taxpayers to redistribute to gain the most votes.

        LT
        Only in government or politics is a "cut in spending" really an increase. It's just not as much of an increase as they wanted it to be, therefore a "cut".

        Comment

          #5
          watch out for the "thread police"!

          somebody may get offended that you're carrying on too personal or off-topic a discussion and turn you in.

          Comment

            #6
            Believe it or not

            I actually thought of that, but posted anyway. Leave it to you "Tarheels" to catch me.:-)
            Only in government or politics is a "cut in spending" really an increase. It's just not as much of an increase as they wanted it to be, therefore a "cut".

            Comment

              #7
              Well, and then there is the mixing of the general budget with the SS, which allowed SS to be raided for every other program in the book....

              I actually don't have a cite for my comment; its one of those things I read in an analysis somewhere....I believe it's tied to the wage base, and not the inflation rate, which causes SS to rise artificially high during times of wage inflation.

              I'm not sure of the 'official' rate of inflation right now, but do know the prices in my local grocery store seem to have jumped quite a bit in the last month or two. Gas, well that's been all over the place recently....and housing is deflating quite rapidly in my area!

              Comment

                #8
                inflation

                Originally posted by joanmcq View Post
                Well, and then there is the mixing of the general budget with the SS, which allowed SS to be raided for every other program in the book....

                I actually don't have a cite for my comment; its one of those things I read in an analysis somewhere....I believe it's tied to the wage base, and not the inflation rate, which causes SS to rise artificially high during times of wage inflation.

                I'm not sure of the 'official' rate of inflation right now, but do know the prices in my local grocery store seem to have jumped quite a bit in the last month or two. Gas, well that's been all over the place recently....and housing is deflating quite rapidly in my area!
                I had always thought that the benchmark inflation rate SSA used was based on the
                previous 12 months, e.g. from October 1, thru Sep 30th. But NO! I assumed wrongly.
                Today I learn that their rate is based only upon the previous THREE months data,
                adjusted for annual rate of course.

                Well, at least my increase will buy (almost) buy me an extra bottle of Dalmore Scotch
                each month.
                ChEAr$,
                Harlan Lunsford, EA n LA

                Comment

                  #9
                  Ahhh, quitcherbichin'.....at least you are assured of GETTING SS. I don't even count it in my retirement calculations...although if medicare doesn't exist in 17 years, I'm up a creek.

                  Comment

                    #10
                    Let the record show:

                    Originally posted by joanmcq View Post
                    Ahhh, quitcherbichin'.....at least you are assured of GETTING SS. I don't even count it in my retirement calculations...although if medicare doesn't exist in 17 years, I'm up a creek.
                    I have absolutely no complaints atall. I draw it, yes, but don't need it.
                    My point is that my clients who do need it, aren't getting enough of an
                    increase.
                    ChEAr$,
                    Harlan Lunsford, EA n LA

                    Comment

                      #11
                      A little different than my dad...he lived on his SS and LTC payments....what he didn't need were the RMDs from his IRA!

                      Comment

                        #12
                        Social Security COLA calculation

                        Originally posted by ChEAr$ View Post
                        I had always thought that the benchmark inflation rate SSA used was based on the previous 12 months, e.g. from October 1, thru Sep 30th. But NO! I assumed wrongly. Today I learn that their rate is based only upon the previous THREE months data, adjusted for annual rate of course.
                        Your original understanding was correct. The annual Social Security COLA calculation is based on the increase in the Consumer Price Index (CPI-W) from the third quarter of 2006 through the third quarter of 2007.

                        Source: http://www.ssa.gov/pressoffice/colafacts.htm This site also contains a variety of other data that may be useful or interesting to some.
                        Roland Slugg
                        "I do what I can."

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