2023 (COLA)

[Tomanyiron]

2023 (COLA) To Be Announced Today (Thu 10/12)
"Tens of millions of older Americans are about to get what may be the biggest raise of their lifetimes.
On Thursday, the U.S. government is set to announce how big a percentage increase Social Security beneficiaries will see in monthly payments this upcoming year. It’s virtually certain to be the largest in four decades. It’s all part of an annual ritual where Washington adjusts Social Security benefits to keep up with inflation, or at least with one narrow measure of it."
https://news.yahoo.com/explainer-huge-j ... 19050.html

https://www.myfederalretirement.com/fer ... ola-watch/

[bloobs]

8.7% highest in 40 years. I hope you retirees are happy and attribute this win accordingly

[Tomanyiron]

... attribute this win accordingly

High inflation = higher COLA
More retirement check, but not enough to cover higher prices.
I think the "Catch 22" rule was written for exactly this type thing.

[bloobs]

... attribute this win accordingly

More retirement check, but not enough to cover higher prices.

How did you quantify that 8.7% is not adequate for you? What is your adequate value?

Personally, according to my 2021 spending baseline, 2022 has cost me ~5-6% more than last year so far. As a non-retiree, the proposed 5% COLA would almost cover that.

[md2018]

Hmm, just my luck, I turn 62 in Nov 2023, so my SS will start in Dec, 2023 and my OPM retirement does not get a scheduled cola until I turn 62. So I’m guessing I might get 1/12 of the scheduled increase for 2023. And by 2024 hopefully inhalation is under control but the cola will probably be much lower.

[12squared]

And by 2024 hopefully inhalation is under control but the cola will probably be much lower.

Don't hold your breath!

[bloobs]

Md
New federal retirees may be the fortunate ones in the coming recession/deflation of the next 2,3,4+ years.

1. The coming unemployment crisis will affect you zip
2. You get a massive COLA this year that will carry over in future years even if there is uncontrolled global deflation, causing deflationary pressures dropping the prices of both staples (food, housing) and discretionary (vacations, RVs/boats, Lexus', Cialis prescriptions) expenses.

[jimcasada]

https://www.fedweek.com/fedweek/january ... -for-fers/

[IRQVET]

... attribute this win accordingly

High inflation = higher COLA
More retirement check, but not enough to cover higher prices.
I think the "Catch 22" rule was written for exactly this type thing.

Took the words right out of head.

[12squared]

https://www.fedweek.com/fedweek/january ... -for-fers/

Looks like the second year that the pension COLA is about twice that of the general pay increase. If inflation keeps running well above 2% maybe it's better to retire earlier than later?

[jimcasada]

I don't think that it works quite like that. If you wait to retire sometime after the end this year, you'll still should get the higher rate set by FERS or CSRS. Please correct me if I'm wrong.

[Optimus187]

FYI

Seniors will receive a large Social Security benefit increase due to the annual cost of living adjustment, which is based on the inflation rate. President Nixon in 1972 signed into law automatic benefit adjustments tied to the Consumer Price Index. Pub. L. No. 92-336 (1972).

Lol

[md2018]

https://www.fedweek.com/fedweek/january ... -for-fers/

Looks like the second year that the pension COLA is about twice that of the general pay increase. If inflation keeps running well above 2% maybe it's better to retire earlier than later?

Just remember that you will not get a COLA once you retire until after you turn age 62. And the cola is based on whatever the cola for that year is set at.

[Tomanyiron]

8.7% highest in 40 years. I hope you retirees are happy and attribute this win accordingly

NOT POLICICAL, JUST FACTS
Nov. 1, the White House tweeted that Social Security beneficiaries are getting their biggest increase in monthly Social Security checks in 10 years “through President Biden's leadership.”
From CNN: President Joe Biden keeps touting the size of next year’s increase in Social Security payments.
Biden doesn’t explain that the reason the 2023 increase will be unusually large is that the inflation rate has been unusually large. Nor was that context included in a misleading post from the White House’s Twitter account on Tuesday
"No, President Biden is not directly responsible for largest Social Security benefit increase in 10 years
The White House credited Biden for Social Security’s largest benefit jump in a decade, but the annual COLA is actually based on a formula that adjusts for inflation."
https://www.cnn.com/2022/11/02/politics ... -inflation

[Optimus187]

8.7% highest in 40 years. I hope you retirees are happy and attribute this win accordingly

NOT POLICICAL, JUST FACTS
Nov. 1, the White House tweeted that Social Security beneficiaries are getting their biggest increase in monthly Social Security checks in 10 years “through President Biden's leadership.”
From CNN: President Joe Biden keeps touting the size of next year’s increase in Social Security payments.
Biden doesn’t explain that the reason the 2023 increase will be unusually large is that the inflation rate has been unusually large. Nor was that context included in a misleading post from the White House’s Twitter account on Tuesday
"No, President Biden is not directly responsible for largest Social Security benefit increase in 10 years
The White House credited Biden for Social Security’s largest benefit jump in a decade, but the annual COLA is actually based on a formula that adjusts for inflation."
https://www.cnn.com/2022/11/02/politics ... -inflation

Attribute it accordingly