Perfect Timing – No COLA for Me

There comes a time in our lives when (if we’re lucky) we can hang up our toolbag and start to live the life of leisure. This is my year to put everything in motion to allow me to begin my retirement in just a few weeks. I have pulled all the handles to make things happen – it’s too late for me to stop the train from leaving the station now.

My first Social Security check will be deposited this Thursday.

Now, comes word that the Social Security Administration has suspended Cost Of Living Adjustments (COLA) for the next two years. Oh, by the way, they aren’t going to suspend premium increases for Medicare Part B.

From Yahoo:

Millions of older people face shrinking Social Security checks next year, the first time in a generation that payments would not rise. The trustees who oversee Social Security are projecting there won’t be a cost of living adjustment (COLA) for the next two years. That hasn’t happened since automatic increases were adopted in 1975.

By law, Social Security benefits cannot go down. Nevertheless, monthly payments would drop for millions of people in the Medicare prescription drug program because the premiums, which often are deducted from Social Security payments, are scheduled to go up slightly. …

Advocates say older people still face higher prices because they spend a disproportionate amount of their income on health care, where costs rise faster than inflation. Many also have suffered from declining home values and shrinking stock portfolios just as they are relying on those assets for income.

“For many elderly, they don’t feel that inflation is low because their expenses are still going up,” said David Certner, legislative policy director for AARP. “Anyone who has savings and investments has seen some serious losses.”

Hat Tip – Captain Ed Morrissey.