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Social Security Benefits to Raise 2.2% in 2018

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    2.2% increase to Social Security benefits equates to about $30-35 more per month in every single person's pocket that gets benefits. Sure that's not a ton of money still. But for those living on a fixed income budget, that's certainly welcome news. Annually, it's about an extra $360-420/year for everyone. Not too bad.

    And it's also the best cost-of-living increase the program has seen % wise in the last 6 years. Way better than this year, with a very small 0.3% raise. This one is over 7 times that.

    So good news, though this is just a prediction based on projected COL and whatnot. The exact % of increase will be officially announced in October, so stayed tuned.

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    J.K.Logic Wrote:

    2.2% increase to Social Security benefits equates to about $30-35 more per month in every single person's pocket that gets benefits. Sure that's not a ton of money still.

    So does that also increase what is coming out of every single person's pocket who isn't receiving benefits by $30 -$35 more?
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    JFoster Wrote:
    J.K.Logic Wrote:

    2.2% increase to Social Security benefits equates to about $30-35 more per month in every single person's pocket that gets benefits. Sure that's not a ton of money still.

    So does that also increase what is coming out of every single person's pocket who isn't receiving benefits by $30 -$35 more?

    Not for everyone. But for those that make over $127,200/yr they will probably end up paying a bit more to fund the program, as the maximum taxable earnings on Social Security payroll taxes will probably slightly increase.

    Also the full retirement age is going up again, by 2 months in 2018.

    So combining those two factors makes it pretty easy to see how SS could afford the increase. Though also to be fair, it's not a 'raise', it's a cost of living adjustment, to keep up with inflation.

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    The biggest Social Security change in 2018 is flying under the radar

    Looks like it officially will be a 2% cost of living increase. That article is worth reading too, especially if you are close to retirement age, and/or if you have Medicare Premium B deducted from your monthly SS benefits, as there seem to be some important possible changes to your bottom line.

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    Personally I'd rather NOT receive it as every time we get an increase MY income actually goes DOWN! You wonder how that is possible, simply because over the years I've been able to get a voucher and now pay 30% of my income for rent. The agency that gives the voucher still take 30% of whatever I receive and Medicare goes up which I HAVE to pay for despite the fact that I get Medicaid! It IS very EXPENSIVE to live in Massachusetts and the COST LIVING is well OVER the small amount the government gives so in the end I have LESS money than I did the year BEFORE. I personally think we should get REAL cost of living increases based on the cost of living IN THE STATE WE RESIDE and not one cost of living for the whole country. The cost of living in Massachusetts is VERY different from the cost of living in Missouri for example!
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    Maronita1 Wrote: I personally think we should get REAL cost of living increases based on the cost of living IN THE STATE WE RESIDE and not one cost of living for the whole country. The cost of living in Massachusetts is VERY different from the cost of living in Missouri for example!

    Interesting point. To my mind, that would mean an entire overhaul of the way Social Security works though. Because it's a national program, they take the national average.

    So if the payout is based off of where you live for COL increases, the amount of SS they take out of your check while you pay on it your whole working life would have to be different depending on the location you live in at the time. And that could get messy. What if people lived in the cheapest COL area to avoid paying higher SS taxes, and then when they retire move to a higher COL area and get more than the actually put in? Or something like that.

    I think that would be the fundamental problem with a national program adjusting for every individual's specific COL increase. That would be much more possible if SS benefits were run by the states only. And then I'm sure it would be much harder for people to freely move to wherever they wanted. Might be wrong on that, just seems it would make it much more complicated.

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    I'm NOT saying when they DETERMINE your benefit that it should matter ONLY the cost of living increase. So if the cost of living increase is say 5 % in Massachusetts you get 5 % where IF you are living in Missouri their increase was only 1 % you only get 1% rather than an across the board average. SSA is giving 2% this year and IMHO it is unfair to give someone a 2% increase if the cost of living where they live is LESS than 2%.