We would love to hear from you. Click on the ‘Contact Us’ link to the right and choose your favorite way to reach-out!

wscdsdc

media/speaking contact

Jamie Johnson

business contact

Victoria Peterson

Contact Us

855.ask.wink

Close [x]
pattern

Industry News

Categories

  • Industry Articles (21,155)
  • Industry Conferences (2)
  • Industry Job Openings (35)
  • Moore on the Market (414)
  • Negative Media (144)
  • Positive Media (73)
  • Sheryl's Articles (800)
  • Wink's Articles (353)
  • Wink's Inside Story (274)
  • Wink's Press Releases (123)
  • Blog Archives

  • March 2024
  • February 2024
  • January 2024
  • December 2023
  • November 2023
  • October 2023
  • September 2023
  • August 2023
  • July 2023
  • June 2023
  • May 2023
  • April 2023
  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • November 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011
  • April 2011
  • March 2011
  • February 2011
  • January 2011
  • December 2010
  • November 2010
  • October 2010
  • September 2010
  • August 2010
  • July 2010
  • June 2010
  • May 2010
  • April 2010
  • March 2010
  • February 2010
  • January 2010
  • December 2009
  • November 2009
  • October 2009
  • August 2009
  • June 2009
  • May 2009
  • April 2009
  • March 2009
  • November 2008
  • September 2008
  • May 2008
  • February 2008
  • August 2006
  • Retirees’ Social Security COLA raise in 2017: $3 a month?

    October 18, 2016 by Jennifer Oppenshaw

    It’s surprising that even though this year’s presidential candidates are over 65 — making them the oldest major party nominees in our nation’s history — we haven’t heard more about Social Security in the debates.

    Americans, like my own 74-year-old mother, are wondering exactly what Donald Trump and Hillary Clinton’s plans are. In the meantime, they’re anxiously awaiting word on the Social Security Cost of Living Adjustment for 2017, which could come as soon as Tuesday. Early projections peg it at 0.2%, among the smallest increases in the program’s history.

    “Last year, we didn’t have an increase,” she told me recently. It was only the third time since COLA’s inception in 1975 that has happened. “But it’s important every year because things like my rent go up, no matter what.”

    The adjustment — based on a formula tied to the consumer price index — is designed to help benefit checks for retirees, widows and the disabled keep pace with the rising costs of goods and services. TheSocial Security Trustees report in June projected the 0.2% increase for 2017, but there’s a chance it might be more than double that. Based on updated calculations that take the July and August CPI-W figures  into consideration, it may be about 0.5%. 

    “People feel a bigger COLA is better, obviously,” said David Certner, legislative policy director for AARP. “But if you’re getting a bigger COLA and prices are rising faster, you’re not necessarily better off.”

    Impact on retirees, women & workers

    Millions of Americans — from retirees to those working full-time — will be affected by the likely adjustment. Here’s how:

    • Social Security & Disability benefit checks. Those people counting on their Social Security checks are likely to see them rise by just a few dollars per month — $3 if there’s a 0.2% increase and $7 at 0.5% — for retired workers getting an average benefit of $1,341.
    • Working retirees. Also likely to be affected are those working to generate income while receiving Social Security benefits. Those who are working but haven’t yet reached their full retirement age (currently 66) can still receive full Social Security benefits so long as their income does not exceed $15,720.  But that cap would also increase with any Social Security adjustment, enabling retirees to earn more before they see a reduction in their benefits.
    • Payroll taxes paid by employees. Any adjustment will also affect the millions of working Americans who contribute to Social Security through payroll deductions. That’s now 6.2% on earnings up to $118,500 for 2016, but a higher COLA could raise this income cap.

    Women bearing the brunt

    Because they represent 57% of all Social Security beneficiaries 62 and older, women are likely to take the brunt of only a small increase.

    “Women tend to have lower Social Security benefits and are less likely to have pensions or other sources of income,” Certner said. “So, for them, the COLA is a lot more important.”

    Cindy Hounsell, president of Women’s Institute for a Secure Retirement, points out that too many women are taking benefits early out of necessity but that any increase is better than nothing.

    “Women often don’t have choices,” Hounsell said. “They have these shocks, like divorce, widowhood and loss of a job. So the minute they turn 62, they jump on it. But by the time they’re in their 70s or 80s, they’re really hurting to pay for medications. Obviously, anything helps, but it won’t be enough for the majority who don’t have enough to begin with.”

    Seniors losing buying power

    Retirees have different spending patterns than the population as a whole. Health care costs have risen two to three times the rate of inflation and impact seniors disproportionally.

    The Senior Citizens League, a non-partisan advocacy group, estimates that seniors have lost 23% of their buying power since 2000. They recommend a COLA formula based on what seniors actually spend their money on. That would more than triple the increase expected for 2017. The effort to change how the COLA is calculated isn’t gaining much headway, though. Three bills were introduced in 2015 and are sitting in committee. 

    Without some help, more aging Americans, like my mother, are being caught between their fixed incomes and rising costs for housing and medications.

    “Even a small Social Security boost would help,” she said. “That seems only fair. I worked my whole life paying into the system.”

    While neither presidential candidate, win or lose, will have to worry about paying their rent, we hope once in office they’ll think about those retirees who do.

    3 steps to make the most of Social Security:

    • Review your Social Security statement.
    • Use the Social Security Retirement Estimator to estimate your benefit check in the future.
    • Consider delaying your benefits until full retirement age (FRA). This is age 67 for those born in 1960 or after. At this time you’re entitled to full benefits. And if you wait until up to age 70, your benefit will continue to grow – 8% per year  for each full year (prorated for months).

    Jennifer Openshaw is a nationally known personal finance expert, author, and commentator.  Reach her at jennifer@familyfn.com or Twitter: @jopenshaw.

    Originally Posted at USA Today on October 18, 2016 by Jennifer Oppenshaw.

    Categories: Industry Articles
    currency