Inflation may hit Social Security recipients twice

[mystery-ak]

Updated on 6 hours ago
Inflation may hit Social Security recipients twice
Record-high cost-of-living adjustment is a 'no-win' situation for millions of Social Security recipients
By Megan Henney FOXBusiness

Scorching-hot inflation is inflicting financial pain on millions of U.S. households, but the rising price of everyday necessities has squeezed one group in particular: retirees living on a fixed income.

Although Social Security recipients receive a cost-of-living adjustment, or COLA, that is indexed to inflation, the amount of benefits exempted from tax has remained unchanged for decades. Since 1984, retirees have owed taxes on their benefits if their income – including their Social Security payments – is more than $25,000 if they are single or $32,000 if they are a married couple.

Individuals who earn more than $34,000 and couples who earn more than $44,000 can be taxed on up to 85% of their benefits.

Now, experts say the hottest inflation in a generation could ultimately push more seniors into higher tax brackets as a result of what's likely to be a record-high cost-of-living increase.

The Senior Citizens League, a nonpartisan group that focuses on issues relating to older Americans, estimated last week the COLA could be as high as 10.5% after June inflation data showed consumer prices soared 9.1% from the previous year, the fastest year-over-year jump since 1981. An increase of that magnitude would raise the average retiree benefit of $1,668 by about $175.10 per month, the group said.

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https://www.foxbusiness.com/economy/inflation-may-hit-social-security-recipients-twice

[catfish1957]

I just found out how badly screwed we are on Medicare for just turning 65.

Extra $1000 a month, on top of existing medicare premium?  as just an income adjustment amount.   I thought these were supposed to be called "benefits"

 

[GtHawk]

I just found out how badly screwed we are on Medicare for just turning 65.

Extra $1000 a month, on top of existing medicare premium?  as just an income adjustment amount.   I thought these were supposed to be called "benefits"

 

I guess I should consider my self lucky that the Ramalamadingdong administration bankrupted me before I was forced into a disability retirement. My advantage plan costs me about $150 or so a month and covers most of my meds and medical, I still have to pay IRS blackmail every year though.

The Senior Citizens League, a nonpartisan group that focuses on issues relating to older Americans, estimated last week the COLA could be as high as 10.5% after June inflation data showed consumer prices soared 9.1% from the previous year

Isn't that just grand the COLA could be 10.5% next year, while inflation is climbing and we all know that 9.1% is a low ball BS number. So with 10.5% COLA and of course the coming increase in my monthly Medicare premium, I can look forward to another year of cutting back, what? We are running out of things to cut back on! I bet the GD'mned illegals are getting a much bigger increase in their taxpayer freebies than us seniors!

[Texas Yellow Rose]

I guess I should consider my self lucky that the Ramalamadingdong administration bankrupted me before I was forced into a disability retirement. My advantage plan costs me about $150 or so a month and covers most of my meds and medical, I still have to pay IRS blackmail every year though.

Ramalamadingdong Administration How totally appropriate!!