Home Forums Hunting & Shooting Hunter's Campfire Social Security 2017 raise: $3 more a month?

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. The Social 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).

How am I going to be able to spend all of that money before the next payment arrives.

Dog food at Dollar General is cheap. Taste great with a bottle of Tabasco and some onion.

I don't know but it is going to put you in a lot higher Tax Bracket

Those brain buckets at S S keep saying delay your retirement crap. Take it at 62 you don't loose anything till you get to be 77 then it is a small amount. might not live that long take it as soon as possible SCREW EM!!!!!!!!!!!!!!!!!!

screw the feds......took mine at 62.......

paid into it for nearly 45 yrs.....

Ditto...

Amen. I get in heated arguments with people that say you should wait till you are 67 to take SS. That is the plan. 5 years is a lot dead seniors with no benefits.
It is part of the calculus and your demise is something they can wager on.

more what they are hoping for.

Old white people are being replaced by influxes of illegals needing the social safety net; its not that they arent a priority, it that they are pretty much shored up through the same "Republicans want grandma to starve" mantra.

Yep, and none of the so-called experts mention that a dollar will be worth less in 5 years or the time value of money.

Thats what I did. Now to hear of this raise really lifts my spirits. I'll be in tall cotton next year!

Precisely why I never figured SS into my retirement.

There are several members here who seem to always "pooh pooh" posts about investing and the stock market as a complete waste of time. For those of us who have taken the time to learn how to use the market to plan for our financial needs when we retire or can no longer work, we consider social security as just a portion of our entire plan. As I mentioned in another thread about annuities (which also received it's share of "pooh poohs,") one of the basics of retirement planning is having enough "secure lifetime income" to cover the bare necessities of life such as food, clothing, and shelter/utilities. Social Security is one source of secure lifetime income, that may or may not cover the bare necessities. Shortfalls need to be covered by other sources of secure lifetime income, such as annuities. Stock Market portfolios are not considered secure, hence one should not count on them for secure lifetime income necessities. For those of us who did not do an adequate job of financial planning, and we find ourselves with only Social Security in retirement, then we are going to be dependent on others (family, church, local charities, a job as a Wal-Mart greeter, or AMWAY, etc) to make up any shortfalls. We can't legitimately "blame" the feds for not providing all of our required "secure lifetime income" now, can we?

my wife was commenting on this indirectly just yesterday. minimal or no s.s. increase, but can't say the same about the cost of medicare/supplement premiums. They go up yearly much more than social security.

I certainly do not feel safe with the overvalued assets in my 401k and IRA account

I assumed it would be bankrupt before I received any of MY money that I and my employer put away for MY retirement. Well, so far its still alive. I am taking mine at age 66, starting next February.
I believe it will become "means" tested eventually and productive working and saving citizens will be told, "you really don't need your SS, so we are giving it to someone who needs it."

You can whine about the supposed shortfalls of Social Security or you can take responsibility for your own financial well being. SS was never meant to cover all your needs in retirement - it is only a buffer.

Start preparing for retirement early. Own your home, eliminate debt and save like you mean it.

Are you sure you're up for that kind of fiscal responsibility?

I'm not sure I am but I'll do my best....

Thanks Uncle Sam...now all my kids will be able to attend college...

If the Government doesn't want to pay you back then they shouldn't forcibly take it from your pay. SS isn't Welfare unless you haven't paid into the system over many years.