Keep the big picture in mind when thinking about a 2019 Social Security COLA

Those of us collecting Social Security want both small increases in the things we buy and a large increase in the Social Security benefits we receive. Think about that for a second and you will realize that can’t happen and if it did, Social Security would go bust sooner than it is on track to do so.

So, the next COLA must reflect changes in the CPI even if it does not fully match our spending habits. Nobody is stealing Social Security money, nobody is trying to squeeze seniors and we have not paid for any COLAs; that’s the job of Americans who are working and paying taxes today. ☹️

Con­sumer in­fla­tion re­cov­ered over the past year from the near-zero read­ings recorded in 2015, when en­ergy prices plunged. But there’s lit­tle sign that prices are poised to break sig­nif­i-cantly above the 2% an­nual in­crease tar­geted by the Fed­eral Re­serve. Source: Wall Street Journal 2-7-18

Here is the reality, a 2019 COLA will likely be in the 2% range. What you really need to worry about is how much your Medicare Parts B and D will increase next year to offset any COLA.

However, the last Medicare Trustees Report July 2017 estimates no increase in Part B premiums for 2019 and a modest increase in Part D