Yes, We Are Getting A Raise
First raise that I have gotten in a long time. It is a rousing 2.8%. If someone receives about $2,500.00 a month that is about $800.00 to $900.00 a year. It is the biggest % increase that most retired baby boomers have ever gotten.
Cost of Living Adjustment for 2019 is the highest in seven years which leads to the raise. That little number affects 70 million people. BTW, the $2,500.00 in the previous paragraph is a little high. The average monthly payment for 2019 will be $1,461.00 per month. That will not rent a very big unit in the Bay Area, but I could live comfortably in Racine, Wisconsin with that bounty.
The Deficit Is Running $1T
Yes with a T considering the recent tax changes. This could bring on more threats to lower the payments, increase the ages to be eligible and to be eligible for full payments. Stay tuned.
All of you early sixty people, you have a big decision coming soon. Do you take the lower payments at 62, or the “full” amount at 66 or wait for the increase at 70ish? One statistic that I have followed is that the amount you get at 66 increases 8% a year compounded so the 70ish payment is 36% higher than 66. Calculate how long you are going to live and then do the math. Should we be optimistic or think negative thoughts about our passing?
Not a calculation that anyone really wants to make.
BTW, Olivia de Havilland from “Gone With The Wind” just turned 102. She was the definition of an actress. Marsha Hunt, who was the second choice for that role and a favorite of mine years ago, turned 101 on October 17th. Kirk Douglas (I am Spartacus) is 101 and Doris Day (love her hotel in Carmel) is a young 96. Just some considerations for your calculation.