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Social Security 2020 COLA: An early prediction
Okay, so reality is that it’s way too early to make an accurate prediction of what next year’s Cost of Living Adjustment (COLA) will be for those collecting Social Security benefits. After all, COLA is determined by the results of differences in the Consumer Price Index (CPI) for the 3rd quarter of each year, specifically the months of July, August and September of this year compared to the same period last year. But even though the actual CPI numbers won’t be known until October, many prognosticators love to use 1st quarter CPI results as a harbinger of things to come. In this Motley Fool article by Maurie Backman, the author goes out on a limb with an early prediction for a very anemic 2020 COLA increase, and discusses the impact that will have next year on those who rely too heavily on their Social Security benefits. Click here to read more.
If we had known we couldn’t count on Social Security, we would have saved more in our youth. We thought the financial system would be stable and we could trust the markets. The government takes a lot of our Social Security through taxation. You want to give us a raise? LOWER THE TAX AMOUNT THE FEDERAL GOVERNMENT LEVIES ON OUR BENEFITS!!!!
Thank you for your comment! As you may be aware, we are finally seeing some action in Congress addressing the Social Security solvency dilemma. Specifically, HR 860 (The Social Security 2100 Act), is now active in the House Ways and Means Committee, and one of the provisions of this bill is to raise the thresholds for taxation of Social Security benefits. We can’t project what the final outcome of this bill will be, but if this provision remains, it would address your interest in lowering the tax amount. In discussions with HR 860’s primary sponsor (Rep. John Larson), AMAC spokespeople have voiced support for raising this tax threshold.
In the meantime, stay tuned to updates as this bill moves through the Congressional process. We’ll be posting updates on it from time to time on this website.
Gerry Hafer
AMAC Foundation, Inc.