# Social Security 2021 COLA Set at 1.3%



## OneEyedDiva (Oct 19, 2020)

According to this article published in USA Today's Money section. And WTH...this is what it says about a Medicare B premium increase: 
"Also, recent legislation limits the Medicare Part B premium increase next year to the size of this year's hike plus a small additional bump. ." So I guess that means most of us won't really see an increase in our SS payments.  
https://www.usatoday.com/story/mone...-2021-benefits-rise-1-3-next-year/5977421002/


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## Becky1951 (Oct 19, 2020)

One hand gives it while the other hand takes it away.


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## JustBonee (Oct 19, 2020)

From the above link ....

_Nearly 43 million beneficiaries could see much or all of their cost-of-living increase effectively wiped out because of increases in premiums for Medicare Part B, which are automatically deducted from many Social Security checks, Johnson says. For others, the Medicare offset could make any COLA benefit marginal. _*Under a "hold harmless" provision, Medicare premium increases are generally adjusted so they don't reduce Social Security benefits.*

Wondering how far off is the day when  SS benefits  start getting reduced to pay Part B?


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## Aneeda72 (Oct 19, 2020)

I wish I got the so called 1500 plus a month.  I about 813, with the raise in pay and the raise in part b, I’ll probably get less.


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## Ellen Marie (Oct 19, 2020)

Yeah.... the COLA will be eaten up by medicare..... The US dollar doesn't go as far as it used to.....I guess I appreciate that I am still able to work.  Just got a $9 a month raise from SSA because I worked last year.   So, with my increase and COLA that will cover the increase in both the medicare and my supplement.....lol..... still not getting ahead.... but not falling behind also!!!!!!


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## mathjak107 (Oct 20, 2020)

Bonnie said:


> From the above link ....
> 
> _Nearly 43 million beneficiaries could see much or all of their cost-of-living increase effectively wiped out because of increases in premiums for Medicare Part B, which are automatically deducted from many Social Security checks, Johnson says. For others, the Medicare offset could make any COLA benefit marginal. _*Under a "hold harmless" provision, Medicare premium increases are generally adjusted so they don't reduce Social Security benefits.*
> 
> Wondering how far off is the day when  SS benefits  start getting reduced to pay Part B?



hold harmless only applies to the lowest level of premiums .
higher levels of income triggered even by once in a lifetime asset sales can see you increased thousands a year .


don't think those surcharges are for the wealthy either .

a widow can sell a business  or real estate in the family for decades and have less  of a nest egg to live on including those proceeds   then you do , yet they will pay thousands more in medicare premiums  then someone else who has a bigger nest egg saved .

it really is a poor way of determining who pays thousands more .

it is like if you sold more than two years earlier   prior to medicare then your gains don't count  but two years later they do . that is regardless of the fact those proceeds included  , can leave you with less of a nest egg to live on  than your peers  paying thousands less in premiums .


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## fmdog44 (Oct 20, 2020)

The Fed estimated its preferred measure of annual inflation will close out 2020 at *1.2%*, up from its 0.8% forecast in June, before rising to 1.7% in 2021. A core measure that strips out volatile food and energy items is projected to end the year at 1.5%, above officials’ previous 1% prediction.
*Fed vows to keep rates near zero until inflation tops 2% ...*

www.usatoday.com/story/money/2020/09/16/fed-interest-rate-interest-rates-sta…


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## mathjak107 (Oct 21, 2020)

the core measure is not used for calculating ss though  .

the cpi-w is used and IT INCLUDES FOOD AND ENERGY.

the core is used  to just take the temperature of the 1500 different mini economies we have and because food and energy can be seasonal or effected by weather and shortages  ,   it is eliminated in the core .

but the cpi-w which is what is linked to most cola adjustments and social security  certainly includes food and energy  as well as the cpi-u includes it


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