The news media, Internet discussion boards and Twitter are full of protests about two things in President Obama’s budget proposal, leaked to the press before its official release: chained CPI for Social Security and cap on retirement accounts. First of all, these are only proposals. The President does not make law. The proposals get fed […]
A two-earner family with the same income as a one-earner family receives lower Social Security benefits. The difference gets much larger when one spouse dies.
Jim Blankenship is a Certified Financial Planner, Enrolled Agent, and the owner of Blankenship Financial Planning in Illinois. I have been following his blog Getting Your Financial Ducks In A Row for some time. I also referred to his online publication The IRA Owner’s Manual when I had a question about inherited IRAs. Jim knows […]
Retirees on Social Security will receive a 3.6% increase in their monthly Social Security checks in 2012. For those who aren’t yet eligible for Social Security (myself included), do our future Social Security benefits also increase by 3.6% due to this cost of living adjustment? The short answer is no. All else being equal (no […]
The Bureau of Labor Statistics released CPI changes for September 2011. With that, we can calculate the 2012 Cost of Living Adjustment (COLA) increase for Social Security recipients. Social Security COLA adjusts with changes in CPI-W. We take the Q3 average CPI-W and compare it with the Q3 average in 2008 because the 2008 number […]
Canada’s retirement programs OAS and CPP have a much better setup than Social Security in the US.
Most of people think of Social Security as a government managed savings program similar to a 401k plan: you pay into the system when you are working; you draw from the system when you retire. More informed people will point out it isn’t so. It’s a pay-as-you-go inter-generation transfer program. The money you (and your […]
News came President Obama and Republicans agreed to a “payroll tax holiday” in 2011. For one year only, an employee’s portion of the Social Security tax will be reduced from 6.2% to 4.2%. This will replace the Making Work Pay tax credit in effect in 2009 and 2010. Making Work Pay is a flat tax […]