Did you know, you could be in line for a hefty increase in your
social security income next year?
If the recent numbers are any peek into the future, you could have one of the most
massive increases in your social security income in over 30 years in this video.
I will share what to look for in the fall so you make sure you can get
that income, but before we get there, subscribe to my channel so I can get
you that information that you need for timely and relevant information on
your retirement and social security.
Many retirees rely upon their social security income, not just for
income now, but for income later, and social security should be a
part of your overall income plans.
Let's start here for just a moment.
Why is this important?
Right.
So the income plan is basically defined as how much income do I need, how much income
is coming in now and how much income can I expect later for inflation purposes,
because we know that everything gets more expensive year over year, over year.
So the whole thought behind increasing my income year over year is important.
If you have a pension, you typically don't get a cost of living increase, a
COLA, but if you have social security, you depend on that because we've
been getting that for many years.
So let's go into a little bit of a background on the cost of living increase,
up until 1975 Congress mandated how much of an increase retirees would get year
over year, but that changed in 1970s.
So, let me take you to my screen for just a moment and show you a bit of
a history of the types of increases we've experienced since then.
Now, as you can see, going back to the mid to late seventies and early
eighties, the numbers were pretty high.
If you were anything like me, I actually bought my first condo in
Boston and my mortgage rate was 17%.
I gladly a couple of years later refinanced at the great rate of 13%, but
that's when inflation was ultra high and we were getting ultra high increases in
the cost of living each and every year.
Now, if you take a look from 1984 and beyond, we have only
had two increases of 5% or more.
And if you look at the chart a little bit more closely here starting in 2009,
you will see that we had the first back-to-back years of no inflation in 2009
and 2010, since then the numbers have been very low and in 2015 and 16, bascially
that repeated but in 16, they gave us a, you know, a bit, it was three tenths
of 1% increase, but overall we really have not been getting much of a cost of
living increase for numbers of years.
Now I know that is daunting in and of itself, but even claiming your social
security strategy, assuming you haven't done so yet, did you know there were
567 different claiming strategies?
How well prepared are you to get all the income you deserve?
All the income you've earned during your working years?
If you go to my banner, you can hit our quiz and I can get you, once you've put
in the two minutes necessary to finish the quiz- a two-minute investment in
yourself will score the quiz results for you- I can get you the free chapter
of my recent book "Don't outlive your money in retirement" and a couple of
worksheets that will provide you with a little more clarity with regards to how
to put together your own income plan.
So recently, They changed the inflation index for social security, to what
they call the CPI-W for wages.
Okay.
In April, that number was up 4.7%.
It was a year over year increase from the previous year.
And in May, it was up 5.6%.
This may be giving us a look into the future.
Now to give you a sense of how social security actually works, they will
announce the increase in October, but it's based on the third quarters CPI-W.
As we looked back at history to try to gauge whether the first half of
the year's numbers were going to be anywhere near what we thought
the third quarters numbers were.
Certainly no guarantees.
Right?
But it looked pretty close.
The correlation, the connection between what happened in the first half of the
year to what we expect will happen in the third quarter, it looked pretty similar.
So we're fairly confident that unless something really goes around.
That the number in the third quarter should be hefty as well, which should
provide for a great announcement in October for the increase of more than 5%.
Something we haven't seen very much in the past 30 years.
Do stay tuned to my channel to get more information and go to our playlist
to get more detail on some of the 567 different claiming strategies
you could make to make sure you maximize your social security income.