# 2021 COLA for U.S. Citizens



## Cebu Citizen (Dec 13, 2013)

*IT'S OFFICAL!!!*

The U.S. Government announced today that the Cost of Living Allowance, *(COLA)*; to take effect on January 1st, 2021; is set at a tiny little *1.3%* increase...this will affect all three disability or retirement pensions: Social Security Beneficiaries, Veterans Administration Beneficiaries and Railroad Retirement Pensions.

So, if you are a recipient of any benefits from either or several or all of these three Government Agencies, expect to get an amount that might buy a few meals but I guess it's better than nothing! In other words...for every $1,000 U.S. Dollars you receive each month, your new check will amount to a mere $1,013.00...a *$13.00* raise for each $1,000.00 you currently draw!

COLA calculations used by the U.S. Government have long been disputed by economic experts because the formula used for estimating inflation does *NOT* take into account actual expenses used primarily by Senior Citizens...who are the ones most affected by inflation since most are on a fixed income and no longer working! It is estimated that Senior Citizens and Retirees would actually need to receive a 25% to 30% COLA raise to get them back up to the spending power they had when they stopped working...

Here's hoping that the upcoming U.S. Elections, (November), will finally result in an update of this age old practice and bring America's retirees into the current financial market arena with actual spending power for each dollar received!

Stay Safe Out here Everyone...


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## BusyBC57 (Apr 13, 2015)

Extra money is always welcomed.


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## greenstreak1946 (May 28, 2017)

I just filed my taxes before Oct 15th. I paid over $2400 in social security tax even being semi-retired. So I am going to get a $20 increase per month next year. that relates to $240 for the year. that means I paid over $2,000 in SS more then my raise. Plus i have not gotten any raises in SS from working after the age limit. this is a damn scam. I hate the government and how they reap us off.

art


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## fmartin_gila (May 15, 2011)

Probably still wind up with a net loss, depending on how much more the medicare premium will increase. Some years there has been no COLA but there has always been a premium increase each year. Even when there is a COLA, it is always lower than the inflation rate so we almost always come out at a loss overall.

Fred


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## greenstreak1946 (May 28, 2017)

hey Fred,

I am lucky to have VA benefits so I canceled out Medicare several years ago. I got grandfathered through the VA system 20 years ago when they changed the requirements to qualify for benefits. Now I could not qualify for free health care through the VA. I only pay co-pay for medicine. 

The way I understand it now if the vet makes more then the limit he can't receive any VA care. I know what you me about the cola increase and the medicare cost.

Art


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## Cebu Citizen (Dec 13, 2013)

greenstreak1946 said:


> hey Fred,
> 
> I am lucky to have VA benefits so I canceled out Medicare several years ago. I got grandfathered through the VA system 20 years ago when they changed the requirements to qualify for benefits. Now I could not qualify for free health care through the VA. I only pay co-pay for medicine.
> 
> ...



A little off topic for the COLA thread but in response to your comment about VA Benefits, I think it is only a matter of time before we lose everything here in the Philippines regarding VA Medical Care!

First it was the loss of travel pay and then the new Foreign Medical Program and then VA Manila stopped processing Clothing Allowances for disabled Vets and just yesterday I received an email from VA Manila stating that the VA Medical Facility in Manila will NO LONGER provide ortho care for all veterans and ALL ortho appointments have already been canceled and they no longer process surgery authorizations and the Eye Clinic closed a late last year...etc., etc., etc...

Little by little, one by one, they are eliminating the services here until one day, they will not have anything to do and will close the regional office for good! Even with the pandemic...they are currently doing ONLINE visits with your primary care doctor, heck, they can do that from the US through the computer...so why even have an office here?

I had a situation this week and have been calling the Manila VA Office every morning and every afternoon for three days and it is being rerouted to a US VA Office...I even double checked the number and it is correct, it is the Manila OPC landline number on Roxas Blvd...but no one answers there and the person picking up the phone was in Houston, Texas!

It is ONLY a matter of time and I think the VA will close completely in the Philippines! And I hate that...I liked having a local VA Office here to handle our needs.

The Manila VA OPC and the Manila Regional Office are the ONLY VA Facilities outside of the US...and one of the reasons why I choose to retire here...because there WAS a VA Office!


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## greenstreak1946 (May 28, 2017)

hey cebu citizen

My understanding the only VA care in the Philippines is the vets that are service connected with an injury or illness that is service related. I never had any care there because I was never service related with anything. 

Back to the Cola. I think it is a crying out shame how we are treated with the raises. We can spend trillions of dollars on supporting the illegals and giving money to other countries but to the hell with us. Like I said I don't have medicare. Only VA health care here in the USA.

Art


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## Cebu Citizen (Dec 13, 2013)

greenstreak1946 said:


> hey cebu citizen
> 
> My understanding the only VA care in the Philippines is the vets that are service connected with an injury or illness that is service related. I never had any care there because I was never service related with anything.
> 
> ...



*WELL SAID* greenstreak1946!!!...the US Government will spend millions and even billions on other countries but they just don't seem to do much for the actual American citizens who are paying the taxes that generates revenue to support a government who treats their citizens like left-overs!!! As I mentioned in my original post...ALL recipients drawing Social Security Benefits are estimated to be short 20 to 30% in actual buying power due to inflation. The entire purpose of the COLA raises was to stop retirees from falling behind but year after year we keep falling further and further behind because we are given either NO COLA raise or a tiny little 1.3%...

I certainly appreciate ANY raise, and every little bit does help...but the fact remains that the way they calculate inflation and the COLA raises has got to change! Needs to be changed! Should be changed! I hope it will change...

AND...did I mention that it has got to change?


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## Cebu Citizen (Dec 13, 2013)

*JUST IN.....*

The United States House of Representatives have just announced today that a new emergency Bill has been introduced by Representatives Peter DeFazio of Oregon and John Larson of Connecticut that will provide an emergency increase to next years COLA, (2021), from the current 1.3% already approved by the Social Security Administration and scheduled to take affect on January 1st, 2021, to a* 3% increase *due to the extreme hardships currently experienced by retirees due to the COVID19 Pandemic. The bill was presented to the House today and an immediate vote is scheduled to take place tomorrow for an expected passage. However...even "IF" he Bill passes the House, it must also pass a vote in the Senate as well as a signature from President Donald Trump. The *GOOD* news...this Bill has a very good chance of passing because of the current election...no one wants to go into the election denying a critical bill for the elderly and retired population! The *BAD* news...this Bill has not passed the three necessary hurdles and is NOT a law yet...


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## cvgtpc1 (Jul 28, 2012)

Cebu Citizen said:


> *WELL SAID* greenstreak1946!!!...the US Government will spend millions and even billions on other countries but they just don't seem to do much for the actual American citizens who are paying the taxes that generates revenue to support a government who treats their citizens like left-overs!!! As I mentioned in my original post...ALL recipients drawing Social Security Benefits are estimated to be short 20 to 30% in actual buying power due to inflation. The entire purpose of the COLA raises was to stop retirees from falling behind but year after year we keep falling further and further behind because we are given either NO COLA raise or a tiny little 1.3%...
> 
> I certainly appreciate ANY raise, and every little bit does help...but the fact remains that the way they calculate inflation and the COLA raises has got to change! Needs to be changed! Should be changed! I hope it will change...
> 
> AND...did I mention that it has got to change?


Make sure you vote Nov 3rd!


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## bigpearl (Jan 24, 2016)

Cebu Citizen said:


> *WELL SAID* greenstreak1946!!!...the US Government will spend millions and even billions on other countries but they just don't seem to do much for the actual American citizens who are paying the taxes that generates revenue to support a government who treats their citizens like left-overs!!! As I mentioned in my original post...ALL recipients drawing Social Security Benefits are estimated to be short 20 to 30% in actual buying power due to inflation. The entire purpose of the COLA raises was to stop retirees from falling behind but year after year we keep falling further and further behind because we are given either NO COLA raise or a tiny little 1.3%...
> 
> I certainly appreciate ANY raise, and every little bit does help...but the fact remains that the way they calculate inflation and the COLA raises has got to change! Needs to be changed! Should be changed! I hope it will change...
> 
> AND...did I mention that it has got to change?


Watching and learning here, I assume the US pensions are means tested? If you have too much money then no pension like Australia?
I agree with the sentiments here and it's probably relative to most western countries hand outs to shore up votes and be seen to be politically correct in the eyes of the world at the expense of the tax payers. Work hard for 45 or 50 years, contribute to the system,,,,,, sorry sir you have too many assets and cash not that I can apply (61) nor would I bother as I saw the problem with our system 30 years ago and it's getting worse.

I see the pensioners in Oz trying to live on AU 22K a year with minuscule annual rises, their income has been eroding for donkeys years, fortunately many own their own homes and eke out a pretty miserable existence after years of propping up mismanagement, those renting? Nasty. BTW AU 22K is about US 15.5K and I don't know where that fits for those living in the US as I've not been there for over 12 years but from then the cost of living was cheaper than Oz so probably relative.

What Peeves me is (in Oz) the workers get jack S*it but the politicians pensions are 6 figures and not based on their wealth (not means tested) so our current Prime minister Scott Morrison who has a net worth of over AU 50M will get a 6 figure pension, his annual wage is 528K p/a, the previous leader like your President donates his wage to charity but hey he is worth 200M+ and I'm sure taking the 6 figure pension as he has retired from the lime light,,,,,,, the people that paid for all this? Are still paying for all these retired politicians and most don't see, they plod on with what is offered.

Sorry for the b*tch, angry with my government and I see the same happening inmost countries,,,,,,,, we won't get into the superannuation contributions that the taxpayer make for our politicians, that's another sad story.

OMO.

Cheers, Steve.


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## DonAndAbby (Jan 7, 2013)

bigpearl said:


> Watching and learning here, I assume the US pensions are means tested? If you have too much money then no pension like Australia?


Not exactly. Two scenarios and both may apply.

If you earn money at a job (not passive earnings like investments):

_The earnings limits are adjusted annually for national wage trends. In 2020, you lose $1 in benefits for every $2 earned over $18,240. If you have a part-time job that pays $25,000 a year — $6,760 over the limit — Social Security will deduct $3,380 in benefits. Suppose you reach full retirement age this year._

If your total income (passive and / or non-passive) goes over a certain limit, you pay income tax on the SS benefit. I only have passive income and it is too much, so I pay regular income tax on 85% of my SS benefit.

I don't think there is any scenario where an American can lose their entire benefit because they are too rich. They do get taxed on it.


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## bigpearl (Jan 24, 2016)

Not so for Oz Don,,,,, unless you are a politician retired. I will never see a pension and some could argue rightly so, you sir have too much money and p*ss off. A question Don, if a millionaire, cash/investments but only the family home applies for the pension, (Australia the family home is valued) SS I think you call it there after working and paying taxes for 40 or 50 years, do they qualify? Partial pension or zilch?

It seems to me that those in Oz that chose to work hard and pay far more tax than the average joe are penalised and have no recourse. My company and trust taxes, my employees taxes nary come into the equation, what you generated towards the countries economy. You know what? I'm simply happy to not have to bother with penny pinching but honestly feel for the average wage earner now trying to live on a pension.
I see why many from my country and others chose a life in a foreign destination so they can have a half decent life not afforded by their home countries.

Hey OMO and mostly relevant to Oz.

Cheers, Steve.


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## Cebu Citizen (Dec 13, 2013)

cvgtpc1 said:


> Make sure you vote Nov 3rd!




Already voted...sent my ballot in early September and received an email from the Election Commission about 2 weeks later stating that they received my ballot...

I think every election is important...but in light of everything that has happened in recent months...this is probably the single most important election of our lifetime!

There have been riots before but never has there been dozens of cities burning and businesses being looted like they have recently and calls for defunding the Police and crime is on the rise and the military leaders getting involved in political comments and the FBI fabricating false evidence and the news media not reporting facts and politicians wanting to allow illegal alien's the right to vote and receive stimulus money, and worst of all...no one seems to respect the office of the President any more, (it doesn't matter if people like the President or not but you still must respect the position)! People vote and a President is selected and if people don't like it, get out and vote someone else into office at the next election!

America is on the verge of losing the freedoms and liberties we were founded on!


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## Manitoba (Jun 25, 2014)

bigpearl said:


> Watching and learning here, I assume the US pensions are means tested? .....
> .


In Canada there is a claw back provision. No limit on assets but to get to keep any social benefit it is based on your income in the previous year.

At $CDN77,580 it starts and if you are over around 126,000 you do not get anything.

I deferred my pension for a few months because it increases by 0.6% per month and my 2019 income was high enough to wipe out any Canada Pension until July 2021. (If you take it early you lose 0.6% per month.)


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## bigpearl (Jan 24, 2016)

Too young to apply for anything and honestly even when I am won't bother as I see the broom handle getting longer every year, pity we can't shove it where it's needed.

OMO.

Cheers, Steve.


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## bidrod (Mar 31, 2015)

bigpearl said:


> Not so for Oz Don,,,,, unless you are a politician retired. I will never see a pension and some could argue rightly so, you sir have too much money and p*ss off. A question Don, if a millionaire, cash/investments but only the family home applies for the pension, (Australia the family home is valued) SS I think you call it there after working and paying taxes for 40 or 50 years, do they qualify? Partial pension or zilch?
> 
> It seems to me that those in Oz that chose to work hard and pay far more tax than the average joe are penalised and have no recourse. My company and trust taxes, my employees taxes nary come into the equation, what you generated towards the countries economy. You know what? I'm simply happy to not have to bother with penny pinching but honestly feel for the average wage earner now trying to live on a pension.
> I see why many from my country and others chose a life in a foreign destination so they can have a half decent life not afforded by their home countries.
> ...


Steve, Social Security was never meant to be the amount you live on after retiring. It is a supplemental income to what you should have already accumulated/set up for life after retirement. It was supposed to be about 33% of what you needed monthly/yearly.

Chuck


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## DonAndAbby (Jan 7, 2013)

bigpearl said:


> Not so for Oz Don,,,,, unless you are a politician retired. I will never see a pension and some could argue rightly so, you sir have too much money and p*ss off. A question Don, if a millionaire, cash/investments but only the family home applies for the pension, (Australia the family home is valued) SS I think you call it there after working and paying taxes for 40 or 50 years, do they qualify? Partial pension or zilch?
> 
> It seems to me that those in Oz that chose to work hard and pay far more tax than the average joe are penalised and have no recourse. My company and trust taxes, my employees taxes nary come into the equation, what you generated towards the countries economy. You know what? I'm simply happy to not have to bother with penny pinching but honestly feel for the average wage earner now trying to live on a pension.
> I see why many from my country and others chose a life in a foreign destination so they can have a half decent life not afforded by their home countries.
> ...


Oz rules are much tighter. In the U.S., the SS programs have expanded over the years to cover more situations.

It does not matter where you retire or how many assets you have. If you paid in, you get something back. Sometimes politicians refer to it as an "entitlement" program but it really is not, because you pay into the fund. If you don't pay in enough over the years you will get nothing. I think you have to pay in 40 quarters, 10 years, to get a benefit. I paid in for over 40 years, starting when I was a kid. They fund it with 6.2% of your salary but there is an annual cap. The employer also pays 6.2% so a total of 12.4%. If you are self-employed, you pay the entire 12.4 %.

It used to be kept entirely separate but some time in the past the government moved it into the national budget. No reason for it, except to play political games with it.

If your income is too much, the SS will be counted as regular income and you pay tax on it. In some ways, this is double taxation as you already paid the 6.2% in as an "investment".


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## bigpearl (Jan 24, 2016)

Thanks all for the input, seems Aussies get screwed. Say a retired single on a full pension of about AU 22K is allowed to earn 89 bucks a week, for every dollar over that they lose 50 cents in the dollar off their pension. Income includes interest/dividends/rent received/wage for work/superannuation returns etc. Then there is the mobility of the pension to another country, more difficulties and less money.

It was good to hear how others do it, again thanks.

Cheers, Steve.


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