My Retirement: How I Plan for a Low Social Security COLA Increase

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Also heres why every retiree is not getting the full COLA increase.

With COLAs, Social Security and Supplemental Security Income (SSI) benefits keep pace with inflation.

COLA is determined based on a formula that calculates what the changes are year to year.

CPI-Ws are calculated on a monthly basis by the Bureau of Labor Statistics.

So just how are retirees and those set to leave the workforce setting up for thelow COLA increase?

In a variety of ways to prepare for the worst and hope for the best.

COLAs always lag behind increases in Medicare and health care expenses in general.

So in my retirement planning, Ive never counted on much of an increase.

A retiree in theSt.

My reference to NET income below is theAFTER tax amountI have for living expenses.

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I dont plan on any increased NET income from Social Security.

Even what the COLA increase provides, Medicare takes away.

I always do plan rate comparisons EACH year to find the lowest annualized cost based on my medications.

Part-time work doesnt offer benefits so Im fortunate that I am Medicare eligible.

This might be sooner than 2027 so then Ill have to reevaluatemy annuity option.