Not all smiles for some retirees in Chiang Mai

[JulieM]

I'm looking at a printed statement I received for 2005. It says: "These estimates are in today's dollars. After you start receiving benefits, they will be adjusted for cost-of-living increases."

That's confusing. It implies that the adjustment for cost-of-living doesn't start until you start receiving benefits.

And even though the printed document I am looking at is from 2005, the values they suggest I will receive at age 62, 67 and 70 are very close to the values shown on the web site. However, I have not worked since 2008 so I have paid nothing in for the last seven years.

[CMBob]

I'm looking at a printed statement I received for 2005. It says: "These estimates are in today's dollars. After you start receiving benefits, they will be adjusted for cost-of-living increases."

That's confusing. It implies that the adjustment for cost-of-living doesn't start until you start receiving benefits.

It really shouldn't be confusing. When anyone (including the SSA) are estimating future benefits, they can't do it exactly because they don't know what (if any for a given year) cost-of-living increases will be.

And, yes, nobody is going to receive any cost-of-living adjustment until they start receiving benefits and a cost-of-living adjustment actually applies. The cost-of-living adjustments (if any) take effect beginning with the January payments. Recent history (if inflation hasn't reached a certain level for a given year, no increase is given):

January 2010 -- 0.0%

January 2011 -- 0.0%

January 2012 -- 3.6%

January 2013 -- 1.7%

January 2014 -- 1.5%

[watgate]

The US Congress recently passed a bill whereby the Social Security Administration is going to once again start mailing out benefit statements on a yearly basis.

Edited October 14, 2014 by watgate

[Jingthing]

The US Congress recently passed a bill whereby the Social Security Administration is going to once again start mailing out benefit statements on a yearly basis.

Interesting. Starting when, or already? They would have a very old address of mine. I suppose in that case I need to deal with them online and give a current address.

[JulieM]

It really shouldn't be confusing. When anyone (including the SSA) are estimating future benefits, they can't do it exactly because they don't know what (if any for a given year) cost-of-living increases will be.

And, yes, nobody is going to receive any cost-of-living adjustment until they start receiving benefits and a cost-of-living adjustment actually applies. The cost-of-living adjustments (if any) take effect beginning with the January payments. Recent history (if inflation hasn't reached a certain level for a given year, no increase is given):

January 2010 -- 0.0%

January 2011 -- 0.0%

January 2012 -- 3.6%

January 2013 -- 1.7%

January 2014 -- 1.5%

The confusing bit is when they give us meaningless numbers when it should be dead easy to estimate inflation. They can even call it an "estimation" to cover themselves.

My point is, if they are going to give us a dollar figure, they should estimate what the buying power of that money will be five, 10 or 20 years from now.

OK, I can do it myself. But can the average Joe/Jane? Currently, some 50 year old guy is being told he can expect $2,500 if he claims benefits when he turns 70. Is he expected to know how little that might be in 20 years?

[neilrob]

You know what the $2500 is worth, because the $2500 they estimate will have the buying power that $2500 does right now, assuming that both SS and prices adjust by the same rate of inflation. So if prices double before you retire, you will get roughly $5000, which will buy just the same as $2500 today.

[Trujillo]

He couldn't afford to move to assisted living at Dok Kaew Gardens at McKean.

I am not sure what this thread is actually supposed to be about.

But first, this quote above seems to indicate that "Dok Kaew Gardens" is the only place an elderly person in need of care could go. In my very mooban there is an "old folks"/"retirement home" place that has staff in residence 24 hours a day. It's not equipped as a hospital, but appears to have what it takes to look after the very elderly (and probably pretty reasonably priced). The post makes is sound like if you can't go to Dok Kaew Gardens, you're stuffed. I don't think that's the case.

And again, what is this thread about? Some older fellow, likes his drink, health isn't all that great, eventually runs out of money, more or less, gets some help from someone (Yellow signs in the trees pollution organization?) and...yes, and? So?

Is this a sob story? A do-gooder story? A fable for not being prepared when you ought to have been? A story of the angels of mercy at Dok Kaew Gardens? Or a story of the fiendish effects of firewater?

Also, the people who say, "Well, when you come out here to retire you need to have your financial ducks in a row," perhaps don't realize that this guy probably did plan for this day -- and it's unfolding just as he suspected it would.

[JulieM]

neilrob, I don't think so. The document I have from 2005 clearly states that adjustments for inflation begin once you start withdrawing from the program. Plus, my social security statement from 2005 and the figures I see on their web site now (nine years later) show basically the same figures as to how much SS I qualify for at 62, 67 and 70, as mentioned earlier in this thread.

[mania]

Plus, my social security statement from 2005 and the figures I see on their web site now (nine years later) show basically the same figures as to how much SS I qualify for at 62, 67 and 70, as mentioned earlier in this thread.

You see now that would make some folks who kept paying for those 9 more years upset

Given it is 6.2% I think? they withhold

Why should one keep giving if the gov do not intend to give any more of it back than what your already qualified for years before?

I know not everyone has a choice but still...........

[Bill97]

I haven't received a statement in the mail for years. I think I read that instead of sending them out every year, they now do it every five years. I may be wrong. I have trouble signing in online all the time. I guess I was doing it at the wrong times of day.

I know a number of folks that receive statements annually but perhaps not the statements you are thinking of. They send out two or three things regularly annually to those receiving benefits.