EXPLAINER: Why Social Security COLA will jump next year

Business

Associated Press 12 October, 2021 - 11:28pm 5 views

What will 2022 COLA be?

In 2022, Social Security retirees will likely receive a Social Security cost-of-living adjustment (COLA) equal to 6% to 6.1% of their benefits, according to the Senior Citizens League. This is the biggest benefit increase in decades and will leave the average retiree with about $93.20 more in their monthly checks. Motley FoolSocial Security Checks Will Be Much Bigger in 2022. That's Bad News for Retirees

Will there be a Social Security increase for 2022?

Social Security benefits are getting a boost for 2022, potentially the biggest bump in the last 40 years. While the annual increase could be as high as 6.2% due to inflation, that monthly check may not go as far as you think. See: How Much Can the Average Senior Citizen Expect To Benefit From Social Security? Yahoo FinanceWhy Inflation’s 6% Cost-of-Living Increase to Social Security Could Be a Double-Edged Sword

When is Social Security COLA announced?

We determined a 1.3-percent COLA on October 13, 2020. We will announce the next COLA in October 2021. ssa.govCost-Of-Living Adjustment (COLA)

Yes, painting your home takes time and money, but you could get significant returns based on the colors you choose. As a rule of thumb, light, neutral colors are the way to go, because color choice is highly subjective.

"Everyone's ideas of what they want and like—in colors, moods, and energy—are very different," explains David Bluhm, co-founder of Plunk, an app that helps homeowners increase their home equity through improvements. "So the more bold color choices you make, the more you invite risk that you'll only appeal to a smaller audience of potential buyers," says Bluhm.

The color you choose for the outside of your home is important too, and also plays a part in increasing its value. "From an exterior perspective, the color of your home can drastically boost your curb appeal," says Eamon Lynch, director of warranty service at Power Home Remodeling. Lynch suggests white, gray, and tan for your home's exterior because they are "the most universal and timeless across...styles and regions."

If you want to add a pop of color to your home, the outside is the place to do it. Lynch suggests a statement door, window flower boxes, and shutters, in the same color to make your home stand out. In fact, painting your door black or charcoal gray could boost home value by $6,000.

Here are the top neutral paint colors to choose that will elevate your home and increase its value.

RELATED: The Top 5 Paint Trends of Fall 2021

If you're looking for a color that will brighten up your home, make spaces look and feel bigger and more inviting, you can't go wrong with white. "There is truly only one color that increases—or, better said, does not decrease the value of your home, and that is white," says Anthony Carrino, VP of design at digital real estate platform Welcome Homes

White is an especially good color for kitchens. "White kitchens are the ultimate crowd-pleasers in my experience," says Wendy McCleery, senior interior designer at Lars Remodeling and Design.

Sticking to a neutral color like a warm white can allow potential buyers to see themselves in a space—something that a bold color might get in the way of. "Painting your house a soft white or neutral will make your home more marketable to the masses, helping it appear larger and like a clean canvas," says Walton. She recommends Benjamin Moore's Chantilly Lace, for a soft white color that can be used on walls, ceilings, cabinets, and other spaces for a clean, crisp look. 

A warmer shade of white, cream is another neutral that can freshen up a space. "When we flip a property, we like to use light cream colors on the interior walls," says Marina Vaamonde, a commercial real estate investor and founder of PropertyCashin. Vaamonde says cream gives a room an inviting feel and can boost a home's perceived value by a few thousand dollars. 

A 2021 survey on Zillow found that light blue was the most popular color to paint a bathroom—and on average, could increase the value of a home by $5,000. "Bathrooms are areas where homeowners want to feel relaxed; any color that helps foster that feeling instantly provides increased value," says Lynch. 

McLeery says light blue can make a bathroom look "inviting, comfortable and cozy, but also more spacious." 

Once again, light blue is considered a neutral color, which is more likely to appeal to a wide range of styles and tastes. "It is said to be an easy-to-live-with color that conveys feelings of peace and serenity," says Kate Diaz, co-owner of home decor and interior design site, Swanky Den

Both gray and beige are excellent neutrals to paint interiors, but if you can't decide between the two, greige offers a combination. "Greige can be an alternative to white and gray and brings a feeling of elegance and sophistication," says Warner Quiroga, real estate investor and owner of Prestige Home Buyers.

Not only will greige give your home a warm, elevated look; it will increase its value, too. "Repainting your living room a neutral color like gray, beige or light brown can add up to $2,000 in your home's value, which can be modernized with accents of white," says Bailey Carson, home care expert at Angi

Walton recommends Sherwin Williams Agreeable Gray as the perfect greige, and says the warm color will make the inside of your home "feel like a cashmere blanket." 

RELATED: 8 Home Upgrades That Don't Pay Off

Read full article at Associated Press

COLA could be revealed this week by Social Security Administration, how much more money will you get?

FingerLakes1.com 12 October, 2021 - 08:20pm

Yes, painting your home takes time and money, but you could get significant returns based on the colors you choose. As a rule of thumb, light, neutral colors are the way to go, because color choice is highly subjective.

"Everyone's ideas of what they want and like—in colors, moods, and energy—are very different," explains David Bluhm, co-founder of Plunk, an app that helps homeowners increase their home equity through improvements. "So the more bold color choices you make, the more you invite risk that you'll only appeal to a smaller audience of potential buyers," says Bluhm.

The color you choose for the outside of your home is important too, and also plays a part in increasing its value. "From an exterior perspective, the color of your home can drastically boost your curb appeal," says Eamon Lynch, director of warranty service at Power Home Remodeling. Lynch suggests white, gray, and tan for your home's exterior because they are "the most universal and timeless across...styles and regions."

If you want to add a pop of color to your home, the outside is the place to do it. Lynch suggests a statement door, window flower boxes, and shutters, in the same color to make your home stand out. In fact, painting your door black or charcoal gray could boost home value by $6,000.

Here are the top neutral paint colors to choose that will elevate your home and increase its value.

RELATED: The Top 5 Paint Trends of Fall 2021

If you're looking for a color that will brighten up your home, make spaces look and feel bigger and more inviting, you can't go wrong with white. "There is truly only one color that increases—or, better said, does not decrease the value of your home, and that is white," says Anthony Carrino, VP of design at digital real estate platform Welcome Homes

White is an especially good color for kitchens. "White kitchens are the ultimate crowd-pleasers in my experience," says Wendy McCleery, senior interior designer at Lars Remodeling and Design.

Sticking to a neutral color like a warm white can allow potential buyers to see themselves in a space—something that a bold color might get in the way of. "Painting your house a soft white or neutral will make your home more marketable to the masses, helping it appear larger and like a clean canvas," says Walton. She recommends Benjamin Moore's Chantilly Lace, for a soft white color that can be used on walls, ceilings, cabinets, and other spaces for a clean, crisp look. 

A warmer shade of white, cream is another neutral that can freshen up a space. "When we flip a property, we like to use light cream colors on the interior walls," says Marina Vaamonde, a commercial real estate investor and founder of PropertyCashin. Vaamonde says cream gives a room an inviting feel and can boost a home's perceived value by a few thousand dollars. 

A 2021 survey on Zillow found that light blue was the most popular color to paint a bathroom—and on average, could increase the value of a home by $5,000. "Bathrooms are areas where homeowners want to feel relaxed; any color that helps foster that feeling instantly provides increased value," says Lynch. 

McLeery says light blue can make a bathroom look "inviting, comfortable and cozy, but also more spacious." 

Once again, light blue is considered a neutral color, which is more likely to appeal to a wide range of styles and tastes. "It is said to be an easy-to-live-with color that conveys feelings of peace and serenity," says Kate Diaz, co-owner of home decor and interior design site, Swanky Den

Both gray and beige are excellent neutrals to paint interiors, but if you can't decide between the two, greige offers a combination. "Greige can be an alternative to white and gray and brings a feeling of elegance and sophistication," says Warner Quiroga, real estate investor and owner of Prestige Home Buyers.

Not only will greige give your home a warm, elevated look; it will increase its value, too. "Repainting your living room a neutral color like gray, beige or light brown can add up to $2,000 in your home's value, which can be modernized with accents of white," says Bailey Carson, home care expert at Angi

Walton recommends Sherwin Williams Agreeable Gray as the perfect greige, and says the warm color will make the inside of your home "feel like a cashmere blanket." 

RELATED: 8 Home Upgrades That Don't Pay Off

EXPLAINER: Why Social Security COLA will jump next year

AS English 12 October, 2021 - 10:58am

WASHINGTON (AP) — Rising inflation is expected to lead to a sizeable increase in Social Security’s annual cost-of-living adjustment, or COLA, for 2022. Exactly how much will be revealed Wednesday morning after a Labor Department report on inflation during September, a data point used in the final calculation.

Over the last 10 years, the Social Security COLA has averaged about 1.7% annually as inflation remained low. But the economic recovery from the coronavirus pandemic has triggered rising prices for a wide range of goods and services, and that’s expected to translate to bigger checks for retirees.

WHY ARE SOCIAL SECURITY BENEFITS ADJUSTED?

Policymakers say the COLA works to preserve the purchasing power of Social Security benefits, and shouldn’t be seen as a pay hike for retirees.

At one time Congress had to approve inflation increases, but starting in the mid-1970s lawmakers turned that function over to nonpartisan experts within the government bureaucracy. The annual review is now tied to changes in an official measure of inflation and proceeds automatically and with no political brinksmanship.

HOW BIG AN INCREASE FOR 2022?

The Great Recession saw a COLA increase of 5.8% for 2009, and the number for next year may rival that.

This summer, government economic experts predicted a COLA in the range of 6%. If that’s the case, it would be the biggest Social Security hike the vast majority of baby boomer retirees have seen. Up to now, they’ve collected meager to modest annual adjustments, not counting three years for which there was no COLA because inflation barely showed a pulse.

WHAT’S CHANGED OVER THE PAST YEAR?

As the economy recovers from the shock of coronavirus shutdowns, prices are rising at a pretty good clip.

Gas serves as an ever-present reminder, above $3 a gallon in most states, $4 a gallon in California and Hawaii. But food had already been going up and so are labor costs as employers compete to hire choosy workers seeking higher pay and better benefits. Add to the mix supply chain problems that have slowed deliveries of everything from refrigerators to running shoes.

All that gets sifted into the prices that consumers pay for their everyday needs.

The COLA is big enough to have an impact on the overall economy.

It affects the household budgets of about 1 in 5 Americans, including Social Security recipients, disabled veterans and federal retirees, about 70 million people.

About half of seniors live in households where Social Security benefits account for at least 50% of their income, and one-quarter rely on their monthly payment for all or nearly all their earnings. For this latter group, the COLA can literally make a difference in what they’re able to put on the table.

DO PRIVATE PENSIONS ALSO PROVIDE A COLA?

Inflation protection is central to Social Security’s benefit design, but it’s not so common among traditional private pensions. Benefits paid by most employer plans gradually lose some of their purchasing power over the years.

Social Security not only increases retiree checks to compensate for inflation, but it then adds that amount to a person’s underlying benefit so it grows with compounding as future COLAs are factored in.

CAN SOCIAL SECURITY AFFORD TO KEEP PAYING COLAs?

Proposals have been floated both to increase or trim back COLAs in the context of a broader Social Security overhaul. Many advocates for older people argue that the inflation index currently used does not adequately reflect the higher health care costs faced by the aging.

On the other side, groups pressing to reduce federal deficits urge switching to an alternate inflation measure that factors in consumers’ habit of substituting cheaper goods when prices rise. That would yield slightly lower estimates of cost-of-living changes.

For the first time in 39 years, the cost of delivering benefits will exceed Social Security’s total income from payroll tax collections and interest. From here on in, Social Security will have to tap its savings to pay full benefits.

The report also moved up the exhaustion date for Social Security’s massive trust fund by one year, to 2034. At that point, the program will be able to pay only 78% of scheduled benefits, the report said.

Such a reduction would represent a major hardship for most people who depend on Social Security, even middle-class retirees.

But hardly anyone with political power in Washington is talking about fixes.

“Social Security is an issue that really needs to be addressed together by both parties,” said David Certner, legislative policy director at AARP. “It is very difficult to do bipartisan work on something as big and important as Social Security in what is a very partisan atmosphere.”

EXPLAINER: Why Social Security COLA will jump next year

AS English 12 October, 2021 - 10:58am

WASHINGTON (AP) — Rising inflation is expected to lead to a sizeable increase in Social Security’s annual cost-of-living adjustment, or COLA, for 2022. Exactly how much will be revealed Wednesday morning after a Labor Department report on inflation during September, a data point used in the final calculation.

Over the last 10 years, the Social Security COLA has averaged about 1.7% annually as inflation remained low. But the economic recovery from the coronavirus pandemic has triggered rising prices for a wide range of goods and services, and that’s expected to translate to bigger checks for retirees.

WHY ARE SOCIAL SECURITY BENEFITS ADJUSTED?

Policymakers say the COLA works to preserve the purchasing power of Social Security benefits, and shouldn’t be seen as a pay hike for retirees.

At one time Congress had to approve inflation increases, but starting in the mid-1970s lawmakers turned that function over to nonpartisan experts within the government bureaucracy. The annual review is now tied to changes in an official measure of inflation and proceeds automatically and with no political brinksmanship.

HOW BIG AN INCREASE FOR 2022?

The Great Recession saw a COLA increase of 5.8% for 2009, and the number for next year may rival that.

This summer, government economic experts predicted a COLA in the range of 6%. If that’s the case, it would be the biggest Social Security hike the vast majority of baby boomer retirees have seen. Up to now, they’ve collected meager to modest annual adjustments, not counting three years for which there was no COLA because inflation barely showed a pulse.

WHAT’S CHANGED OVER THE PAST YEAR?

As the economy recovers from the shock of coronavirus shutdowns, prices are rising at a pretty good clip.

Gas serves as an ever-present reminder, above $3 a gallon in most states, $4 a gallon in California and Hawaii. But food had already been going up and so are labor costs as employers compete to hire choosy workers seeking higher pay and better benefits. Add to the mix supply chain problems that have slowed deliveries of everything from refrigerators to running shoes.

All that gets sifted into the prices that consumers pay for their everyday needs.

The COLA is big enough to have an impact on the overall economy.

It affects the household budgets of about 1 in 5 Americans, including Social Security recipients, disabled veterans and federal retirees, about 70 million people.

About half of seniors live in households where Social Security benefits account for at least 50% of their income, and one-quarter rely on their monthly payment for all or nearly all their earnings. For this latter group, the COLA can literally make a difference in what they’re able to put on the table.

DO PRIVATE PENSIONS ALSO PROVIDE A COLA?

Inflation protection is central to Social Security’s benefit design, but it’s not so common among traditional private pensions. Benefits paid by most employer plans gradually lose some of their purchasing power over the years.

Social Security not only increases retiree checks to compensate for inflation, but it then adds that amount to a person’s underlying benefit so it grows with compounding as future COLAs are factored in.

CAN SOCIAL SECURITY AFFORD TO KEEP PAYING COLAs?

Proposals have been floated both to increase or trim back COLAs in the context of a broader Social Security overhaul. Many advocates for older people argue that the inflation index currently used does not adequately reflect the higher health care costs faced by the aging.

On the other side, groups pressing to reduce federal deficits urge switching to an alternate inflation measure that factors in consumers’ habit of substituting cheaper goods when prices rise. That would yield slightly lower estimates of cost-of-living changes.

For the first time in 39 years, the cost of delivering benefits will exceed Social Security’s total income from payroll tax collections and interest. From here on in, Social Security will have to tap its savings to pay full benefits.

The report also moved up the exhaustion date for Social Security’s massive trust fund by one year, to 2034. At that point, the program will be able to pay only 78% of scheduled benefits, the report said.

Such a reduction would represent a major hardship for most people who depend on Social Security, even middle-class retirees.

But hardly anyone with political power in Washington is talking about fixes.

“Social Security is an issue that really needs to be addressed together by both parties,” said David Certner, legislative policy director at AARP. “It is very difficult to do bipartisan work on something as big and important as Social Security in what is a very partisan atmosphere.”

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