The Secretary of Treasury did not take cost of Medicare deductible increase, medical supplies and/or medical advantage health insurance and medical Part D increases into consideration, nor the tier changes by drug companies. There are now at least five tiers of drug costs. Some that cost $5 a month now are $47 a month!
Car insurance, homeowners insurance, all have increased in the last 12 months. The pat answer is “this is the COLA formula we use.” Well, that is horribly wrong. Other COLAs say 2 to 2.5 percent and that probably is closer to what retirees spend above last year.
To save Social Security, the cap needs to come off so that everyone pays the same percentage on all income. Then Social Security and Medicare will last as long as drug companies rein in their excesses!
It is also very possible that if all income is included , the 7.625 percent that is paid up to the current income cap of around $115,000 could come down for all.
I am fortunate to have the VA and Medicare with a supplement. The VA clinic on SR 64 is great. Many retirees do not have a second choice and they are getting the shaft.
I did not mean that employers match should continue after the current cap is reached, but should be adjusted gradually (five years) to what it would have been had it been left alone many years ago. It would be around $150,000 today. If Medicare and Social Security had been left alone those many years ago , we wouldn’t be as worried about future benefits as we are now !
David W. Patrick