Recently, the Congressional Budget Office has suggested that a 1.3 percent cost-of-living adjustment  is pending for Dec. 1 that includes military, civilian, retired pay, and Social Security recipients. There was talk of an increase of as high as 1.9%. We will see the increase in our January annuity check.
Today, 1.3% doesn’t look that bad considering that we can’t get that on our CDs these days because government is funding their out-of-control spending and borrowing on the backs of retirees and those who have saved throughout their lives to ensure a comfortable retirement. My article titled Retiree Reflections – The Way it Was Then and Why  describes how the lack of sound money management principals and spending over 4 billion dollars a day that we don’t have is negatively impacting our economy and our wallets.
The Federal Reserve continues to print money which devalues our currency and there has been a major shift from China and other foreign countries that use to buy our debt to the Federal Reserve. The Federal Reserve doesn’t have money to buy anything; they simply print the money to buy the Treasury Bonds Uncle Sam auctions off regularly. Wouldn’t it be nice if we could do the same thing and just print money when we need it instead of having to scrimp and save to put food on the table and savings in the bank?
The impact on retirees is that savings, 401Ks, and cash will buy less and less with the potential for higher inflation down the road as the printed money makes its way from the bank values into the economy in general. Essentially, the government is redistributing retiree’s wealth, actually anyone’s wealth from their savings, to the Federal Reserve so they can borrow money at artificially low interest rates! If this continues we could end up like Greece and the many other countries that have lived beyond their means for decades.
Retirement application Clarification
One of our readers asked if he needed to file two applications for retirement because he had both CSRS and FERS time . You only need to file one retirement application for your most current retirement system. That would more than likely be a FERS application. The CSRS time will be computer as a CSRS component , but the FERS retirement eligibility rules  will apply if you are currently a FERS employee.
Recent Forum Host Articles:
- How to Receive Social Security Benefit Statements  by Dennis Damp
- What Will You Do in Retirement?  by Dennis Damp
- Phased Retirement & Movies Then & Now by Dennis Damp 
- You Can’t Hide in Fixed Income by Paul Risser 
- The 10% TSP Penalty 
- Best Dates to Retire 2012 and 2013 
Request a FREE Retirement Benefits Summary & Analysis  from a local adviser. A sample analysis  is available for your review. Includes projected annuity payments, income verses expenses, FEGLI, and TSP projections. This service is not affiliated with www.federalretirement.net.
Visit our other informative sites
- Federal Government Jobs & Career Center 
- FREE Federal Employee’s Retirement Planning Guide 
- Federal Employee’s Career Development & IDP Center 
- Post Office Jobs & Career Center 
- Job Search – All Sectors 
- Environmental Health & Safety Jobs Center 
- Nuclear Jobs & Careers  – High Paying Jobs
- Stolen Car Plates & Recovery Guide 
- Take Charge of Your Federal Career 
- The Book of U.S. Government Jobs 
Distribute these FREE tools to others that are planning their retirement
- 2013 Excel Leave Chart (target 2013 retirement dates and determine exact leave balances for each date)
- 2012 Excel Leave Chart  (target 2012 retirement dates and determine exact leave balances for each date)
- How to be Emotionally and Physically Prepared When You Retire 
- How to be Financially Prepared When You Retire 
- Master Retiree Contact List  (Important contact numbers and information)
- Survivor’s Guide 
- Estate Planning Guide (An 11 part series that will help readers prepare for retirement, understand basic estate planning techniques, and compile their personal “Survivor’s Guide” binder.)
The information provided may not cover all aspect of unique or special circumstances, federal regulations, and financial information is subject to change. To ensure the accuracy of this information, contact your benefits coordinator and ask them to review your official personnel file and circumstances concerning this issue. Retirees can contact the OPM retirement center. Our article is not intended nor should it be considered investment advice. Our articles and replies are time sensitive. Over time, various dynamic economic factors relied upon as a basis for this article may change.
Last 5 posts by Dennis Damp
- GEHA Standard to Blue Cross Blue Shield Basic Plan Comparison - 2021  - October 23rd, 2020
- Health Care Premiums Rising for 2021 - What Else is New!  - October 19th, 2020
- 2021 COLA Announced and Annuity Projection Calculator  - October 13th, 2020
- 2021 Leave Chart & Schedule Tracker Now Available  - October 9th, 2020
- The 2020 Election - Voting This November  - October 1st, 2020
- FEDVIP Options for 2021 (New Providers Added)  - September 26th, 2020
- Required Retirement Application Forms  - September 18th, 2020
- 2021 COLA and the 2020 Health Care Open Season  - September 12th, 2020
- Health Plan Comparisons – The Good News  - September 4th, 2020
- There is No Vaccine for Rioting  - August 28th, 2020
- Survivor’s Checklist Update  - August 22nd, 2020
- Savings Bond Redemptions & Memoir Update  - August 14th, 2020