According to several news sources it appears unlikely that there will be a cost of living adjustment (COLA) increase for Social Security in 2011. This would be the second year in a row without an increase. The COLAs are set automatically according to the Consumer Price Index for Urban Wage Earners and Clerical Workers. This index has been used since 1975 Since the CPI-W is still not at the levels it was in 2008 the measure does not call for increases to Social Security.
Many feel that the CPI-W does not accurately reflect inflation as it applies to the elderly. With Social Security already facing shortfalls it is doubtful Congress would adopt a different measure that would lead to more and larger increases in Social Security benefits. It is possible that there will be a special one-time payment of $250 if Congress passes a bill calling for one. A similar measure this year did not pass though.
On the bright side it is predicted that there will be sufficient inflation as measured by the CPI-W to lead to an increase in 2012.
Visit the Social Security website for more information on how COLA benefits are calculated.
Comments
5 responses to “No Social Security COLA Increase in 2011”
Social Security recipients always cry that they’re on a fixed income. Interestingly, they often receive a cost of living increase. Let’s think about those who have lost their jobs, had their pensions frozen or wiped out, or who have had pay cuts. I bet they would be thrilled to have a fixed income.
Yes, Bob, let’s think about those people. In ten or twenty years they will be receiving Social Security as well- because they ALSO spent a majority of their life paying into the system. They can apply for unemployment. Not many eighty year olds can do that (even though many paid into that system as well and never used it). They are being pressed for more taxes on the houses they saved up for and paid off. Renting for an elderly person is not very likely- unless they can luck into public housing. Of course they have paid for public housing since the sixties- so it should be easy to get in—right?
Yes, Bob, let’s think about everyone else- because you will one day BE that everyone else!
Welcome to reality.
Without real economic growth, social security benefits cannot be sustained at their current levels. Most people are living too long, and too many more are retiring.
In case no one told you, Social Security is not a pension system. There is no Trust Fund. There is no “lock box”. Its just monies taken out of the pockets of the working stiffs, bungled by a middleman, then given to other people.
With too many people living too long, and fewer people working, earning less money, something has to give, and it will.
No problem Joe-
You might want to check out this article
http://articles.moneycentral.msn.com/RetirementandWills/CreateaPlan/5mythsAboutSocialSecurity.aspx
Your reality is a mix of media who like to make sure that you are scared enough to buy the gold funds that they sell and then build large houses in Central America on…..
You all are totally not getting it. It is easy for those of you still to young for SS to make these opinions. First off many people do not have means to any other future retirement benefits such as 401’s or savings as they do not make enough if there are such to invest, or are worked shorter hours and do not quality. Yet taxes are still taken out of their checks and not your working class stiffs check. We have been there done that and are grateful but we also paid for it.
The truth is this. Social Security is filthy rich. Last year alone there was 14 billion dollars in unclaimed Federal Income tax and 2 billion SS dollars in the bank from Illegal workers that cannot file returns. They are using our maybe your SS number (and its known as soon as they do as a red flag goes up) especially after 911. And our government allows it as they are keeping Federal, State, FCI, SS, and what ever other bogus tax they take from their paychecks.
When you point a finger at Seniors 3 are pointing back at you as your day is coming. Many Seniors also went through the depression having to steal milk bottles to sell, commiting suicide, working in slave mills away from family for months add infinitum, so its not new people lose their jobs, and to say we do not deserve a raise on already below poverty wages which many widowers are eating dog good is appaling and you should be ashamed.
There is no justification for not giving Seniors, Vets, and Disabled the pittance they have always gotten every year since SS started. Obama wants us dead, you talk this nonsense… remember what goes around comes around. If you do not fight for and condone what they are doing you are setting yourself up for no Social Security, so hope you have a fantastic pension coming to offset it.
Disgusted.