Social Security benefits taking big jump - Mercedes-Benz Forum

LinkBack Thread Tools Display Modes
post #1 of 1 (permalink) Old 10-16-2008, 05:55 AM Thread Starter
Jakarta Expat's Avatar
Date registered: Aug 2006
Vehicle: PM me to Join the Expat Muslims for Obama Club........
Location: Jakarta, Indonesia
Posts: 17,697
Mentioned: 0 Post(s)
Quoted: 4 Post(s)
(Thread Starter)
Social Security benefits taking big jump

Social Security benefits taking big jump

WASHINGTON (AP) - Social Security benefits for 50 million people are expected to go up next year by the largest amount in more than a quarter-century.

The new cost-of-living increase, to be announced Thursday by the Social Security Administration, is expected to be above 5.5 percent. That would make it the largest increase since a 7.4 percent jump in 1982. The increase for 2008 was 2.3 percent.

A 5.5 percent increase would mean about $60 a month more for the average retiree. Even with the gain, the fatter Social Security check still may seem puny to millions of retirees battered this year by huge increases in energy and food costs. They've also watched helplessly as their retirement savings have been assaulted by the biggest upheavals on Wall Street in seven decades.

"Right now many senior citizens are feeling depressed because things seem out of control," said Sung Won Sohn, an economics professor at the Smith School of Business at California State University. "They feel like they are in a boat being whipped around by rough seas."

The market turbulence has continued this week with the Dow Jones industrial average plunging by 733 points on Wednesday, the second largest point drop on record. Earlier this month, the Congressional Budget Office estimated that Americans' retirement plans have lost as much as $2 trillion over the past 15 months - above 20 percent of their value - because of all the market upheaval.

With all the gloomy news, retirees may take little comfort in the new cost-of-living adjustment. The increase would have been even higher, but after racing ahead earlier in the year, energy costs began dropping in August, helping to moderate the overall price gain.

The rise in the cost-of-living adjustment is expected to be a sharp departure from recent years. The COLA increases have been below 3 percent for all but three of the past 15 years as the Federal Reserve was generally successful in its efforts to keep inflation under control.

Even with the big increase, the COLA still would be well below the gains of the late 1970s and early 1980s, when the country was in the grips of a decade-long bout of high inflation. The biggest cost-of-living jump on record was a 14.3 percent increase in 1980. Social Security benefits have been adjusted every year since 1975.

In one break for most retirees, the cost-of-living increase will not be eaten up by higher monthly premiums for the part of Medicare that pays for physician services. Because of gains in the Medicare Part B trust fund, that premium will hold steady at $96.40 a month, although higher-income people, including couples making more than $170,000 annually, will see their premiums increase.

Next year's cost-of-living increase will go to more than 55 million Americans. More than 50 million of them receive Social Security benefits, while the rest get Supplemental Security Income payments for the poor.

Sens. Barack Obama and John McCain have sparred over Social Security during the presidential campaign, although neither has provided much insight into how he would fix the government's largest entitlement program, which is facing severe strains with the upcoming retirement of 78 million baby boomers.

If no changes are made, the Social Security trust fund is projected to deplete its reserves in 2041 and will begin paying out more than it collects in benefits in 2017. That would force the government to borrow more, cut spending in other areas or raise taxes to keep benefits at current levels.

My Way News - Social Security benefits taking big jump
Jakarta Expat is offline  
Sponsored Links

  Mercedes-Benz Forum > General Mercedes-Benz Forums > Off-Topic

Quick Reply

Register Now

In order to be able to post messages on the Mercedes-Benz Forum forums, you must first register.
Please enter your desired user name, your email address and other required details in the form below.

User Name:
Please enter a password for your user account. Note that passwords are case-sensitive.


Confirm Password:
Email Address
Please enter a valid email address for yourself.

Email Address:


Human Verification

In order to verify that you are a human and not a spam bot, please enter the answer into the following box below based on the instructions contained in the graphic.

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools
Show Printable Version Show Printable Version
Email this Page Email this Page
Display Modes
Linear Mode Linear Mode

Similar Threads
Topic Author Forum Replies Last Post
Social Security Taxes Qubes Off-Topic 12 09-01-2008 04:18 PM
Can Social Security Benefits be Garnished? Minkoff W126 S,SE,SEC,SEL,SD,SDL Class 5 05-06-2008 08:31 AM
Why all the lying about Social Security? FeelTheLove Off-Topic 165 02-25-2005 10:43 PM
Social Security: read on.... spine911 Off-Topic 7 01-24-2005 09:02 AM
Big social for the east coast? Beauf Events 11 12-09-2004 12:05 PM

Posting Rules  
You may post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On


Title goes here

video goes here
description goes here. Read Full Story
For the best viewing experience please update your browser to Google Chrome