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Social Security payments shrink



WASHINGTON   — Millions of older people face shrinking Social Security checks next year, the first time in a generation that payments would not rise.

The trustees who oversee Social Security are projecting there won’t be a cost of living adjustment (COLA) for the next two years. That hasn’t happened since automatic increases were adopted in 1975.

By law, Social Security benefits cannot go down. Nevertheless, monthly payments would drop for millions of people in the Medicare prescription drug program because the premiums, which often are deducted from Social Security payments, are scheduled to go up slightly.

‘‘I will promise you, they count on that COLA,’’ said Barbara Kennelly, a former Democratic congresswoman from Connecticut who now heads the National Committee to Preserve Social Security and Medicare. ‘‘To some people, it might not be a big deal. But to seniors, especially with their health care costs, it is a big deal.’’

Cost of living adjustments are pegged to inflation, which has been negative this year, largely because energy prices are below 2008 levels.

Advocates say older people still face higher prices because they spend a disproportionate amount of their income on health care, where costs rise faster than inflation. Many also have suffered from declining home values and shrinking stock portfolios just as they are relying on those assets for income.

‘‘For many elderly, they don’t feel that inflation is low because their expenses are still going up,’’ said David Certner, legislative policy director for AARP. ‘‘Anyone who has savings and investments has seen some serious losses.’’

About 50 million retired and disabled Americans receive Social Security benefits. The average monthly benefit for retirees is $1,153 this year. All beneficiaries received a 5.8 percent increase in January, the largest since 1982.

More than 32 million people are in the Medicare prescription drug program. Average monthly premiums are set to go from $28 this year to $30 next year, though they vary by plan. About 6 million people in the program have premiums deducted from their monthly Social Security payments, according to the Social Security Administration.

Millions of people with Medicare Part B coverage for doctors’ visits also have their premiums deducted from Social Security payments. Part B premiums are expected to rise as well. But under the law, the increase cannot be larger than the increase in Social Security benefits for most recipients.




Comment Blog - Note: All Comments Subject To Approval

FDRAllOverAgain wrote on Sep 3, 2009 2:53 PM:

" OK my little tardlings, bring your nappy pads up a little closer and I'll show you a picture of why not only SS and Medicrash are doomed for failure, but quite possibly the collapse of our economy. Your government is raping you, your children and your children's children and most of you don't have a clue of how and why. Those of you with an American Idol watchers IQ, don't bother looking at the pretty picture, you won't understand and besides you can't vote from your phone.

zerohedge.com/sites/default/files/images/SeanMaloneRiseFallDollarLarge.jpg "

old guy wrote on Sep 2, 2009 4:05 PM:

" Social Security was never meant to be your only income. Go back and read the history of it. It's there to help, but we are each responsible for ourselves. I spent years planning for my retirement because I never expected a free ride. Where did you people miss this?? "

Susan is an ignoramus wrote on Sep 2, 2009 7:02 AM:

" Susan, if seniors' only income is Social Security they have no one to blame but themselves. All of us "young bucks" who are paying these Social Security benefits today are told that we better be saving $ as we may not see Social Security benefits at the same rate they are being paid today. Yet, you expect us to care about the old folks who apparently were dumb enough not to plan ahead. Whoops, their bad! "

inform yourselves wrote on Sep 2, 2009 6:55 AM:

" FYI-- there is a federal law that prevents medicare premiums increases from exceeding COLAs and effectively reducing the amount of Social Security benefits that one can receive. Thus, unless you either have Medicare premiums deducted from a Federal Pension or if you pay your premiums by mail you will not experience an increase in your monthly medicare premiums. The author of this article is apparently ignorant and didn't bother informing himself regarding the rules before he decided to write this article. All of this information is available at ssa.gov if you are not lazy and are willing to actually do a little personal leg work. Or, you can call your local SSA office at 541-889-7446 "

FDRAllOverAgain wrote on Sep 1, 2009 6:11 AM:

" Why SS & Medicare won't last:
Excerpts from a recent interview
Preparing for the Worst
by Robert Kiyosaki
Monday, August 24, 2009

3. Old frogs don't hop. Another reason I am cautious about the future is that the Western world has a growing number of old frogs. Between 1970 and 2000, the economy responded to bailouts and stimulus packages because the baby boomers of the world were entering their greatest earning years -- their purchasing power increased, and demand for homes, cars, refrigerators, computers, and TVs boosted the economy.

The stimulus plans seemed to work. But when a person turns 60, their spending habits change dramatically. They stop consuming and start conserving like a bear preparing for winter. The economy of the Western world is heading into winter. Hot wires and hot money will not get old frogs to hop. Old frogs will simply join the bears and stick that money in the bank as they prepare for the long, hard winter known as old age. The businesses that will do well in a winter economy are drug companies, hospitals, wheelchair manufacturers, and mortuaries.

4. The dying frog economy will lead us to the biggest Ponzi schemes of all: Social Security and Medicare. If we think this subprime financial crisis is big, it's my opinion that this crisis will be dwarfed by the crisis brewing in Social Security and Medicare... Medicare being the biggest crisis of all. As old frogs head for the big lily pad in the sky, they will demand young frogs spend even more in tax dollars just to keep old frogs from croaking. "

omiom wrote on Aug 31, 2009 7:45 AM:

" Y'all just need to pack it up and move it on in to high density section 8 public warehousing. Take delight to see that there's plenty left over to collect big sacks of empty beer cans and, you can a have a couple miserable yapping dogs to squat in the yard too. Oh, never mind the colorful plastic toys scattered around, the kids get tired of them and start filling the grounds with any rock they can lift. Smarten up, stop whining. There's a convenient dispensary next door for you medical marijuana if you don't mind a well worn path and frequent fliers. Feel safe and secure. The cops, paramedics and fire department will not be strangers either. "

FDRAllOverAgain wrote on Aug 27, 2009 3:37 PM:

" Barack's Question:
"Do you want the government to do something, or to do nothing?"

I choose none of the above, I want the government to stop doing something: digging.

When the economy is tanking due to 40:1 paper leverage on top of soon to be $12T government debt, it is important to understand that borrowing more paper (increasing the leverage working against you) will make the problem proportionately worse.

Q: Why is this so hard to understand?
A: It's not.

If you've max'd out 40 credit cards just to make minimum payments on the first one, then the next, and so on, who in their right mind would think that number 41 is the charm? No one.

Conclusion: Foul play. Thievery. Treachery. Treason. Corruption to the rotten core.
BushObama are one in the same...handled and controlled by the same players. Ya'll need to wake up to the fact that S.S. is just pablum to subdue and placate the masses. "If you're really, really good we'll give you some COLA. If you're not, you go to bed hungry"...we evidently have been very bad. "

Larry wrote on Aug 26, 2009 4:57 PM:

" I saw what BUSH did to our future juss sayin. McCain? He never did mention the middle class now did he? Don't get me wrong. I like McCain but why did he not mention the middle class?

To blame Obama is premature at best. "

To Fred wrote on Aug 26, 2009 11:26 AM:

" Go Back to school. Twenty years from now there will be no Social Sec. checks so just feel lucky. Im paying every year for it and it will never be an option for me. Maybe Obama can sell me one of those cluckers. I have seen cars in there that are a lot better then mine. "

Susan wrote on Aug 26, 2009 4:05 AM:

" Not giving a cost of living raise to all people collecting social security is very unfair. I guess it's true what they say. They will probably take away the raise for the seniors and disabled to give to the welfare recipients or all the illegials that we have in this country taking advantage of the system. People who are American citizens and have worked all their life to be able to collect their social security should be entitled to a cost of living raise as that is the only income for most seniors. "

Charles Loden wrote on Aug 26, 2009 3:42 AM:

" It is time that our government stops screwing the elderly people of this country,who have paid their taxes and supported the government no matter who was in office. We should stop electing the wrong people or contractually hold them responsible for what they promise to do in office. We should take back our right of a government for the people! "

william dilts wrote on Aug 26, 2009 3:35 AM:

" My wife is ons.s disability and will be going in for a liver transplant soon.I am 63 years old and cant afford to retire. This government decision could put us into financial ruin and affect my wifes surgery. It is a sad day when you cant afford to live......
This may be the cause of more suicides than fammon in third world countries. Or are we now considered a "third world country.????? "

Dana wrote on Aug 26, 2009 2:51 AM:

" Look people can't you see what your leader Obama doing to your children and future grandchildren, He's socilism has lead america into bankrupt. Yeah! elected a community organizer and he organized the country into debt. If McCain was our president he would take care of our troops, seniors citizens, create jobs and more jobs. I sure hope put democrats out of office and bring my country back for our future generation. "

Fred wrote on Aug 25, 2009 6:58 PM:

" Had Bush nto squandered all teh Federal Money in Iraq we would nto be havign to live in Poverty. iraq never started teh war anyway. besides, why can't Bin lden be captured or is he in hiding that Cheny has found a place for him to hide. "


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