Due to falling consumer prices, the government recently announced there will be no cost of living adjustment (COLA) for Social Security recipients for the 2010 year. Since automatic increases were put on the books in the mid-seventies, this is the first time there will not be an automatic year-over-year increase in the checks millions of retirees receive every month. (For the year 2009, benefits checks increased by approximately 5.8% - the largest increase in nearly 30 years.)
The primary reason for the lack of a 2010 increase is that consumer prices have declined 2.1% since the third quarter of 2008. (Social Security's cost-of-living adjustment, by law, is based on the change in consumer prices from the third quarter of one year to the next.)
You may have heard that there is growing political enthusiasm now for a one-time $250 payment to Social Security recipients to help them deal with the lack of an increased Social Security payment. So, I'm curious, what do you think about the lack of a cola? Furthermore, what do you think about the one-time payment? There's a section below for open-ended comments and a poll to participate in. I look forward to our lively discussion.
I don’t understand why $250 should be given if indeed the COLA is based on “cost of living” increase or decrease. It went down, right? No reason for a “bonus” payment…..and where are all these “little” payments coming from?
The Social Security cost of living adjustment is messed up!
http://robvstate.com/2009/10/10/social-security-cola/
Frankly, any “help” from the grabernment, especially Obama and his acolytes, come with all kinds of strings attached. In general, I am opposed to grabernment pandering and that is what this is.
$250 is nothing – a drop in the bucket. It’s an insult to think that $250 will make a difference. If that’s all the government can afford, then the government should keep it, because they obviously need it more than we do.
It all comes out of one pocket only to go into the other. Remember the last words of the sinking Titanic’s Captain…”Every man for himself”…the gov ain’t gonna take care of ya; that’s your job!
The Law is the Law. SS recipients get more than we who still work will ever see, and $250 is not going to make a difference. Gee, do you think politicians are pandering to the (older) voters?
The reason given for no cola in 2010 was a decline in consumer prices !!!??
Food, utilities, clothing, transportation, housing, medical cost and all necessary expenses are increasing for the ones that can afford it less.
WOW
In answer to Jan T:
This year the insurance companies went nuts and decided to institute HUGE donut holes, in fact there are NO policies available any more without this. Donut hole means that you continue to pay premiums all year even though you now have to pay 100% for all your prescriptions.
Also, Social Security insurance went up so the amount the person receives is smaller. That should be accounted for in the COLA IMO.
this non increase also includes veterans i really can’t believe the consumer index went down where i live heat,electric and food have gone crazy nevermind gas i think we are doomed very depressing
To what I understand not everyone on Social Security with receive the payment. And if you do it’s because you hit that middle ground in your medication co-pay. For people like me I just don’t get the meds if I can’t get them at Walmart for $5. I can’t afford that so I don’t make it to the donut hole so to speak. I few extra dollars a month would have been nice.
Private sector retirees’ pensions rarely, if ever, have a Cola.
So these retirees are completely exposed to the ravages of inflation. Regardless of the Govment’s claim of no inflation, a retirees costs continue to increase. Govment’s focus is on the “middle class’, the working middle class, and it forgets the huge percentage of retirees. But retirees won’t forget come the 2012 elections. That’s a guaranree.