Attention seniors! Your Social Security payment could shrink next year

Posted on October 15, 2009. Filed under: Social Security Administration | Tags: , , , , , , , , , , , , , |

by Connie Madon

This news comes on the eve of an announcement by the Social Security Administration stating that there will be no “cost of living” this year. By law, increases in Social Security payments are tied to the cost of living, or COLA. Since there is no inflation this year, there will be no increase in Social Security benefits. This would be the first year since 1975 with no increase.

The problem with COLA is that it is calculated on the basis of “core CPI,” which excludes food and energy. This has been a big flim flam for seniors ever since the beginning because food and energy have been two areas where the biggest increases in living costs can be found. We are going to be paying more to heat our homes this winter than last, and prices at the supermarket are not going down.

The $250 payments would also go to those receiving veterans benefits, disability benefits, railroad retirees and public employee retirees who don’t receive Social Security.

Should the COLA be changed to include the costs of food and energy?

Great article from Bloggingstocks.com

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