Low inflation and recession have brought on Social Security to abandon a cost of living adjustment (COLA) for the second time since COLAs were instituted by The legislature back in 1975. According to the Associated Press, 2010 was the first year without a COLA for Social Security, and 2011 will be the second. Inflation is too low, which makes the Social Security COLA inadvisable, said the Social Security Administration.
Resource for this article - Low inflation means no Social Security COLA in 2011 by Personal Money Store
Social Security COLA has not happened yet even though Congress has yet to choose
The annual COLA that is supposed to come to those retired and disabled on Social Security is what 58 million Americans in these programs want each year. Each Social Security recipient would get $250 with the bill that the House of Representatives will be voting on in November as this is the second year that there has not been a raise in benefits. House Speaker Nancy Pelosi hopes to move the bill through the House, however the AP indicates that there is already stiff opposition within the Senate. This bill would make more people unhappy with the retired Americans within the country. They're a heave burden on America. COLAs aren't happening which is bad since the cost of living is increasing when savings and home values are really low.
83 years old retiree Betty Dizik told the AP, "We're a little bit upset because our bills are going up and our Social Security isn't," apparently. The $1,200 a month Social Security check coming in for Dizik is her only source of income. She is not in any kind of special situation. $1,072 a month is the average amount a Social Security check brings in. According to the Social Security Administration, Social Security checks are the only source of income for 64 percent of those receiving it. This is what was reported in 2008.
Last time there had been a Social Security COLA, it was large
Social Security is currently supported by a 6.2 percent payroll tax paid by workers and employers. $106,800 is the maximum wage cap where the tax is nevertheless being applied. The largest boost in 27 years was done in January 2009 with a 5.8 percent boost. This was, according to the AP, the last Social Security COLA. Energy prices increased a ton. That is what led to the COLA being so big.
By law, a Social Security COLA won't occur again until consumer prices rise above 2008 amounts. The plan right now is that in 2011 the COLA can rise 1.2 percent to start in January 2012, according to the Social Security Administration.
Articles cited
Associated Press
msnbc.msn.com/id/39684354/ns/business-eye_on_the_economy/
Resource for this article - Low inflation means no Social Security COLA in 2011 by Personal Money Store
Social Security COLA has not happened yet even though Congress has yet to choose
The annual COLA that is supposed to come to those retired and disabled on Social Security is what 58 million Americans in these programs want each year. Each Social Security recipient would get $250 with the bill that the House of Representatives will be voting on in November as this is the second year that there has not been a raise in benefits. House Speaker Nancy Pelosi hopes to move the bill through the House, however the AP indicates that there is already stiff opposition within the Senate. This bill would make more people unhappy with the retired Americans within the country. They're a heave burden on America. COLAs aren't happening which is bad since the cost of living is increasing when savings and home values are really low.
83 years old retiree Betty Dizik told the AP, "We're a little bit upset because our bills are going up and our Social Security isn't," apparently. The $1,200 a month Social Security check coming in for Dizik is her only source of income. She is not in any kind of special situation. $1,072 a month is the average amount a Social Security check brings in. According to the Social Security Administration, Social Security checks are the only source of income for 64 percent of those receiving it. This is what was reported in 2008.
Last time there had been a Social Security COLA, it was large
Social Security is currently supported by a 6.2 percent payroll tax paid by workers and employers. $106,800 is the maximum wage cap where the tax is nevertheless being applied. The largest boost in 27 years was done in January 2009 with a 5.8 percent boost. This was, according to the AP, the last Social Security COLA. Energy prices increased a ton. That is what led to the COLA being so big.
By law, a Social Security COLA won't occur again until consumer prices rise above 2008 amounts. The plan right now is that in 2011 the COLA can rise 1.2 percent to start in January 2012, according to the Social Security Administration.
Articles cited
Associated Press
msnbc.msn.com/id/39684354/ns/business-eye_on_the_economy/
