Inflation's gone and it's not all bad.
No matter what the 50 million Social Security recipients say, there’s really an upside to prices going down.
You see the news, Thursday, that the cost of living declined 2.1 percent between the third quarter of 2008 and the third quarter of 2009 means Social Security beneficiaries won’t get a cost of living adjustment next year.
Congress set it up that way. If inflation goes up, those checks keep pace. If prices go down, the checks stay the same.
Retirees don’t like that, of course. They’ll note that this is the first time they haven’t gotten an inflation-boost since the cost-of-living adjustments began in 1975.
But last year, they got a big raise, a 5.8 percent increase. Their checks went up a lot and they’re staying there, while prices go down.
Another plus: President Barrack Obama has proposed giving Social Security beneficiaries a $250 check next year. It would be a second stimulus.
CCH points out that this works out to equal a 1.8 percent increase in the average monthly retirement check.
If Obama prevails, retirees’ income goes up anyway, even though prices did not.
Harriet Johnson Brackey, the personal finance columnist for the Sun Sentinel, is an award-winning business reporter. Her columns for 2008 were named "The Best in the Business," a national award chosen by her colleagues at the Society of American Business Editors and Writers.
Comments
Most people do not understand that Social Security is a program to SUPPLEMENT whatever other retirement income individuals have saved for. It was not meant to be a full retirement plan.
Posted by: barry | October 16, 2009 10:38 AM
And why did congress set it up this way? Is it for a good reason (what?) or were they just stupid?
Posted by: BCL | October 16, 2009 11:58 AM
And why did congress set it up this way? Is it for a good reason (what?) or were they just stupid?
Posted by: BCL | October 16, 2009 11:58 AM
How is this news not bad? It is horrific if you are one of the unfortunate Americans that pays into Social Security. It's just evidence of how the Gov't never runs out of ways to screw you over.
Posted by: abc | October 16, 2009 12:01 PM
How is this news not bad? It is horrific if you are one of the unfortunate Americans that pays into Social Security. It's just evidence of how the Gov't never runs out of ways to screw you over.
Posted by: abc | October 16, 2009 12:01 PM
Wow, I wonder if Harriet's good news would have been this cheerful if the same thing would have occurred during the previous admininstration.
Somehow, I sure as hell don't think so.
Posted by: WTF????? | October 16, 2009 1:32 PM
How is it bad if your income stays the same? You could be a working schlep like so many people who have had pay CUTs this year. How is it that you're not getting what you deserve? Congress tried to give retirees inflation protection. What's wrong with that? This is the system that we've had for decades, during many, not one, administration
Posted by: Harriet Johnson Brackey | October 16, 2009 2:52 PM
The one thing is that you and your employer put the money in there.DON'T MAKE IT A GIFT.They never show the employer's part on your check so you can see it's 400 hundred not two hundred. Gas may be down for now from an all time high but I do not eat gas and electric is another must which has gone up or you get less for the same
money.It was not meant for
retirement true but with the collapse of the economy a lot of use are in trouble.
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