It’s official, there will be no cost of living adjustment (COLA) for 57 million Social Security recipients in 2010. I wrote about how this subject back in August when the trustees that oversee Social Security made the projection.
Last year, driven by a spike in energy prices, Social Security recipients received a 5.8% COLA. Not this year. Social Security COLA rates are tied to the rate of inflation, which is measured by the consumer price index (CPI). Energy prices have dropped since last year, which adjusted the CPI downward, meaning no COLA.
This is a problem for older adults, because:
- many live on a fixed income;
- they spend a lot of money on health care, where prices far outpace inflation;
- anyone living in the real world knows living expenses have only gone up!
In lieu of a COLA, President Obama is urging a $250 “emergency payment.”
This is not a new idea. Social Security recipients received a one-time $250 payment in February as part of the government’s economic stimulus package. The average Social Security payment for all recipients is $1,094 a month. The White House estimates that this $250 payment will cost about $13 billion over 10 years. The cost will likely add to the national debt.
Is the $250 payment a smart idea or no?
{ 6 comments… read them below or add one }
The Social Security cost of living adjustment is messed up!
http://robvstate.com/2009/10/10/social-security-cola/
I am 65 disabled cannot work have 4 screws in my spine,cannot set or stand for any length of time. I do not even get $1084/mo. which is the average. The gov. could care less about seniors or any other people who have trouble making in this world. They all have health Ins. and whatever else they need. The gov. would rather we all die. When actually we would have plenty money in Social Security if would have not used that money to fund other short falls.
Are we going to get a $250 stimulus foe 2010. I am disabled and trying to care for my mother on the measly check I receive from social security. My mother received very little also. She has worked 40 years and I have worked 31 years until I became disabled. Yes, we are thankful what we receive. The only major problem I have is that my tax dollars goes to support others who does not want to work. I cannot receive food stamps because I make $8.00 a month too much. Please tell me what is wrong here.
Sheryl, unfortunately there are many people in situations similar to yours.
No cost of living increase seems a little strange, considering it cost more to survive on a daily basis than it did last year. Also, as seniors get 1 year older, medical expenses are likely to increase.
I think before such a decision is made, the “decider” should be required to fill up his gas tank, drive to the grocery store, stop off at the pharmacy and just spend a day in the real world.
Question: Have the stimulus checks for $250 been mailed yet? I have not received mine. Will the checks be added to the monthly amount?
Thank you.