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Social Security adjustment may be lower

This will hurt the Seniors on fixed incomes.  The cost of living has far outpaced the COLA From the AP:

The nation’s nearly 49 million Social Security recipients are in line to get a smaller average increase in their monthly benefit checks in 2007 than they did this year, though less of the gain will be eaten up by rising Medicare premiums. Private economists are predicting an increase of around 3.4 percent for 2007. That follows a benefit increase of 4.1 percent this year, which was the largest percentage rise in 15 years. The Social Security Administration was to announce the 2007 cost of living adjustment, or COLA, on Wednesday. Social Security recipients will see the increase reflected in their January checks. Mark Zandi, chief economist at Moody’s Economy.com, said he expected the increase would be 3.4 percent, which would translate into an increase of around $34 for the average Social Security recipient, currently getting a monthly check of $1,011. The COLA amount is based on the rise in the Consumer Price Index in the July-September quarter of this year compared with the same quarter in 2005. By law, benefit payments for Social Security retirees, the disabled and persons earning Supplemental Security Income are adjusted each year to keep inflation from eroding the benefits.

snip

“Seniors should be helped by the drop in energy costs, which will make their heating bills more tolerable, and the lower increase in health premiums,” said David Wyss, chief economist at Standard & Poor’s in New York.

Advocates for the elderly said the cost of living adjustment was a critical safety net for the nearly one-third of retirees who rely on Social Security for 90 percent or more of their income.

“The COLA is more than helpful. It is crucial,” said David Certner, legislative policy director for AARP, which represents people 50 and older. “Without the COLA, you would see the purchasing power of retirees cut in half in a 15-year time period.”

President Bush, who pledged to make overhaul of Social Security and Medicare top priorities in his second term, has seen his plan to partially privatize Social Security run into stiff opposition in Congress.

He and Treasury Secretary Henry Paulson have pledged to continue searching in Bush’s final two years in office for a solution to the funding problems both programs face with the looming retirement of 78 million baby boomers.

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October 18, 2006 - Posted by | Current News, Uncategorized

2 Comments »

  1. The 19th century lasted from 1801 through 1900 in the Gregorian calendar. Historians sometimes define a Nineteenth Century historical era stretching from 1815 (The Congress of Vienna) to 1914

    Comment by Ted | January 11, 2007

  2. agree man

    Comment by jambomb | January 24, 2007


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