No Social Security increase is expected for 2011

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WASHINGTON --- The government is expected to announce this week that more than 58 million Social Security recipients will go through another year without an increase in their monthly benefits.

It would mark only the second year without an increase since automatic adjustments for inflation were adopted in 1975. The first year was this year.

"If you're the ruling party, this is not the sort of thing you want to have happening two weeks before an election," said Andrew Biggs, a former deputy commissioner at the Social Security Administration and a resident scholar at the American Enterprise Institute.

"It's not the congressional Democrats' fault, but that's the way politics works," he said.

The cost-of-living adjustments, or COLAs, are automatically set each year by an inflation measure that was adopted by Congress in the 1970s. Based on inflation so far this year, the trustees who oversee Social Security project say, there will be no adjustment for 2011.

The projection will be made official Friday, when the Bureau of Labor Statistics releases inflation estimates for September.

This week's announcement raises immediate concerns for older Americans whose savings and home values haven't recovered from the financial collapse: Many haven't had a raise since January 2009, and they won't be getting one until at least January 2012.

"While people aren't getting COLAs they certainly feel like they're falling further and further behind, particularly in this economy," said David Certner, AARP's legislative policy director. "People are very reliant on Social Security ... and, quite frankly, they have counted on the COLA over the years."

Social Security was the primary source of income for 64 percent of retirees who got benefits in 2008, according to the Social Security Administration. A third relied on Social Security for at least 90 percent of their income.

A little more than 58.7 million people receive Social Security or Supplemental Security Income.

The average Social Security benefit is about $1,072 a month.

Beneficiaries

The Social Security Administration is expected to announce Friday that retirees and disabled Americans will see no increase in benefits for 2011, the second consecutive year without an increase.

A look at who gets benefits:

Total beneficiaries: 58.7 million

Social Security recipients: 53.5 million

Supplemental Security Income recipients: 7.9 million

People who get both Social Security and SSI: 2.7 million

Average monthly Social Security payment: $1,072

Average monthly SSI payment: $499

Early retirement age: 62

Full retirement age: 66, rising to 67 for people born after 1959

-- Social Security is the primary source of income for 64 percent of recipients.

-- One-third of recipients rely on Social Security for at least 90 percent of their income.

-- Associated Press

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SC88fan
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SC88fan 10/11/10 - 07:18 am
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This is so wrong!!! As one

This is so wrong!!! As one who is on Social Security....we are falling farther and farther behind!!!

Techfan
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Techfan 10/11/10 - 07:24 am
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Cut government spending but

Cut government spending but give us more SS and Medicare.

cricketflea
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cricketflea 10/11/10 - 07:29 am
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Hmph! If they think there

Hmph! If they think there has been no raise in costs, just go to the grocery store, try to pay the heating bill, or the electric bill! My social INsecurity dollars certainly do not go as far as they did in 2009 and I KNOW they won't go as far next year as they "have" this year! I worked 33 years and received regular raises every few months while working. I WISH I were still ABLE to work rather than receive this social mess! Is this the 'change' we were promised by that president I did not vote for??? I don't like it one bit!!!!!

Abby-noll
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Abby-noll 10/11/10 - 07:37 am
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The real solution would be to

The real solution would be to get rid of the people using the system that really have no disability whatsoever! People who are legitimately disabled are suffering for other's greed.

By the way, I'm one of the working peon's ... and I took a pay decrease of about 20k a year. Not real happy about it, either... so maybe I just don't have ample sympathy available for people who are at least getting a steady income.

Indigo
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Indigo 10/11/10 - 08:01 am
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This also freezes disable vet

This also freezes disable vet increases since the two are tied together.

dani
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dani 10/11/10 - 08:02 am
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And to think, some "holier

And to think, some "holier than thou"' was complaining yesterday about $10.00 an hr jobs.

These retirees wouldn't know how to act with that kind of money.

bojangles
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bojangles 10/11/10 - 09:40 am
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I am a 25 years old, married,

I am a 25 years old, married, have two very young children, and make a good salary in this country. Often times I hear people, especially from my generation, say how much they resent paying taxes for benefits that we may likely never receive. The Social Security tax is one I am very willing to pay for and if a small increase would help the generations that came before me, I would GLADLY pay it. Our senior citizens have fought wars and have been hung out to dry, they have built companines only to be penalized, and they have made education (which has made me what I am today) more readily availible for the subsequent generations. I am so sick and tired of the political bantering from ignorant people on both sides of the debate. The real wasteful spending in our government comes from a horribly inefficient tax system that rips out 60 cents on every dollar for administrative purposes. We need to move to a fair tax so all the money goes into ONE pot and can be divided much more easily. If you don't want to pay taxes, then don't buy luxuries. A capitalistic economy creates winners by creating losers. Our social programs are to protect those who fall short in society and I will gladly pay taxes for the downtrodden because it is the right thing to do. So many times you hear very "religious" spat essentially racist comments about those who take advantage of social programs, but rarely do they ever generate ideas on how to replace those programs without putting the people who depend on them in a worse situation. Sadly, these issues will never be discussed by our wealthy politicians because the interests that pay for their campaigns would quickly endorse the next puppet.

walrus4ever
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walrus4ever 10/11/10 - 10:08 am
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Food costs are thru the roof.

Food costs are thru the roof. Used to be that where you shopped determined your costs. but no longer. Wallyworld has quietly been lowering the percentage savings compared to national chains. That along with packaging deception and lower quality are all subtle ways of picking your pocket.

KSL
128804
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KSL 10/11/10 - 10:28 am
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http://www.debtproofliving.co

http://www.debtproofliving.com/DPLResources/EverydayCheapskate/VisitorEv...

If you want to see something positive, except for the restaurant business.

smbga
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smbga 10/11/10 - 10:31 am
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oh yes,....and let's not

oh yes,....and let's not forget to say "God bless America" and "I am proud to be an American" I DON'T THINK SO

Chillen
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Chillen 10/11/10 - 10:49 am
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So far there hasn't been much

So far there hasn't been much inflation - deflation more than inflation so I understand the lack of increase this year though I'm sure folks affected aren't happy about it. They need to keep in mind that those of us non-govt employees have LOST 5-30% of our incomes this year. They are better off than many of us. At least their "income" isn't being cut.

On the flip side, the economic experts keep saying that inflation and likely hyper-inflation are coming......so......it's gonna be a wild ride for all of us.

Bottom line. People are drawing WAY more out of social security than they put into it. The system doesn't work. It must be revised. You should get out what you put into it with interest and that's it.

Also, there are many "disabled" people on it cheating the system. Plus others. For example, I was channel surfing the other day and came upon a show called 16 & Pregnant (don't waste your time, it's horrible). This girl - a 16 year old - had a baby. The baby daddy, who was estranged & never even saw the child, was killed in a car wreck. She was applying for his social security benefits for her baby who would get them until the child is 18! He paid NOTHING into the system!!!

Check out this tax receipt. Out of the $5400 that an average American pays in taxes, $1040 - or 20% goes to pay for social security (not their contribution, it is to pay for excess payments) $625 or 11.6% to medicare. So, 31.6% of what taxpayers pay is going to retireees, disabled and the "disabled cheaters". This will only grow once the baby boomers officially retire.

http://blogs.forbes.com/halahtouryalai/2010/10/04/uncle-sam-owes-you-an-...

The federal govt is broke. There is no more money. It's easy to see why. This system must be fixed. Privatize it. Get the govt out of the retirement & healthcare business.

I'll probably never see a dime of what I've paid in to social security.

ruudvonbaron
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ruudvonbaron 10/11/10 - 11:06 am
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SS and Medicare are $107

SS and Medicare are $107 TRILLION in the hole people. They are ponzi schemes that should be eradicated and yet some you complain because the government won't steal more money from other people and give it to you. That is just an unbelievable mentality coming from the greedy seniors in America.

justthefacts
21698
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justthefacts 10/11/10 - 11:27 am
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baron, you know, you are like

baron, you know, you are like a broken record on this issue. I think we all know how you feel. Having said that, what do you wish these "greedy seniors" to do? Exactly? You know they didn't set up this ponzi scheme. It was forced on them by the feds. I'm pretty sure that most of them would gladly take their contributions back and never bother Uncle Sam again. Lastly, assuming you live long enough, are you going to refuse your SS check when it comes?

gaspringwater
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gaspringwater 10/11/10 - 02:19 pm
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No COLA next year. Ain't that

No COLA next year. Ain't that a shame.

http://www.bls.gov/news.release/empsit.nr0.htm

According to the Bureau Of Labor Statistics: There are 14.8 million unemployed people and 9.5 million involuntary part-time workers and 1.2 million discouraged workers who've given up looking for work.

"I complained I had no shoes, untill I met a man who had no feet" - The Gulistan of Sa'di, Chapter III, Story 19

gaspringwater
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gaspringwater 10/11/10 - 02:34 pm
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Privatize Social Security.

Privatize Social Security. Get the government out of it! Trust your golden years to the Wall Street crooks who'd sell people into slavery for a profit, if the government allowed them.

Chillen
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Chillen 10/11/10 - 02:39 pm
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ooohhh those EVIL private

ooohhh those EVIL private companies. Government IS the answer to everything for liberals.

Give me a private business over government any day of the week. Less crooks there, that's for sure.

justthefacts
21698
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justthefacts 10/11/10 - 02:45 pm
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Privatize it? Oh heck no. The

Privatize it? Oh heck no. The feds are doing a great job with the program!

gaspringwater
3
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gaspringwater 10/11/10 - 02:59 pm
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Self-employed people don't

Self-employed people don't have to participate in Social Security and most don't until the last minute. They don't miss an opportunity to get benefits from the working class.

justthefacts
21698
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justthefacts 10/11/10 - 03:27 pm
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I'm sure most people on this

I'm sure most people on this blog know that self employed people must pay the Self Employment tax which goes toward social security and medicare. Notice I said "most people".

Chillen
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Chillen 10/11/10 - 03:46 pm
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I own a business and am

I own a business and am self-employed. I pay social security on myself, my spouse and my employees. You don't know what you're talking about gaspringwater.

corgimom
32161
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corgimom 10/12/10 - 12:37 am
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"She was applying for his

"She was applying for his social security benefits for her baby who would get them until the child is 18! He paid NOTHING into the system!!! "

No, Chillen, it doesn't work that way. A worker must work for a certain amount of time and earn a certain amount for their child to be eligible for survivors' benefits.

However, if they don't qualify for survivors' benefits, the baby mama then goes to Social Services and gets AFDC- Federal, state, doesn't much matter.

corgimom
32161
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corgimom 10/12/10 - 12:38 am
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Chillen, you rock. I paid SS

Chillen, you rock. I paid SS taxes on myself when I owned a business, too.

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