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Category: Financial and taxes in retirement

Update: October 15, 2010 - It’s official - no social security increase in 2010 - $250 payment pushed.
It will be the first time in 3 decades, but there will be no cost-of-living increase for social security recipients in 2010. Following a formula set by law to counter the effects of inflation, beneficiaries can usually count on getting a “raise” every year. Thanks to the economic slowdown, inflation is not a problem at the moment, hence the formula indicates no increase next year.
According to the AARP, beneficiaries have received automatic cost-of-living every year since 1975. The increase in 2009 was 5.8%. Controlling inflation should be a good thing for retirees because it means the prices they pay for goods and services are not increasing.
A “no increase” result has implications for Medicare beneficiaries who payPart B premiums. Approximately 3/4 of recipients are protected from increases in their Part B premiums: their premiums cannot go up more than the dollar amount of their Social Security increase. The remainder of recipients can probably expect an increase in their premium from $96.40 to $119 in 2010. Premiums for drug coverage could also go up.
About one in four (or about 11 million) beneficiaries are not protected from a Part B increase because they:
- do not have Part B premiums withheld from their Social Security income, or
- have a higher income and therefore pay a higher Part B premium, or
- recently enrolled for Part B.
For further reference:
AARP article on Part B Premiums
Congressional Budget Office blog on Zero Increases
When Should I Start Taking Social Security
Posted by Admin on May 8th, 2009
Entries (RSS)
and Comments (RSS)
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11 Comments
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they can bail out gm, and all the poorly run banks
but they can’t give the greyhair slobs a 2% raise.
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May 16th, 2009 | #
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How in the world can the Obama team & yes, Hilary Clinton GIVE so much of our US dollars to these foreign countries (especially those countries that HATE our guts, i.e. Muslim countries) when we have so many people here in the US out of work; No medical, no retirement, many w/NO homes now & many with not even enough money to buy decent food. What’s wrong with our LEADERS??? Think they’ve lost their minds & especially their responsibility on “Taking care of your people first, then [maybe] the rest of the world!” With our present leaders, this country is on the fast road to destruction!!! We’ve never been so disappointed in our government & leaders as we are now!!!
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May 18th, 2009 | #
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I think it is sad that we have come to this, The Seniors are the ones that will suffer becaus of Obama 7 Family doing all this traveling every week on Air Force One using up the money that is due us in our Social Security.
sell us out to foreign countries. Vote Republican and we will get a cost of Living rais ein our SS
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July 6th, 2009 | #
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i have been writing to president obama as to why does the fed gov get to keep over $600 of my deceased social security check..you are punished by the fed gov or social security if you are younger than 62..i’am becamse disable with 5 bypasses..i could sure use that money to have my own home and buy healthy food..the way it is now..i have to live my daughter..and eat whatever they cook..why does the fed gov get to keep part of my deceased husbnads money he worked over 30 years for the same company and paid it all in..but i can’t get it..so look out if you are younger than 62 and become disable..the fed gov will punish you too for getting sick..i had someone to tell me at social security..that if i waited until age 62 i could have got it all..i couldn’t wiat..i didn’t have a choice..
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July 30th, 2009 | #
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Why doesn’t the U.S. Congress just uncap the maximum salary people pay into Social Security. At present the maximum people pay into Social Security is $6,621. that’s 6.2% of $106,800. annual pay. Social Security payments should have no cap, if you make over $106,800.00 a year you keep paying 6.2% on every thing you make a year.
Example you make $500,000. a year you would pay $31,000. into Social Security.
If you make $5,000,000. a year you would pay $310,000. into Social Security.
If you made $10,000,000. a year you would pay $620,000. into Social Security.
This would cure all the money problems Social Security has and allow a cost of living increase every year. My point is if you make more you pay more into Social Security.
Who is fighting congress for us on this matter of no cost of living increase?
ALL THE BEST; Ed Smith
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August 8th, 2009 | #
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Sorry no increase this year they spent all our tax money on stimulus and cash for clunkers.
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August 22nd, 2009 | #
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I cannot believe these comments! If the inflation is ZERO, why should we get a “cola” increase? Think about it. Yes, I know this is a recession-depression but the law was made for inflation, no inflation NO increase.
Be grateful we have a country that does have some sort of retirement/disablity benefits. The Great Depression and the democrat in office (then) got Social Security passed, quit blaming the Pres. for no increase. Think of those with no jobs and out of unemployment and no health insurance. If you left retirement funds to unregulated Wall Street and Banks, look what happened. Those “foxes” ate all the chickens and got fat dong it. Sad to say, people need to police themselves, if they can’t then someone honest needs, too.
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August 23rd, 2009 | #
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Question. Can this still be over turned and they decide to indeed increase benifets? If you know the answer feel free to e-mail me.
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August 24th, 2009 | #
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this is just another way of punishing people for growing old. i hope that our govenment remembers that one day thay also will be old but still have life in them. obama will not always be young and neither will his wife and children i pray to GOD that he thinks about this before it is to late to turn back
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September 2nd, 2009 | #
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Ii have emailed on several occasions to the white house (goole white house leave Obama a message) we need to stop letting people from other countries come in to our country take our hard earned money that we work for and give it to them. New Americans as we call them come over because their children live here and then help them get ssi and free medical also. we need to stop this for at least 10 years to rebuild the growth of the social security fund again. I am suppose to retire in 2037 but there will be no money because ity\ is given to some who has not lived or work here all their life whch is wrong!!!
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October 2nd, 2009 | #
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[...] off in our Comments section below. For further reference: When to Start Taking Social Security No Social Security increase planned for 2010 Posted by John Brady on October 15th, 2009 Entries (RSS) and Comments [...]
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October 16th, 2009 | #
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