No Social Security Increase in 2010

Category: Financial and taxes in retirement

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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

29 Comments »

  1. they can bail out gm, and all the poorly run banks
    but they can’t give the greyhair slobs a 2% raise.

    by harris m freedman — May 16, 2009

  2. 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!!!

    by Pat D — May 18, 2009

  3. 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

    by Helga J — July 6, 2009

  4. 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..

    by robin — July 30, 2009

  5. 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

    by Ed Smith — August 8, 2009

  6. Sorry no increase this year they spent all our tax money on stimulus and cash for clunkers.

    by Don — August 22, 2009

  7. 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.

    by Laurie Randall — August 23, 2009

  8. 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.

    by Mattie — August 24, 2009

  9. 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

    by barbara — September 2, 2009

  10. 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!!!

    by Lisa — October 2, 2009

  11. […] 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 […]

    by » No 2010 COLA Increase in Social Security - Is “Stimulus” Payment an End Run on the System Topretirements — October 16, 2009

  12. How unfair and blatant this news are. I worked all my life and became disabled at the age of 34 yrs old. At this time and age we are presently living it is a miracle we are still breathing. Society with all their added presures to its human race have increased the number of disable individuals unable to work today.

    DO YOU BLAME US? Now the government pretends as if is ok not to give us what is deserved every year. When I devoted 20 yrs of my life working I recd a raise every single year and that was to be expected. My SSD is based on wage earned compensation money. It is not as if the government is handing me charity pennies.

    DISSAPOINTED CITIZEN

    by Eroilda — December 15, 2009

  13. There are some of us to have this increase, knowing that most do not, but is baby boomers who depend on the increase to live and survive in the economic
    spinout or whatever we should be able to stay on it for the longest time.
    even elderly people need this increase in our SSI and other checks.
    Why O’Bama sits back and gets a peace award yet pulls the the economic rug
    out from us beneficiaries who get income from family or work members.

    by Ted Ochsenhirt — December 16, 2009

  14. I have to agree with Laurie Randall. We need to be grateful that we that are disabled have a gov. that throws us a bone all year when we didnt really do anything to deserve it. I was robbed and shot in Dallas Texas in 2003 by a crackhead and permantly disabled from the bullet. Then, all the sudden, I get news that there is a service that wiil pay me so I can survive all year. That sevice is S.S.I. So if your greedy and all you care about is your fricken increase, all I can say is (move to the chek republic) and get notta!!

    by Kevin Barrix — January 5, 2010

  15. federal workers got a raise but not the seniors

    by harry — February 28, 2010

  16. reply to laurie randall
    be grateful you say for what it is my money to start with that the goverment took out of my wages all my life so where the he- – is it when i need it ? if they wouldnt of been takeing a big chunk of my check every payday all my life maybe i would have money now ….who in washington has their grubby fingers in the ssi money anyways the goverment should pay every penny back to us after all if we took your money(goverment) we would have to pay it
    back with interest i might add.. just think about all the people that are deacesed and never got to draw on their benefits wheres all that money and the lotteries that are supposed to benefit the seniors something is mighty fishy here ..

    by tricia — March 5, 2010

  17. 🙄 by the way another thought if obamas health plan goes into effect
    and they take medicare and medicaid away is the goverment going to give all the money back they have been takeing out of my checks all these years for medicare ?
    im not a rich person i need my money i cant afford to give it away i dont make $400,000 a year……

    by rosie — March 5, 2010

  18. why do we have to suffer because of inflation why cant the goverment make it up somewhere else why always the little guy personally im sick of it why not get it from the rich for a change it wont hurt them the seniors well they will probly have to go a week without eating i know i will
    250.00 isnt going to help at all maybe for the moment 😥 what about next month

    by rosie — March 6, 2010

  19. KEVIN BARRIX– PLEASE DONT SPEAK FOR THE PEOPLE ON SSDI , THOSE PEOPLE ARE GETTING SSDI CHECKS , THAT IS THERE OWN MONIES , I CONTRIBUTED OVER 30 YEARS INTO THE SYSTEM AND I LOSE $6000.00 RE; NO COST IF LIVING INCREASE FOR TWO YEARS . YOU COULD NEVER KNOW THIS , YOU ARE ON SSI , WHICH MEANS YOU CONTRIBUTED VERY – VERY LITTLE , OR NOTHING INTO THE SYSTEM . YOU ARE LIVING OFF THE TAX PAYERS LIKE ME , SO WHEN YOU SPEAK , KNOW WHAT YOU ARE SAYING BEFORE U SPEAK . I AM ONE OF THOSE CONTRIBUTERS WHO REALIZE HOW POWERFUL THE COMPOUNDED INTEREST FORMULA WORKS . THIS GOV, IS NOT GIVING ME ANYTHING , THIS IS MY HARD EARNED MONIES . THIS IS WHY IT IS ILLEGAL TO HOLD BACK MY MONIES RE; COST OF LIVING . THIS IS MY MONEY NOT THE GOV.

    by MIKE YOV — March 10, 2010

  20. IM NOT ON SSI OR SSDI I DONT EVEN KNOW WHAT THAT IS MY MISTAKE 🙁 JUST SOCIAL SECURITY AND I HAVE PAID IN ALLOT EVERY CHECK I EVER MADE …also paID into medicaid AND MEDICARE and i know what im talking about

    by tricia — March 11, 2010

  21. oops i guess you wernt talking to me ….i agree with you mike

    by tricia — March 12, 2010

  22. I would prefer than no one pay into SS and no one get SS — we need to get off the “entitlement” mentality or we will be bankrupt as a nation. Some would say we already are. Those of us in the workforce now stand little chance of ever getting our SS “investment” back, so its just another tax. Please take time to understand the economics of government transfer payments and entitlement programs and realize they aren’t sustainable. If we keep raising taxes on those who make “more”, two things are bound to happen — investment in our country’s economic will cease, impacting everyone, and since the government cannot control itself when it comes to tax and spend, the tax rates will rise significantly for EVERYONE, not just the rich folks you all enjoy demonizing. The only sustainable approach is for each an every person who is capable to pull his or her own weight — relying on our corrupt government (whether it be Dems or Reps in power) is a losing proposition — we should all run for our lives if they seize any more power than they have today.

    by bboswrth — March 12, 2010

  23. well before people can get off the entitlementality the goverment needs to quit takeing my money why should the goverment go bankrupt when it is our money they are paying back i dont agree with your LOGIC ….the goverment shouldnt be spending the SOCIAL SECURITY MONEY IT ISNT THEIRS IT IS THE PEOPLES and the people deserve it be paid back to them thats what it was deducted from our checks for all those years…

    by rosie — March 15, 2010

  24. :lol:I agree with you rosie it should be paid back with interest
    after all thats what they do to us if we owe them money .they have no right spending the social security money then tell us no raise fund almost broke. maybe if they stop sending billions to third worlds we could take care of own.and also stop buying thousands dollar shower curtains and spending like money grows on trees .

    by tricia — March 20, 2010

  25. My problem with the entire social security act is , the house votes on a 2% raise for our retired , and the house votes for their raises , and they get way more then 2%. THIS NEEDS TO BE STOPPED AND HAVE THE PEOPLE VOTE ON PAY RAISES FOR WASHINGTON

    by David — September 26, 2010

  26. i’m a 50 yea old male who has died twice from respertory failure .i was liveing ok till my illness took me out of work i use to bring home 700.00 to 900.00 a week now i get 633.00 and i work all my life starting at age of 14 i can no longer bay my bills on time and there are no moneys left to even go to a movie so here i set in my house waiting for another failure so then it will be up to my son who is 16 and in school to pay the bills or lose what we have get rid of the all these people from outher country’s and give more money to the people of this country MAD AS HELL IN NEW YORK AND STARVING

    by Eugene — October 7, 2010

  27. to the above thats 633.00 a month not a week i don’t know how i can live like this

    by gene — October 7, 2010

  28. I hardly think it was the Obama vacation that caused the lack of increase.It was announced long before that.

    by Ella — October 19, 2010

  29. I say then if Obmama and his party are so hell bent on making us live on such a low income..maybe then they should only be allowed to live on the same..I bet then they would give a rise and more. Matter of fact I dare them to try that..then come back and say it’s a good thing.

    by Michael — October 26, 2010

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