Sunday, October 18, 2009

Do seniors deserve higher Social Security benefits?

Peter Grier of the Christian Science Monitor weighs in.

US seniors will be able to buy more with their Social Security checks this year, even though they won't be getting extra cash via a cost of living adjustment (COLA), according to some analysts.

That is because the price of goods and services in America has fallen significantly since the period on which the last Social Security benefit increase was based. In addition, for most Social Security recipients, Medicare Part B premiums – which are deducted from their government checks – will be frozen.

The bottom line? The purchasing power of a typical retiree will jump by about $725 next year, according to Andrew Biggs, a former deputy commissioner of Social Security.

That calls into question the necessity of Congress voting seniors a one-time $250 payment, as President Obama has proposed, writes Mr. Biggs, now a scholar at the American Enterprise Institute, in a new analysis.

"An ad hoc COLA payment is unnecessary and could lead to larger costs down the road," writes Biggs.

Check out the whole article.


JakeB said...

Taking money away from seniors is not the answer. End Social Security taxes now. But pay the people back who've paid into it. With a COLA.
We won't be around much longer anyway.

Rob Paris said...

The Social Security cost of living adjustment is messed up!