2009 Social Security Cost of Living Adjustment

[W. Gray]

The Social Security cost of living adjustment for 2009 is to be announced this week.

The increase is effective Dec 1 and is based on the Consumer Price Index for urban wage earners and clerical workers. As goes the increases/decreases in their expenses, so goes the Social Security COLA.

My calculations have the expected adjustment up through last month to be 5.9 percent.

It looks like the adjustment would have to be more than 6 per cent, however, I am not sure how much effect the falling gas prices will have with increasing the 5.9 percent or decreasing it.

[sixdogsmom]

It seems to me as though most things have increased far more than 5.9%; many things at the grocery store have increased 100 fold and sometimes more. Insurance rates have increased dramatically. 5.9% is almost double that of last year though.

[flo]

no big deal.  If they raise the "cost of living" 5.9%, they'll increase the "cost of medicare" 4.9%.

[dnalexander]

The next COLA for Social Security will be announced on October 16, 2008.

http://www.socialsecurity.gov/OACT/COLA/colasummary.html

[kate31701]

It seems to me as though most things have increased far more than 5.9%; many things at the grocery store have increased 100 fold and sometimes more. Insurance rates have increased dramatically. 5.9% is almost double that of last year though.

Name one thing that has gone up 100 Fold.

[dnalexander]

I think I heard on the news the expected COLA is 6% and NO raise in medicare.

[W. Gray]

That's right. Medicare has already announced there will be no increase in 2009 to the 96.40 deduction for Part B.

Some out of pocket costs are expected to go up though.

[sixdogsmom]

The Medicare freeze is like a raise in itself. Sorry if there was confusion about the term 100 fold; I actually meant 100%.

[W. Gray]

Actually, the $96.40 is the lowest premium.

The Part B premium increases in substantial increments and goes all the way to $308.30 each month if someone has income greater than $426,000.

[W. Gray]

The CPI-W fell .1 percent during this past month.

The announced Social Security COLA is 5.8 percent.