2010 Social Security Cost of Living Adjustment

[W. Gray]

The latest monthly figure making up the Social Security cost of living adjustment was announced by the Labor Department on the 16th.

The latest figure computes to a minus 1.5% for December 2008. Along with the announced decreases for October and November, the cumulative cost of living adjustment for Social Security, effective December 1 of this year stands at a minus 3.4%.

I do not believe there has ever been a decrease in the Social Security cost of living adjustment over the one year computation period, so I do not know how a decrease would be handled. And, I do not know what the law says.

I would think, however, that if this trend stays on track, there would not be a decrease for 2010, but rather no change in payments at all.

[Diane Amberg]

I think it will stay the same next year, but 2010 is very far away in this economic climate.

[W. Gray]

This month marks the first time this computation year that the CPI-W index used to compute the cost of living adjustment for Social Security recipients has shown an increase.

The increase in the computation was a plus .4. However, the cumulative for this year is still at a minus 4.1% meaning there will have to be some really large increases in living costs, before the traditional October 15 announcement, to push the adjustment up over zero.

A few weeks ago, someone in the government predicted there would not be a Social Security increase for two to three years.

[Wilma]

I happily accepted the larger than usual increase in social security for this year.  Why should I bitch about having to take a decrease if it happens?  Wouldn't that just be fair?

[Varmit]

I'll tell you whats not fair, is that by the time my generation gets old enough to collect Social Security, there won't be any.

[greatguns]

On the other side of the coin, something could happen to me tomorrow and I might need to draw social security disablilty.  So you do not have to be old. 

[Catwoman]

I'll tell you whats not fair, is that by the time my generation gets old enough to collect Social Security, there won't be any.

You are so right! 

[Varmit]

Please, correct me if I am wrong on this (yea, like I had to say that) but when the program was started, what you paid in is what you got.  I've heard that it now takes 4 people paying in to support one recipient.  If that is the case, then I say shut it down because it is nothing more than redistrubition of wealth.  If that is not the case, than I shall rest mine.

[Diane Amberg]

It was based on your contribution, but SSA and other parts were also there. Remember, life expectancy was much lower then.

[Wilma]

It is still based on your contribution or the contribution of the person whose account you are drawing from.  I don't understand everything about SS but the more you pay in the more your monthly check will be up to a point.  There is a maximum that you are required to pay in and you can't pay anymore than that.  Unfortunately, the maximum is so high now that few ordinary workers reach it.  My husband reached it for several years when he was working a lot of overtime, thus, my check, which comes from his account is higher than most.  My mother-in-law, whose husband did not pay in much, had a much lower check than I am getting.  My mother had a lower check than mine.  But both these ladies had money left over at the end of the month.  I am just now managing to make it through the month.  It isn't how much you have, but what you do with it.