Social Security Benefits Will Get Small Cost of Living Bump

[rockin'robin]

NEW YORK -- Social Security recipients will get less than a 2% increase in their benefits next year to account for a rise in cost of living, according to an estimate published Tuesday. That's less than half the increase in benefits they received in 2012.

The American Institute for Economic Research, a private think tank, estimates Social Security checks will increase between 1.5% and 1.7% in 2013.

The Labor Department will release its September inflation reading on Oct. 16, which is the final of 12 readings used to calculate the cost of living adjustment made annually to benefits. The Social Security Administration will announce the 2013 benefit increase at that time. Benefits increased by 3.6% in 2012, when inflation was higher.

Steven Cunningham, director of research and education for AIER, said that the increase will not be enough to cover the actual rise in costs faced by many seniors, who receive the overwhelming majority of Social Security benefits.

Seniors don't typically have the same spending patterns as younger workers, whose purchases are more closely tracked by the government's inflation reading.

Cunningham pointed to larger increases in items more important to senior's spending, including food and beverages, which increased 2%; motor fuel, which rose 1.9%; and medical care, which jumped 4.1%. The AIER's estimate of the cost of every day items purchased by seniors showed a 2% increase over the last year.

"They're falling behind by about a half percentage point a year or so. It's not a huge amount, but over time that adds up," said Cunningham.

In 2009, benefits increased by 5.8% following a sharp rise in gas prices in 2008. But social security recipients saw no increase in 2010 and 2011, when spending dropped due to the recession and prices remained low.

This calculation doesn't only affect those receiving Social Security benefits. It is also used to raise the ceiling on wages subject to payroll taxes. This year's maximum is $110,100, but a 1.7% increase would subject an additional $1,872 to the 6.2% tax.

Social Security Benefits Will Get Small Cost of Living Bump - Yahoo! Finance

 

[Lau2046]

I wouldn't get excited over this - federal employees supposedly get a "cost of living" increase which covers nothing. It comes out to about $5.00 extra in your paycheck. Years ago, you could get your car filled half way for that amount but not anymore...now you can't even buy a pack of cigarettes for $5.00.....

Laura

 

[Foxrac]

I wouldn't get excited over this - federal employees supposedly get a "cost of living" increase which covers nothing. It comes out to about $5.00 extra in your paycheck. Years ago, you could get your car filled half way for that amount but not anymore...now you can't even buy a pack of cigarettes for $5.00.....

Laura

It was congress that approved to give no pay or small pay increase for federal employees, however you make more money than SSDI recepients.

 

[Lau2046]

It was congress that approved to give no pay or small pay increase for federal employees, however you make more money than SSDI recepients.

$24.43 increase - for gas and it cost $100 a week to keep my car filled? Yes I'm doing a banging job. Don't expect to me to feel bad for the many people on SSDI who are able to work and choose not to so I have to pay for them to stay home and watch TV. My sympathies are with those that can't work and have to rely on SSI. Unfortunately, those abusing the system far out number those in legitimate need.

Laura

 

[CrazyPaul]

$24.43 increase - for gas and it cost $100 a week to keep my car filled? Yes I'm doing a banging job. Don't expect to me to feel bad for the many people on SSDI who are able to work and choose not to so I have to pay for them to stay home and watch TV. My sympathies are with those that can't work and have to rely on SSI. Unfortunately, those abusing the system far out number those in legitimate need.

Laura

If you're talking about deaf people who are on SSI/SSDI, Congress put deafness on the official disability list so that's the law. For example, a restaurant has an available job to offer such as a waiter/waitress, a deaf person who applies for it will NOT be hired. WHY?

 

[diehardbiker]

Are you saying that waiter/waitress is the only job available anywhere? Maybe you should think before blurt out like this. This is the lamest excuse I have heard of for a while.

If you're talking about deaf people who are on SSI/SSDI, Congress put deafness on the official disability list so that's the law. For example, a restaurant has an available job to offer such as a waiter/waitress, a deaf person who applies for it will NOT be hired. WHY?

 

[CrazyPaul]

Are you saying that waiter/waitress is the only job available anywhere? Maybe you should think before blurt out like this. This is the lamest excuse I have heard of for a while.

It's 100% possible that alot of deaf people live in very small towns and suppose that there might be one or two opening jobs only at a restaurant in their town and waiters /waitresses are needed. Can those people apply for it? Yes, but they will not be hired because they are deaf so that's one reason why deaf people get SSI/SSDI. You can't expect them to move to another place where they have to find a job. Congress knows that it's the right thing to do (supporting deaf people and other handicapped people) regardless of taxpayers' complaints.

 

[Frisky Feline]

plenty of stocks, clerical, handyman, electric work, computer and go on. indeed, they have to go to school.

 

[diehardbiker]

100% possible? Get real! Its like well that small town only has job available and it is waiter/waitress, that is how you look at it? LOL No, there are OTHER kinds of jobs available even in small town. No restaurant can run without cook, dishwasher, busboy, and so on. So, don't limit yourself to just specific position.

It's 100% possible that alot of deaf people live in very small towns and suppose that there might be one or two opening jobs only at a restaurant in their town and waiters /waitresses are needed. Can those people apply for it? Yes, but they will not be hired because they are deaf so that's one reason why deaf people get SSI/SSDI. You can't expect them to move to another place where they have to find a job. Congress knows that it's the right thing to do (supporting deaf people and other handicapped people) regardless of taxpayers' complaints.

 

[Foxrac]

If you're talking about deaf people who are on SSI/SSDI, Congress put deafness on the official disability list so that's the law. For example, a restaurant has an available job to offer such as a waiter/waitress, a deaf person who applies for it will NOT be hired. WHY?

It's 100% possible that alot of deaf people live in very small towns and suppose that there might be one or two opening jobs only at a restaurant in their town and waiters /waitresses are needed. Can those people apply for it? Yes, but they will not be hired because they are deaf so that's one reason why deaf people get SSI/SSDI. You can't expect them to move to another place where they have to find a job. Congress knows that it's the right thing to do (supporting deaf people and other handicapped people) regardless of taxpayers' complaints.

Back in 2006, when I got out of high school so it took 7 months for me to find an employment with over 100 job applications and very few job interview, so it was extremely challenge to find an employment if you are disabled so my VR convinced Walmart very hard to hire me after turned away due to unfit person to work and they refused to mention deafness as issue.

Now, for current job market, it is a lot worse now because of economy condition, but it was great in 2006.

 

[Foxrac]

$24.43 increase - for gas and it cost $100 a week to keep my car filled? Yes I'm doing a banging job. Don't expect to me to feel bad for the many people on SSDI who are able to work and choose not to so I have to pay for them to stay home and watch TV. My sympathies are with those that can't work and have to rely on SSI. Unfortunately, those abusing the system far out number those in legitimate need.

Laura

If you are not happy with pay raise so go find other job or go back to school.

The situation with disabilities are confidential, unless they tell you. Not all SSDI cases are deafness and they have different disabilities that unable or extremely limited to work, including serious or chronic illness. There are many deaf people receive SSI, that's very common and they usually qualify for SSI after they hit 18th birthday, so it doesn't have strict requirement as SSDI does because SSDI requires strict medical review and you will be easily denied without assistance from lawyers, but for SSI, you will approved after you have doctor note that state about unable to work because of various reasons, including deafness.

 

[rockin'robin]

Agreeing with Foxrrac somewhat....can't judge the book by the cover!...Some people on SSDI, who are not even deaf, have no "visible" illness/diseases", still are highly qualified for SSDI.....My brother-in-law is an example...and he worked for many, many years.....

As for SSI...I've seen many cases where it's abused very much!....One deafie even gets "Botox" shots for her face with her SSI check. Lives with several people, food stamps...all the bells and whistles you can think of....and the only thing wrong with her is that "she's deaf"....She can work, just doesn't want to....oh well! not my problem ??

 

[Foxrac]

Agreeing with Foxrrac somewhat....can't judge the book by the cover!...Some people on SSDI, who are not even deaf, have no "visible" illness/diseases", still are highly qualified for SSDI.....My brother-in-law is an example...and he worked for many, many years.....

As for SSI...I've seen many cases where it's abused very much!....One deafie even gets "Botox" shots for her face with her SSI check. Lives with several people, food stamps...all the bells and whistles you can think of....and the only thing wrong with her is that "she's deaf"....She can work, just doesn't want to....oh well! not my problem ??

Yup, I believe that SSDI is based on case to case basis, so not surprised about some healthily, non-disabled adults qualify for SSDI since disabled/illness adults got denied without seeking the lawyer.

There are really a lot of drug abusers live on SSI and I noticed a lot on real documentaries on TV, especially guy who is pothead and live in Modesto, so he receives SSI and booked to jail so often.

 

[CrazyPaul]

100% possible? Get real! Its like well that small town only has job available and it is waiter/waitress, that is how you look at it? LOL No, there are OTHER kinds of jobs available even in small town. No restaurant can run without cook, dishwasher, busboy, and so on. So, don't limit yourself to just specific position.

Sure, a deaf person can work as a cook, dishwasher, busboy, etc but what if they are already filled and a waiter position is still available? Another example, some places need secretaries, salespersons, cashiers, any other positions that require verbal communication. So my point is that deafness is one of the official disabilities, therefore deaf people have rights to receive SSI/SSDI by law. People who complain about those recipients need to shut up. If I get fired or laid off and can't find another job that doesn't require verbal communication, I will apply for SSDI because the law says that I have rights to do so.

 

[diehardbiker]

Sad that you have a tweenty tiny tunnel vision. "Rights to get SSDI" my ass! The law CAN and WILL change so don't depend on it.

With 15 Trillion dollars debts along with Social security already pay out more than they collect. This is a time bomb, do you expect SSDI to be there when you need?

We have no idea what will happen on this coming January 2013. If government fails to act by January 2nd, there will be automatic budget cuts and jack up tax rates. The problem with issues like that is that if serious tax rate had shot up, trust me more lay offs will come in which in turn will trigger even more spending cuts which could ultimate result more lay offs to the point where we are going to go back to 1929 or even worse.

That is what Fiscal cliff is all about. For over 40 years almost all government branches kept borrowing Social Security funds and they are starting to running out of options. Thanks to Richard Nixon for the idea of borrowing SS monies to solve the budget woes back in 70's.

Sure, a deaf person can work as a cook, dishwasher, busboy, etc but what if they are already filled and a waiter position is still available? Another example, some places need secretaries, salespersons, cashiers, any other positions that require verbal communication. So my point is that deafness is one of the official disabilities, therefore deaf people have rights to receive SSI/SSDI by law. People who complain about those recipients need to shut up. If I get fired or laid off and can't find another job that doesn't require verbal communication, I will apply for SSDI because the law says that I have rights to do so.

 

[CrazyPaul]

Sad that you have a tweenty tiny tunnel vision. "Rights to get SSDI" my ass! The law CAN and WILL change so don't depend on it.

With 15 Trillion dollars debts along with Social security already pay out more than they collect. This is a time bomb, do you expect SSDI to be there when you need?

We have no idea what will happen on this coming January 2013. If government fails to act by January 2nd, there will be automatic budget cuts and jack up tax rates. The problem with issues like that is that if serious tax rate had shot up, trust me more lay offs will come in which in turn will trigger even more spending cuts which could ultimate result more lay offs to the point where we are going to go back to 1929 or even worse.

That is what Fiscal cliff is all about. For over 40 years almost all government branches kept borrowing Social Security funds and they are starting to running out of options. Thanks to Richard Nixon for the idea of borrowing SS monies to solve the budget woes back in 70's.

Wow! You don't know shit about SSDI which stands for Social Security Disability Insurance that are only available to people including me who pay SS taxes for more than 10 years. Therefore I am insured so I have rights to receive benefits when I am disabled. SSA.gov says SO. Some or all states also offer disability insurance (SDI-short/long term) to state employees who pay for it. That's called INSURANCE. So how can those recipients take advantage of their benefits that they paid for in the past? That's their rights. Read more at SSA.GOV.

 

[diehardbiker]

Wow! you got too much faith and trust in Social Security, have you heard of news lately or your too busy not doing research?

Law CAN and will change over the course regardless.

http://abcnews.go.com/blogs/politic...-medicare-could-run-out-sooner-than-expected/

http://www.dailyfinance.com/2012/04/24/more-bad-news-for-social-security-and-medicare/

http://www.washingtonpost.com/polit...cash-by-2016/2012/05/30/gJQA3AfH1U_story.html

I could get more links for you but you know how to google so google up!

Unless major economy changes for positive then we are pretty much screw up.

China isn't doing well right now, what does that tell you?

Wow! You don't know shit about SSDI which stands for Social Security Disability Insurance that are only available to people including me who pay SS taxes for more than 10 years. Therefore I am insured so I have rights to receive benefits when I am disabled. SSA.gov says SO. Some or all states also offer disability insurance (SDI-short/long term) to state employees who pay for it. That's called INSURANCE. So how can those recipients take advantage of their benefits that they paid for in the past? That's their rights. Read more at SSA.GOV.

 

[CrazyPaul]

Wow! you got too much faith and trust in Social Security, have you heard of news lately or your too busy not doing research?

Law CAN and will change over the course regardless.

Didn't you read my previous post? Laws can't change my disability insurance.

 

[diehardbiker]

New word for you

"REPEAL"

Repeal means reversal of law. Has it happen in history? You can bet your ass it had happened. Many laws were repealed in the past, congress has the power to repeal any laws even SS laws too. Supreme court can cause law to be repealed when they find law unconstitutional.

Didn't you read my previous post? Laws can't change my disability insurance.

 

[diehardbiker]

Hey CrazyPaul, I never have the intention to outsmart you. I'm just point the fact, and I would NOT recommend depend on Uncle Sam exclusively. Right now, in political atmosphere is pretty much HOSTILE. They are now very polarized, what that means is that anything can trigger major changes. On Congress floor no one agrees to the resolutions as of yet and it is very scary scenario.

15 Trillion dollars debt, and no improvement in economy, something is terrible wrong is going to happen and we do not know. I hope I am entirely wrong but it is scary.

One possible scenario is hyperinflation, that is going to happen if government don't keep the budget in balanced, and print more money than government has. Once Hyperinflation hits, SSDI will not be able to help you, sorry here is 800 dollars for a month, and I understand that rent had shot up 5,000 dollars a month, Milk now cost 100 dollars a gallon, and so on... nothing we can do. Can it happen? Yes, in history there is events of hyperinflation where one country (Actually more than one) decided to print more money trying to fix the budget causing inflation over 1,000% or more.