Social Security COLA for 2009

From the Social Security Administration:

Monthly Social Security and Supplemental Security Income benefits for more than 55 million Americans will increase 5.8 percent in 2009, the Social Security Administration announced today. The 5.8 percent increase is the largest since 1982.

Social Security and Supplemental Security Income benefits increase automatically each year based on the rise in the Bureau of Labor Statistics' Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), from the third quarter of the prior year to the corresponding period of the current year. This year's increase in the CPI-W was 5.8 percent.

The 5.8 percent Cost-of-Living Adjustment (COLA) will begin with benefits that over 50 million Social Security beneficiaries receive in January 2009. Increased payments to more than 7 million Supplemental Security Income beneficiaries will begin on December 31.

Some other changes that take effect in January of each year are based on the increase in average wages. Based on that increase, the maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $106,800 from $102,000. Of the estimated 164 million workers who will pay Social Security taxes in 2009, about 11 million will pay higher taxes as a result of the increase in the taxable maximum.

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2009 COLA Announcement

Today's 2009 COLA Announcement Will Leave Millions of Seniors in Poverty

WASHINGTON,, Oct 16, 2008
5.8 Percent COLA Increase Is Being Touted as Largest Since 1982,
But Fails to Keep Up With Rising Costs

This morning, The Social Security Administration announced a 5.8 percent increase in Social Security checks next year, the largest such increase since 1982.
However, the announcement ignores the fact that the increase still badly trails inflation, will leave seniors with less buying power than they currently have, and will thrust more elderly Americans into poverty.
Although the COLA is intended to help seniors keep up with inflation, a recent study by The Senior Citizens League (TSCL) that analyzed 15 key expenditures found that people 65 and over have lost 51 percent of their buying power since 2000. Expenses such as home heating oil and gasoline have more than doubled since the beginning of the decade, while food staples such as eggs and potatoes have increased by 137 and 97 percent, respectively.
In addition, the average Medicare Part D prescription drug program will increase by 24 percent next year, and home heating oil this winter is forecast to increase by 23 percent from last year.
"Social Security is supposed to protect seniors in need - but with five million seniors below the poverty line, it's clear the system is failing them," said Shannon Benton, executive director of The Senior Citizens League. "Seniors know that even the relatively large increase isn't nearly enough to shield them from costs skyrocketing by double digits."
A majority of the 50 million Americans who receive a Social Security check depend on it for at least 50 percent of their total income, and one in three beneficiaries relies on it for 90 percent or more of their total income.

With 1.2 million members and supporters, The Senior Citizens League is one of the nation's largest nonpartisan seniors groups.
For Full Press Release, Visit http://www.SeniorsLeague.org.

DISCLAIMER: The information and opinions expressed on this blog are not an endorsement or recommendation for any medical treatment, product or course of action by One For The Aging. For medical, legal or other advice, please consult appropriate professionals of your choice.

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