Friday, October 10, 2008
Senior citizens hold their breath as Bu$hco promises more Social Security Benefits
Social Security Benefits To Go Up By Larger-than-Usual Amount
October 8, 2008 Wednesday 8:22 PM EST
Robert Powell has been a journalist covering personal finance issues for more than 20 years, writing and editing for publications such as The Wall Street Journal, the Financial Times, and Mutual Fund Market News.
BOSTON (MarketWatch) -- Amidst all the volatility and uncertainty in the financial markets these days, one thing is definite: Come October 16, Uncle Sam will announce the cost-of-living adjustment for 34 million Americans who now receive Social Security benefits.
Unlike in years past, however, that adjustment is expected to be among the largest increases in 25 years.
No one yet knows exactly how big the automatic benefit hike will be. But experts are predicting that Social Security beneficiaries will see their monthly benefit rise by at least 5%, perhaps more. In calculating the COLA, Social Security will look at inflation over the 12 months ended September 2008. For the year ended August 2008, inflation as measured by the consumer price index (CPI-W) was running at 5.4%.
That means the average monthly benefit could rise to about $1,137 from $1,079 now, a $58 increase.
What's more, unlike in years past, that increase won't be eaten up entirely by increases in Medicare Part B and Part D premiums, though it will be close. For about 95% of Medicare recipients, Part B premiums will remain at $96.40 in 2009, the Centers for Medicare and Medicaid Services said last month.
Well, I haven't heard good news like this for a long time,except for the fact that McPain is way behind in the polls. If Bu$hco and John McSame get their way there will be an attempt to put some of the social security payments into the stock market so I'll be keeping my ear to the ground untill election day...G: