Social Security Recipients – We Get a Raise in 2012!
We get a raise in 2012: Social Security is a monthly stipend that many seniors live on exclusively. While others are lucky to have other pensions or income, social security is still a large part of what pays the bills. At least 90% of Social Security recipients live exclusively on what Social Security pays.
Social Security always gave seniors a 'raise', a cost of living adjustment. It wasn't a huge number, but it was something. However, 2009 was the last year we had a cost of living adjustment. That means in 2010 and 2011 what Social Security paid was the same amount. Nothing extra was paid out even in these hard times.
But good news for Social Security recipients, we get a rise in 2012. The COLA is 3.6%. For a person getting $1,082 a month the increase would amount to $38 a month, or $455 a year. The official word is coming out today. We heard it would happen and anything in the plus column is good news. To figure out how much extra will be in your checking account just multiply the amount you currently receive by 3.6%.
If $38 dollars doesn't sound like a lot of money, remember that it is $38 more than you got in the last two years. According to Fox News, Mark Zandi, chief economist at Moody's Analytics, said "the COLA would give a boost to consumer spending next year, amounting to about $25 billion in government support, or 0.2 percent more economic growth, if beneficiaries spend it all. For comparison, last year's 2 percentage point cut in Social Security payroll taxes was worth $115 billion to U.S. households."
Social Security is a program that is hated and loved at the same time. Is it in trouble? How much longer will it be around? Will it be phased out? How will seniors who depend on Social Security money be able to live?
Perhaps a better option would be to improve Social Security. People run scams on everything and everybody. Social Security is no exception. If 95 year old dad dies and no one notifies Social Security his payments are still sent to him. Yes, it would be against the law to cash his checks, but it happens every day.
Social Security needs better checks and balances to weed out those who are abusing the system. Maybe if only the people who are supposed to collect were collecting it would be a different story. But at least in 2012 we get a raise!
Published by Abby Greenhill
Abby is a retired Administrative Assistant. She is a pet lover who has many years experience as a dog owner. She loves to take road trips anywhere up and down the East Coast and tries to stay current on ne... View profile
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19 Comments
Post a CommentHelps the budget dramatically:)
Good information! Thanks!
Whoopee! Now I can have that operation I need! It's a travesty that they decided not to give us a raise in 2010 and 2009, especially since all of our medical went up during that time. Any raise they're giving us now won't even cover that!
BDT!!!
You're being a smile-spreader with this one, Abby!
Finally!
Good article, Abby! Hope it will be around for the Baby-boomers when we are all eligible to apply!
Good news for some, although $38 isn't much
Nice piece of good news! (Love Rachel's comment!)
Where did the money come from to give this raise? They didn't have it in any investment program to make 3.9% interest, that's for sure. I'm hoping there will be even $38/month left for me by the time I'm old enough to get SS! Enjoy your raise and... don't spend it all in one place!