No Social Security Income Benefit Increase in 2010 – A First Since 1975
It seems like the golden age of prosperity for America is over, or at the very least, on hold, as the effects of the stock market crash and the resulting global recession continue to be felt throughout the country. Everywhere people are still losing their jobs and their homes, and budgets are getting tighter and tighter. This leads one to wonder about those who had been ‘living on the edge’ before the downturn; namely those living on Supplemental Security Income Disability benefits. How are they coping and will the government increase its assistance to them in the coming year?
The answer is a dismal number according to government information website www.socialsecurity.gov there will be no increase in Social Security Income Disability benefits for 2010. This, after a 5.8% increase in 2009. This increase, which has been given every year since 1975, is called COLA (Cost-of Living-Adjustment) and is calculated based on the Consumer Price Index, which estimates the average price of consumer products.
This provides the rationale for deciding against the increase for 2010 as, according to this index, consumer prices actually fell in 2009, as the country recorded negative inflation. One has to wonder at the manner in which the index is arrived at since, for most Americans and certainly for seniors depending on their Social Security Income, grocery bills have not gotten cheaper and certainly health care costs have skyrocketed. This therefore is indeed troubling news.
There is a silver lining however, for those who earn an income. Since there will be no increase in COLA there will also be no increase in the maximum amount of earnings on which Social Security tax can be charged, regardless of the fact that wages did increase in 2009. For the countless others who rely solely on the Supplemental Security Income benefits however, the days looming ahead seem to be dark ones indeed.
What recourse is there to be taken in light of this? Well, it does not seem as if there is much to be done. Disabled seniors will simply have to tighten their already tight budgets and plan wisely for the year ahead.