No raise for 65 million on Social Security
(CNN Money) For the first time in five years, there will be no annual raise in their Social Security benefits in 2016.
The reason? A decline in inflation caused by falling gas prices…
The problem for seniors is that the way the government measures inflation simply doesn't reflect how people on Social Security spend.
Seniors don't benefit as much from lower gas prices as the average American worker because most are no longer driving to and from work. Medical costs have also increased faster than overall inflation, and a greater percentage of seniors' spending is on health care.
A study by the Senior Citizens League found that Social Security benefits have lost about 22% of their buying power since 2000, despite the benefit increases due to the COLA.
See below for my comment:
Which prices have gone down? Not any that affect me.
Meat is twice what the price was last year. Other groceries are up, too, despite having lower transportation costs.
Our medigap insurance had a 5% mid-year increase, and there may be another increase for next year.
We don't yet know how much Medicare Part B will go up, but they're saying that there will be an increase.
Cook County has increased the valuation of our condo by 22%, which will mean a gigantic increase in property taxes.
Our condo association fees are about to increase by 3.5%.
And those are only the things that pop right to mind.
With interest rates as low as they are and remain, we are in a serious bind. They told us all our lives that we should save our money for retirement, and now that we’re here, that money isn’t earning anything.
It’s outrage time. Help fight this decision: http://www.socialsecurityworks.org/