Seniors For Living

On October 15, 2010, the Social Security Administration announced that, for the second consecutive year, there would be no cost of living adjustment (COLA) in monthly Social Security and Supplemental Security Income (SSI) benefits, as there was no increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the third quarter of this last year

But, some such as AARP, argue that the COLA shouldn’t be based on the CPI-W, and that since inflation wasn’t zero in 2010, seniors have had paid more for essentials such as food and utilities:

Many Americans who rely on Social Security as their primary source of income continue to face financial hardship today. Over the past two years, older Americans have paid more for utilities and food, experienced a decline in housing values, tried to recover from deep retirement account losses, struggled with rising health and prescription drug costs, and faced longer periods of unemployment for those who need to work. AARP is asking Congress to provide relief to millions of older Americans in the post-election session.

President Obama supports a one-time $250 payment to Social Security recipients, similar to one included in his economic recovery package last year. A vote will be scheduled after the Nov. 2 election on that bill.

Find out more information on the 2011 Social Security changes.

-Elizabeth Thielke