Social Security benefits going up by 5.8 percent

[bemildred]

Source: AP

WASHINGTON - Social Security benefits for 50 million people will be go up 5.8 percent next year, the largest increase in more than a quarter century.

The increase, which will start in January, was announced Thursday by the Social Security Administration. It will mean an additional $63 per month for the average retiree.

The increase is the largest since a 7.4 percent jump in 1982 and is more than double the 2.3 percent rise that retirees got in their monthly checks starting in January of this year.

The typical retiree's monthly check will go from $1,090 currently to $1,153.

Read more: http://news.yahoo.com/s/ap/20081016/ap_on_bi_ge/social_security

[Delphinus]

1. Yeah!

It's certainly time. I feel for those on SS, trying to make it in this economy.

Now, if only I could get a part-time job to supplement no raise in three years for myself. :( That might let me also pay for health insurance.

[Eurobabe]

2. At least some piece of small good news for my mom

meanwhile, her 401K is in the toilet.

[watercolors]

3. Good news for my mom also

My broyher and I are helping her financially now!

[CountAllVotes]

22. now you know why Social Security is so important

in the days of my great grandparents, there wasn't something called "Social Security" hence they had to rely upon their children (if they had any) to support them. Many families ended up living together until the parents passed away.

This caused a lot of problems needless to say and a lot of ill feelings between the siblings. :(

:kick:

[sandyj999]

4. And the Medicare Part B premium will go up also. It always does. n/t

[napi21]

7. Yes I know. In past years the increase in medicare came close to canceling

any COLA increase in your check. I think last year each recipient received a net increase of $2.00 a month!

[Freddie Stubbs]

11. No, it will not go up next year

[sandyj999]

20. Thanks, I just heard that also. I think that's a first! n/t

[El Supremo]

5. But what is the cut for Medicare Part B?

Too bad my mother died this year. She could have used it the past 6 years for her nursing home costs.

[FlaGranny]

8. The article says there will be NO

increase in Medicare premiums this time.

[CountAllVotes]

21. the upper 5% will pay a lot more

but you are right, the rest of those on Medicare will be paying the same amount (unless they are making over $85,000.00 a year (single) - their premiums will go up).

More here: https://questions.medicare.gov/cgi-bin/medicare.cfg/php/enduser/std_adp.php?p_faqid=2099&p_sid=OwRlzzgj&p_lva=2100


:kick:

[meow2u3]

30. At least the premium is progressive

Rather than an across-the-board increase. It's about time rich retirees start paying more because they won't feel the pinch so much. Rich old guys like McFart can afford a couple hundred bucks more a month; he won't have to sell one of his houses to pay his Medicare premium.

[L0oniX]

6. Good news for the retired community and John McCain who also collects SS.

To bad there won't be any SS money for me when I retire in 9 years even though I have been paying it to it all these years. What a huge pyramid rip off scheme it is.

[2Design]

10. don't watch fox news so much - it is bs - they had billions to fund

an illegal war and bail out their friends in banks and wall street - they surely can dig up more if they had too - we can take their pensions and benefits

[Cleita]

18. / n/t

[Cleita]

17. If McCain and his minions get into the White House that might be true,

however, if we get a Democratic President and Democratic majority government, you will be seeing your SS check and Medicare as promised.

[Lugnut]

9. It's about time.

After being saddled for the 2008 with a paltry 2.3% this is like a windfall. It will be interesting to see how much of it will be lost to a Medicare premium increase.

[DJ13]

12. Even that 5.8% is far below the real inflation

It probably should have been over 8%.

[kath]

14. Exactly - inflation way more than 5.8%.

In terms of daily/weekly necessities, such as food and gasoline, which would be the largest part of a senior's expenditures, many times more than 5.8.
Food is up at least 20%. Some items that I buy regulary are up 50% or more. Inexpensive cheese (Craft cheddar, which we buy a lot) has DOUBLED in price.

[alfredo]

13. This is good. I can get a new water heater now.

[WePurrsevere]

15. WooHoo! and they're not increasing Medicare premiums next year either.

For those of us who are disabled and unable to work a regular job to supplement our incomes this is great news.

Although it's not really enough to cover inflation and make up for the lack in the past, it's better then the kick in the teeth we've been getting for so many years when all to often our increase was nil or almost nil thanks to the increases in Medicare.

I wonder if we can talk a Dem led congress, senate and White house into including needed dental and electric scooters even for those who only need them outside the house normally... ::sigh:: now that would be wonderful. :)

[Doctor_J]

16. Last gasp of Smirk trying to get McSame elected

the equivalent of Chicago precinct workers handing out $10 bills to get people to vote. For the last 8 years they've been trying to sink SS, now they're giving everyone a raise?

Congrats to SS recipients - you need the money badly. But methinks their motives are impure.

[Cleita]

19. That will be a help.

Maybe next year I can actually afford my prescription meds.

[wishlist]

23. Would have been well over 6% if gas/oil prices hadn't dropped

This raise is based strictly on the past year's CPI W index reflecting the drop in energy costs in August and Sept.

No one (except high level execs, corporate raiders and crooks) is currently keeping up with inflation though, whether you have stocks, bonds, CD's or commodities or just rely on wages or a pension.

[Rancid Crabtree]

24. Is it true that certain income brakcets pay no SS tax? n/t

[bemildred]

25. No.

FICA starts on the first dollar you earn.

[Rancid Crabtree]

27. 12.4 % up to $102,000...0-4% over that dollar amount?

Don't know for sure what current tax policy is on SS, but there is one site that compares the two candidates plans...and it sounds like the rate up to $102,000 is 12.4...but those making more than that are either taxed at a low of 4%...and thought Obama's website doesn't say it, this other suggested that the rate would be 0% for those between 102 and 250,000, and Obama-Biden want the 4% for those over 250,000 to go up about 4%...can't understand the 0% for those middle income earners in the 102-250,000 dollar range...nor do I understand why the current policy on incomes in the top range are at 4%...

[bemildred]

29. That is not "no taxes".

It's paid 50-50 by employer/employee. Self-employed get to pay it all themselves. More than one small business has been driven bankrupt by FICA tax. But nobody in Congress gives a shit about that.

I am all for removing the FICA tax cap and installing a FICA tax floor, and applying it to capital gains etc. too. I want to make it progressive while we are at it. That would not only shut them up about "fixing" social security but probably do a lot to improve the economy by forcing money back down towards the bottom, so it could then "perkle up". We could have a "perkle up" economy instead of a "trickle down" economy. Who but conservatives would piss on you ("trickle down") and pretend they are doing you a favor?

[Rancid Crabtree]

32. picking up pieces

...trying to learn...fwiw...I believe FICA is deducted up to a certain dollar amount...at least, that's what it sounds like on another thread...a poster said something along the lines of his/her check being larger late in the year when FICA is no longer deducted...so maybe the $102,000 dollar amount is it...you spoke about a tax cap...maybe that's what you meant, as well...maybe the 50-50 deal explains why the rate is 4% for some of the bigger dollar amounts?...there's plenty of businesses that are not driven bankrupt by FICA...still trying to figure out Obama's tax plan and I'm guessing that his plan would include what the other poster experiences, 0% after making 102,000, but then Obama wants to raise the 4% (everyone else pays 12.4%, I guess) for those in the +$250,000 bracket to something like 8%?...how will they be able to afford it?

[bemildred]

33. Learning is always good.

There is nothing more pitiful than someone making $250K who has no money.

[pam4water]

26. I thought under 7000 a year you did not pay FICA.

[Rancid Crabtree]

28. FICA is the one tax you can't avoid...

...at least when it comes to the dollar amount you mentioned...dollar figures I'm familiar with anyway...though the tax rate for those in the $250,000 dollar range is lower, at 4% I believe...Obama-Biden want to raise that rate about 4% more, I guess...probably make it harder for those wage earners to afford bread at Walmart...but hey, everyone has to tighten their belts...I did look at one site...taxfoundation.org...that suggested the proposed rate for those in the 102-250,000 dollar income bracket is 0%...a tax cut they can believe in...maybe they don't get SS during their Golden Years?...dunno...I'm not a member of the Paul Bowles Garden Club so I guess I get to make wooden shelves and sell them on the side of the road when I retire.

[Bryn]

31. I hope for 7.4 in 2010

Between 7 - 9 is realistic. Last year 2.3 was unreal!