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Social Security Benefits: Some Vital Details On Cost Of Living Adjustment 2011
For the second year in a row people who rely on Social Security wont receive a cost of living raise. This is only the 2nd time since the cost of living adjustment (COLA) was adopted that recipients haven't received an increase.
The reason Social Security benefits will not be adjusted in 2011 is that inflation has been very low. The whole premise behind the cost of living adjustment is that benefits are revised for inflation so recipients could keep up with rising prices. If there's no inflation, there is no need for cost of living increase. The newest inflation numbers published by the Labor Department indicates that prices are lesser than they were in 2009, the last time Social Security benefits were increased.
The COLA in 2009 was the biggest seen in 27 years at 5.8 percent. The increase in 2009 was so large due to gas prices that sky-rocketed in summer of 2008. When gas prices decreased, so did the in general inflation rate. While the government can't decrease Social Security benefits if there's deflation (when prices are dropping), they can decide to not provide a cost of living adjustment raise, which has been the situation for 2010 and looks to be the case for 2011.
Possible Bonus Payment to Help Seniors Who Depend on Social Security Benefits
To aid Seniors who depend on their Social Security benefits to help with living costs, Congress will be voting on a $250 extra payment for Social Security recipients to aid make up for the fact that Social Security benefits will remain unchanged for the second year in a row. An update will be provided when the bill has been voted on.
No Social Security COLA Means No Raise in Medicare B Premiums
One silver lining to no cost of living raise is that Medicare Part B premiums wont go up for existing enrollees. A little percentage of Medicare Part B participants will pay higher premiums, including people who've Medicare Part B but who're not yet collecting Social Security benefits, people who're considered "high income" and people who're just now enrolling in Part B. However, a "hold-harmless" provision protects existing participants from rate increases if their Social Security benefits don't increase, so no cost of living raise for Social Security recipients also means no Medicare Part B premium raise also.
Social Security Eligibility Criteria: Can A Full-Time Homemaker Get Social Security?
When Social Security was first established, most families only had one bread-earner, and only the working spouse qualified for retirement benefits. This caused financial difficulties for the spouse who didn't work (and therefore didn't qualify for Social Security) if the working spouse passed away first.
Social Security Income: Suggestions To Help You Maximize Your Social Security Retirement Income
As you get closer to retirement, choosing when to take your Social Security may seem like rolling the dice. There are so many decisions to make, such as:
The Best Way To Request For Social Security Benefits
Social Security was originally created to provide retirement benefits to workers, but the program has grown tremendously and now Social Security provides disability benefits, death benefits and other family benefits in addition to retirement benefits.
3 Ways A Financial Planner Could Help You Reach Your Own Financial Objectives
Many people wonder exactly what a financial planner does, and how they can help you. Here are just three ways a financial planner can help you achieve your financial dreams and goals.
Retirement Savings Become Much More Significant As Pensions Become Extinct And Social Security Changes.
Retirement income is often referred to as the three-legged stool because traditionally retirement income has come from three sources: pensions, Social Security and your own savings. Well, the three-legged stool is looking pretty lopsided for many people these days as pensions become extinct and Social Security changes take place.
How Are Social Security Benefits Calculated? Some Facts And Issues Affecting The Benefits
One of the most popular Social Security questions that I hear from baby boomers getting ready to retire is "how are Social Security benefits calculated?" This is an important question because it could affect how long you need to work, whether you should continue to work during your retirement years
Social Security Spousal Benefit: What Benefits Is Your Spouse Entitled To?
Can a spouse collect on her husband's social security if she reaches retirement age before her husband? No. In order for a wife to collect Social Security benefits on her husband's earnings the following requirements must be met:
Completely New Regulations Imply A Lot More Individuals Doing Roth IRA Conversions In 2010
As we near the end of 2010, countless people have already done Roth IRA conversions, and many others are questioning if a Roth IRA conversion in 2010 is the right move for them.
The Report Of Americans Buying Gold Coins
Buy gold coins is becoming popular as an investment for two key reasons. First, they can be easily purchased and easily sold because they are guaranteed by the United States government. Buying gold coins in trust Gold Eagles
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