Social Security Benefits to Increase 4.1 Percent Next Year (Medicare up)

[papau]

http://ap.tbo.com/ap/breaking/MGBK6F1HSEE.html
Social Security Benefits to Increase 4.1 Percent Next Year

By Martin Crutsinger The Associated Press


WASHINGTON (AP) - More than 48 million Americans will get a 4.1 percent increase in their monthly Social Security checks next year, the largest increase in more than a decade. For the average retiree, it will mean an increase of $39 a month.

The cost of living adjustment, or COLA, was announced Friday by the Social Security Administration. It will be the biggest increase since a 5.4 percent gain in 1991. The increase last January was 2.7 percent. <snip>

But about one-fourth of the monthly cost of living increase will be eaten up by a rise in Medicare premiums. The government earlier announced that the monthly Medicare premium that goes to pay for doctor's visits and other services will increase by $10.30 a month starting next year.

And retirees and all Americans will be facing sharply higher energy bills this winter. The government is estimating that the average household will pay 48 percent more this year to heat with natural gas and 32 percent more for heating oil. <snip>


The Social Security Administration also announced Friday that 11.3 million workers will pay higher taxes next year because the maximum amount of Social Security earnings subject to the payroll tax will rise from $90,000 currently to $94,200 next year. In all, an estimated 159 million workers will pay Social Security taxes next year. <snip>




http://ap.tbo.com/ap/breaking/MGB6QLYHSEE.html

Consumer Prices Surge in September by Largest Amount in 25 Years

By Martin Crutsinger The Associated Press

Published: Oct 14, 2005


WASHINGTON (AP) - <snip>The Labor Department reported Friday that inflation jumped 1.2 percent last month. It said that 90 percent of that increase came from a record-setting 12 percent surge in energy prices which reflected gasoline prices that briefly topped $3 per gallon last month after widespread shutdowns of refineries and oil and natural gas platforms along the Gulf Coast.

Meanwhile, the Federal Reserve reported that the devastating hurricanes sent output at the nation's factories, mines and utilities plunging by 1.3 percent in September, the biggest one-month drop in more than 23 years. <snip>

The sharp jump in consumer prices in September helped to push next year's cost of living adjustment for 48 million Social Security recipients to 4.1 percent, the biggest advance since 1991. <snip>

In other economic news, the Commerce Department reported that retail sales managed to post a small increase of 0.2 percent in September. However, that tiny gain came after a huge 1.9 percent plunge in retail sales in August. <snip>

[melissinha]

1. this increase and inflation

so how does this increase compare to annual inflation?

[MaineDem]

2. "earnings subject to the payroll tax will rise"

Whoa....wasn't this a major bone of contention? Didn't the GOP insist they WOULDN'T raise the ceiling?

[papau]

6. Dem's want a no ceiling or raise to 150,000 - GOP wants only inflation

increase.

For "lovers of the flat tax", the GOP is curiously afraid of a flat tax for Social Security that covered all income and gave benefits based on all income (granted the benefits formula is slanted to give the richer folks minimal extra benefits on extra extra earnings - but we are talking FLAT TAX here - and I thought that was a good?).

[notadmblnd]

3. This is a bit of good news to me

I'm a widow raising a minor child. I worked until about a year after my husband died and my job of 28 years was off shored. I'm wasn't old enough for early retirement and my pension, so if it wasn't for SS survivors benefits my son and I would be homeless right now.


We do ok on SS and my husbands pension combined gives us just enough to get by and enables me to stay home and finish raising him (he's 12). This little increase I'm sure will go to the energy companies this winter and I won't have to worry so much about running the heat.

[UpInArms]

4. since this increase is tied to the rate of inflation

and they extract food and energy from that number (for whatever stupid reason, as every needs to stay warm and eat), inflation must truly be rampant.

[papau]

5. The SS increase calc includes Energy/food - but it is lower than reality

sigh....

:-(

But Do watch for "core inflation below expectations" articles in all MSM today as they try to sell the without energy/food inflation numbers.

[WePurrsevere]

7. It's better then a poke in the eye" BUT for those of us in the Northern US

it's going to be a drop in the bucket towards our increased heating bills and cost of living over this coming Winter.

I truly wish that Congress would do a COLA quarterly (and/or perhaps scale it somehow for various regions cost of living) so that it might keep pace with the rising costs better. This COLA increase is based on the cost of living index for Sept of last year to Sept of this year. Heating oil and gas prices were not nearly as high now as even a couple months ago and prices of groceries has increased right along with the gas prices.

For people on Social Security Disabilty especially it's a serious problem since it's not like most of them can go out and pick up an extra job to help a bit.

[annabanana]

8. go ahead..TRIPLE it even...

not gonna be in spitting distance of covering gas and heating oil increase...

[JitterbugPerfume]

9. I become elible for medicaid

next month

This will ease the pain some, along with my survivors benefits and pension

Getting old is not for sissys (I think Bette Davis said that)