New Social Security COLA Not As Great As It Sounds

October 26, 2011

At first, many recipients of social security benefits were overjoyed when they learned that the Social Security Administration (SSA) had announced a 3.6 percent increase in payouts beginning next year as part of a cost of living adjustment (COLA). With an increase in Medicare costs though, and a bleak future for the social security program as a whole, many people are questioning if the increases will do any good.

According to FOX 19 News, the 3.6 percent increase means an estimated $30 billion additional dollars will be paid out to the millions of retirees and beneficiaries in the country. This sounds like a big number, but only equivocates out to about an extra $39 per month for someone receiving social security checks, and only an additional $18 per month for those with Supplemental Security Income. While this seems great on the surface, the majority of this newly allotted money will be eaten up by the government’s increase to Medicare Premiums. This is not the only problem that has Americans casting shadows of doubt on the system.

It has been estimated that the program may not have the budget to survive to the next generation of retirees without benefit cuts or tax increases. Also, higher unemployment rates in the country means that less people are paying into the system. In other words, the program is spending more money than it can bring in, and will eventually dry up.

The Indiana Social Security Lawyers with Fleschner, Stark. Tanoos & Newlin want you to tell us your opinion on the Social Security payment increase by posting to our Facebook page.

Reach out to a Terre Haute Personal Injury Attorney Today

The financial burden that often comes with a serious injury can be too much for many people to bear. Unexpected medical debt, damaged personal property, and the sudden loss of income can impact the budgets of most families. The good news is that a successful injury claim could help reduce that financial strain after a serious accident. Get in touch with a Terre Haute personal injury lawyer with Fleschner, Stark, Tanoos & Newlin to learn more.

    *You agree to our Terms and Privacy Policy, and you are providing consent to receive communications including calls, emails, and texts.