(Source: South Florida Sun-Sentinel)
No matter what the 50 million Social Security recipients say, there's really an upside to prices going down.
You see the recent news that the cost of living declined 2.1 percent between the third quarter of 2008 and the third quarter of 2009 means Social Security beneficiaries won't get a cost of living adjustment next year.
Congress set it up that way. If inflation goes up, those checks keep pace. If prices go down, the checks stay the same.
Retirees don't like that, of course. They'll note that this is the first time they haven't gotten an inflation-boost since the cost-of-living adjustments began in 1975.
But last year, they got a big raise, a 5.8 percent increase. Their checks went up a lot and they're staying there, while prices go down.
Another plus: President Barrack Obama has proposed giving Social Security beneficiaries a $250 check next year. It would be a second stimulus.
CCH points out that this works out to equal a 1.8 percent increase in the average monthly retirement check.
If Obama prevails, retirees' income goes up anyway, even though prices did not.
___
(c) 2009, Sun Sentinel.
Visit the Sun-Sentinel on the World Wide Web at http://www.SunSentinel.com
Distributed by McClatchy-Tribune Information Services.
_____
TO SUBSCRIBE TO NEWS2USE
Items in the News2Use package are not included in your MCT News Service subscription. You can subscribe to the News2Use package or purchase the items a la carte on MCT Direct at www.mctdirect.com. To subscribe, please call Rick DeChantal at Tribune Media Services at (800) 245-6536 or rdechantal@tribune.com. Outside the United States, call Tribune Media Services International at +1-312-222-4444or e-mail tmsisales@tribune.com.
For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.
A service of YellowBrix, Inc.
