Social Security COLA Doesn't Match Inflation

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Social security was not designed to provide one-third of ones retirement income. It was designed so that that there would be fewer older persons living in poverty. The average intended social security recipient had no other source of funds for living once they no longer worked. And, yes retirement was set at 65 because that's when social security payments became available.
When the 401-k was invented as a defined contribution plan to replace the defined benefit plan of the traditional pension, social security was considered to be the other part of the retirement income. However, most Americans don't have adequate funds in their 401-k funds because they haven't contributed and even those retirees who had been able to contribute the maximum amount and worked for companies that provided significant matching funds got hurt badly during the last crash because they weren't able to continue to contribute to rebuild.
Some employees who pay into social security, who have a limited defined benefit plan and also can pay into a 401-k are those for whom social security can be considered 1/3 of their retirement income. They are a small minority of retirees.

John R Franks of OH 5:22PM November 09, 2010

Of course the insurance premiums are going to go up. Pelosi, Reid, and Obama have mandated additional coverages be provided - including the redefinition of minors to extend to age 26. Did you expect something for nothing?
Seniors should share the economic pain, albeit temporary, that all citizens are going through. They don't get a free pass, regardless of what AARP and the Democrats tell them.
A common sense healthcare reform act could have been written in a few hundred pages to limit lawyers sucking up healthcare costs, allowing competition across state lines, and gradually cutting the cord between insurance and employment so that individuals and groups could have sufficient market demand to bring down costs. Instead, we have a monster that will bring government further into the lives of all Americans.

J Gordon of FL 12:44PM November 09, 2010

Although I believe that the COLA used for retirees is not realistic, the fact that people spend all their money during their working years is just plain stupid. Social security was enacted to provide 1/3 of a person's retirement needs. Somehow we've come to view it as a pension plan that should provide all our needs, and we don't see the need to save for retirement. Crabbing about the program and the politicians is ignorant. Just look in the mirror and see the fool that didn't take care of you! Of course, the politicians have used the program to further their own ambitions by adding SSI and Medicare to it just to buy votes. Well, again look in the mirror and you'll see the ignoramus who votes for these liars who promise things that YOU will have to deliver with YOUR taxes. Happy with the person in the mirror?

El gato of WI 10:55AM September 20, 2010

Not only is part B going up but the supplmental insurance is shooting for the moon. If mine doubles the premium like last year ,I will have to drop it.
Our retirement is not like we had pictured it would be ,comfortable enough to take of our selves,take a few vacation trips,, have a newer car so as not to worry about breakdowns on the road & be at the mercy bandit like repair shops!
Between food,gas for the car,& insurance ,thats about were our retirement funds go!! I am not having fun !!!!!!!

Ron Berghofer of OR 12:52PM August 16, 2010

No we did not receive a cost of living raise last year.
The COLA is judged July through September only, not for the whole year.
There will be no increase this year either.
The Federal government in general, Pelosi, Reid, Immanuel, Chris Dodd, in specific are screwing us blind.

Edwin of AZ 11:00PM August 09, 2010