Money | 10/17/2008 8:01 am

The Good News: Social Security Checks to Rise in 2009

By The Staff at wowOwow.com

Social Security benefits for nearly 50 million people will rise 5.8 percent next year, the Social Security Administration announced Thursday.

After the increase takes effect, the average retiree will receive an additional $63 each month, according to the Associated Press.

The boost is the largest increase since 1982. Increases in Social Security as well as Supplemental Security Income benefits are mirrored each year on the rise in the Consumer Price Index — the government’s closely watched inflation barometer — from July through September.

Starting in 2009, the average retiree’s check will climb from $1,090 to $1,153, the AP estimates.

Last month, the head of the Congressional Budget Office Peter Orszag released a 10-page document outlying the direct impact of the recent turmoil in the financial markets on retirement securities. According to a government analysis, American’s retirement plans — including pension plans, IRAs and 401(k)s — have lost as much as $2 trillion over the past 15 months.

The elderly that have few assets — including retirees relying mostly on Social Security checks — may not be suffering directly from recent stock sell offs, but they may be feeling the sting from soaring food prices. They’re also feeling the housing crunch; Americans over age 63 pulled $300 billion out of their home equity through refinancing from 2001 to 2006, lowering their net worth.

More at wowOwow:

Calculate Your Social Security Benefits Online

Congressional Budget Office Report:"The Effects of Recent Turmoil in Financial Markets on Retirement Security"

Read more about: Business, Career, Finance, Food, Money, News, Retirees, Retirement, Savings, Social Security, U.S.

7 Reader Comments (so far…) Sign In or Register to comment

This is fantastic news for those currently recieving SSI. However, will it deplete itself or will it be available for those of us down the road when it is needed for those, to supplement retirement, when that time comes?

By HA BIBI on 10/17/2008 11:25 am

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Elaine, most people do not realize that Congress has for decades been using Social Security Income to help pay the bills. It is lumped in with all the treasury monies, instead of held out as a “lock box” budgetary item. It should NEVER have been put in with the total income across the board. We have been fleeced just one more time, and again… and again. I called several years ago, and told my Congress members to pay it back, and stop stealing our money. Of course, I am only one voice. If enough people were to contact their Senators and Reps., and tell them to keep their cotton picking hands off our security income, it would make a world of difference. These folks really do want to be elected, again. WE the PEOPLE really do have the power, if we would simply assert it!

By Ro H on 10/20/2008 1:23 am

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This is good news made even better because there is no increase in Medicare payment. For the people who rely solely on SS benefits to live on, they will be able to splurge on the occasional apple or piece of meat after paying for their meds.

By Marjorie C. on 10/17/2008 12:11 pm

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The bad news is that rents are up, food is up, and energy costs are up, and these will deplete the increase in social security. Meanwhile, seniors with money in retirement funds are in big trouble. I see no splurge on the horizon.

By Elizabeth Bennett on 10/17/2008 7:38 pm

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And, Medicare D is nearly ‘out the window.’ There will have to be some changes made in that. What the public in general does not realize is that those who are retired pay for Medicare each month either directly, or out of their Social Security checks. In regards to the misappropriation of the funds paid into SS by employees, and funds siphoned off (for the Pentagon budget) from the SS trust fund, this really calls for an independent audit of the entire program. We merely have to submit our signed letter to the OIG, and USIG demanding that be done, post haste. That goodness elders know how to survive on very little - most of our younger population hasn’t a clue what to do. And, without work there will be far less funds being paid in, if and when they can ‘get in’ to the SS fund. Take time out to fill out these questions, and do it often if disabled, retired, and/or on a low, fixed income (or not): Check your benefits online: http://www.benefitscheckup.com/ This is very helpful for seniors, and those with extraordinary situations. I use it daily as I volunteer assisting people online in health care consumer advocacy; there are tragic stories out there, and it’s not only the government’s fault. Our medical profession is becoming an oxymoron.

By C jay on 10/20/2008 2:02 am