Social Security Benefits: Certain Key Details On Cost Of Living Adjustment



For the 2nd year in a row people who rely on Social Security wont be receiving a cost of living increase. This is only the second time since the cost of living adjustment (COLA) was adopted that receivers have not received an increase.

The reason Social Security benefits wont be revised in 2011 is that inflation has been very low. The whole premise behind the COLA is that benefits are adjusted for inflation so receivers can sustain increasing prices. If there's no inflation, there is no need for cost of living increase. The most recent inflation numbers published by the Labor Department shows that prices are lower than they were in 2009, the last time Social Security benefits were increased.

The cost of living adjustment in 2009 was the largest seen in 27 years at 5.8%. The raise in 2009 was so large due to gas prices that sky-rocketed in the summer of 2008. When gas prices fell, so did the overall inflation rate. While the government can't reduce Social Security benefits if there is deflation (when prices are decreasing), they can decide to not give a COLA increase, which was the case for 2010 and looks to be for 2011.

Possible Incentive Payment to Help Seniors Who Depend on Social Security Benefits

To help Seniors who rely on their Social Security benefits to help with living expenses, Congress will be voting on a $250 extra payment for Social Security receivers to help make up for the fact that Social Security benefits will remain the same for second year in a row. An update will be provided when the bill has been voted on.

No Social Security COLA Means No Increase in Medicare B Premiums

One silver lining to no cost of living increase is that Medicare Part B premiums will not go up for present enrollees. A small percent of Medicare Part B participants will pay increased premiums, including people who've Medicare Part B but who are not yet collecting Social Security benefits, people who are considered "high income" and people who are just now enrolling in Part B. However, a "hold-harmless" facility protects current participants from rate increases if their Social Security benefits do not raise, so no cost of living raise for Social Security recipients also means no Medicare Part B premium increase either.

Some Of The Key Exceptional Roth IRA Withdrawal Rules Which Might Aid You To Take Money Out Of Roth IRA
Roth IRAs are governed by the IRS; as such there are many Roth IRA withdrawal rules that must be followed before you take money out of your account. In this article we'll discuss Roth IRA distributions; when they can be taken, when and if they are taxable, when and if penalties might apply.

Submitting Your Social Security Application: When And How
As you get closer to retirement one of your top questions is probably when and how to submit your Social Security application. Should you apply at age 62 or 66? What are the steps to applying for Social Security once you've decided to start collecting retirement benefits?

A Few Vital Facts Which You Have To Know About Social Security Spouse Benefits
When most people think about Social Security, they naturally think of retirement benefits. However about 1/5 of all Social Security benefits are spousal or survivor benefits, so when you're planning for retirement, it's important to consider the fact that you or your spouse may collect Social Security survivor benefits

Social Security Eligibility Criteria: What Are The Requirements For A Homemaker To Collect Social Security?
When Social Security was first established, most families only had one bread-earner, and only the working spouse qualified for retirement benefits. This caused financial difficulties for the spouse who didn't work (and therefore didn't qualify for Social Security) if the working spouse passed away first.

Social Security Widow Benefits - What Occurs To Your Social Security Benefits When Either Spouse Dies
When Social Security was first established, it only paid retirement income to workers who qualified. It was later amended to include benefits for spouses and survivors, which made it more of a family or insurance plan, instead of just a retirement plan.

How Are Financial Planners Paid? Which Type Of Financial Advisor Is Perfect For Me?
There are many different types of financial planners. Not only are financial advisors compensated differently, but the services they provide vary quite a bit as well. Here is a quick summary of the different types of financial advisors and how they can help you.

Few Valuable Tips- To Learn About Getting A 401K Plan.
Retirement income is often referred to as the three-legged stool because traditionally retirement income has come from three sources: pensions, Social Security and your own savings. Well, the three-legged stool is looking pretty lopsided for many people these days as pensions become extinct and Social Security changes take place.

Using Government Awards So That You Can Upgrade And Improve Your Own House.
Being on the property ladder whether renting or owning your own home it can be a very expensive ordeal.

New Rules Imply More Men And Women Doing Roth IRA Conversions In 2010
As we near the end of 2010, countless people have already done Roth IRA conversions, and many others are questioning if a Roth IRA conversion in 2010 is the right move for them.

Find Out The Best Way To Apply For Social Security
If you areapproaching retirement, you are probably already looking into how to apply for Social Security benefits. Generally, you can apply once you are within 120 days of your 62nd birthday. There are several things you should know to make the application process as smooth as possible.

On The Subject Of Social Security Impairment: What You Need To Know Ahead Of Filing For Disability Benefits
Most people think of retirement when they hear Social Security, however Social Security provides benefits to people who are disabled as well. The list of requirements that must be met for Social Security disability benefits is pretty long, and many people don't meet those requirements.

How A Gold Coin Prices Guide Might Help A Budding Numismatist
Coin collecting, there are tools that you'll need to acquire to make your numismatic experience both fun and rewarding. The most valuable tool that you can get your hands on is an up-to-date gold coin price guide. Inside you will find great information to help you enjoy your new hobby