October 15th, 2010
09:12 AM ET

Social Security benefits won't increase for second straight year

Social Security beneficiaries will see no increase in their benefit checks next year, the federal government said on Friday.

For more than 58 million seniors and other Social Security beneficiaries, 2011 will mark the second in a row without an inflation adjustment.

Inflation has been low in the past two years because of the recession. The Bureau of Labor Statistics on Friday morning reported prices were up only slightly over last year.

The last Social Security inflation adjustment was in 2009: Beneficiaries got a higher-than-normal 5.8% increase because of a temporary spike in energy prices in the third quarter of 2008.

Soon after, however, energy prices plummeted. Then the bottom fell out of the economy and by the third quarter of 2009 overall price levels had fallen 2.1% from the same period a year earlier. That meant no increase in 2010 Social Security benefit checks.

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Filed under: Economy
soundoff (69 Responses)
  1. Gilbert Hernandez

    America no longer takes good care of their own as many years ago. First come the parasite illegals, then foreign terrorists who want to kill us all (they need our defense lawyers, and we must provide food and shelter for them. Right, ACLU?) Then come the Billions to Pakistanan, Afganistan, Iraq, etc. But NO. Absolutely NOT-No COL increase for our American senior citizens who have paid into the system.

    October 15, 2010 at 8:50 pm | Report abuse |
  2. denise

    Just curious – why do any of you feel anyone on any governmental program should have any type of automatic COLA? Very few employers are providing COLA, some are reducing pay, and take home pay is decreasing with the increase in taxes and paying for employee "benefits.". Everyone is having to reduce spending – yes I know at some point you can't do anymore – but why do you feel this should be automatic? Not saying seniors or disabled or military do in general – but we all see people with cell phones, cable TV, brand name items that are supposedly hurting! It's called personal responsibility. And if you are of working age today, you are crazy if your sole source of retirement planning is the government!

    October 15, 2010 at 9:47 pm | Report abuse |
  3. Sherri W.W.

    @denise~There are quite a few reasons why seniors should get their very small raises each yearand certinly our military disabled speaks for itself~as well as other disabled folks who have paid FICA every week for usually 40~50 years!~1 reason is because,when seniors DO get the COLA raise,then what they pay for medicare also rises,to take about half the raise[the law prevents raising medicare fees if no COLA raise goes thru]but it DOES NOT prevent the MEDICINE PART D from rising costs each year,whether you get the COLA or not.~the reason for this is that since our economy had NEVER been bad enough until 2008[BEFORE Pres O. was ever even ELECTED,much less in office] ~to prevent the COLA raise from going forward in 2009~nobody thought it would EVER get bad enough to stop the raise~so they did not put it in the law,in 2006,to prevent ?edicine from going up in cost for seniors,as the law prevents raising the healthcare part if no COLA.~~And while people should,if possible,have a 401k or something else to go along with soc.sec.~not all jobs offer that AND as we all found out in 2008~you can lose ALL of what you put into ANYTHING Except Soc.Sec.~so paying into Soc.Sec.all your working life is still&always the best way to be SURE you can live after you work 50years!~Also,what you get with no SS,would be EVERYBODY on welfare~instead of paying for your own by paying the FICA each week~and you dont get much over poverty level on SS anyway while seniors&disabled have to tk the most meds usually~THATS WHY we need the new HCare law BAD IN THIS COUNTRY!

    October 16, 2010 at 1:14 am | Report abuse |
  4. Sherri W.W.

    well @denise I am gonna try again to anser your ?,since my last post got messed up~a shorter version though because I got to get some sleep tonight!~anyway~bottom line is~you pay your FICA TAX EACH PAYCHECK for 40/50yrs,and it is still the BEST way to be SURE you will have at least a small amount[and it is small]to live on [Soc. Sec.]when you can no longer work.it is NOT welfare~you pay into every day you work,and while its a good idea to have something like 401K~we all saw,in 2008,that you can LOSE all that in a hurry!~Soc.Sec.is ,and probably will always be~the only SAFE thing to put your money in each week!~And,when you get COLA raise~then your medicare payment automatically raise,to take about half of your raise each year.Also,naturally,seniors and disabled usually take the most Medicine and that goes up every year.That is a big reason we need the new HealthCare bill! starting in Jan. medicare has to do more for your $ and more medicine is covered~and the cost is being brought under control with medicare/medicaid 1st~then costs for regular insurance will start coming under control the next 2 years.Hope that answers some of your ?~but saving thru Soc.Sec. is always your best bet throughout your working life.

    October 16, 2010 at 1:50 am | Report abuse |
  5. okay

    Thats a load of crap..social security will run out in the next 20-30 years..it might be the best investment if your 50 or older but anyone below that age is never gonna see a dime of the money they put in !

    October 16, 2010 at 3:54 am | Report abuse |
  6. okay

    .

    October 16, 2010 at 4:55 am | Report abuse |
  7. Buddy

    WOW!What a spirited debate... I feel for our seniors on SS and I emplor everyone who reads this and has the means to adopt one and help them as much as possible. As for the SS program it's a losing proposition. The FICA that current workers are paying goes directly to current recipients. There really is no surplus. That's why they can't give current workers the option to bow out. As for the lack of SS increase if we don't like it then emplor our legislators to change the law!! However, let's not forget to figure out how to pay for it before we do otherwise our kids and grandkids will. As for the true lazy people or freeloaders that live off of us... They truly have no incentive to work as long as the money keeps flowing. Does anyone who is reading this see a pattern? OUR GOVERNMENT PROMOTES POVERTY!! It enable freeloaders to continue to do just that... FREELOAD!! I have a true life example of that in my family right now! Understand this, there is 1 bag of money that runs this country and if there are more people that take from the bag than contribute to it that's called a deficit!! There are too many people taking from that bag right now! Stop the madness!

    October 16, 2010 at 7:23 am | Report abuse |
  8. phil

    Those "other beneficiaries" are a sub-cultur of "Americans" who, though perfectly able to work, opt for early SS. When the SS admin. challenges their claim, they hire slick attorneys who demonstrate that it's cheaper for SS to pay than to deny claims. Nazi's called them "work-shy individuals" and more of them went into concentration camps than Jews. What? And you thought our Homeland security prisons were for the tens of thousands of terrorists they planned on arresting?

    October 16, 2010 at 11:49 am | Report abuse |
  9. PEABODY

    2009 FIRST TIME IN FIFTY YEARS NO RAISE FOR SOCIAL SECURITY, DISABLED VETS, AND RETIRED MILITARY. NOW AGAIN IN 2010.

    How convenient for Obama after no Cost of Living for Social Security and Veterans for the 2nd year in a row the price of gas has gone up and now food prices

    January 7, 2011 at 9:48 am | Report abuse |
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