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Social Security – Are Seniors Getting Swindled?

The 2009 Social Security and Medicare Trustees Report has some disturbing, but not entirely unexpected news about how the recession is affecting social security. If you’re currently receiving social security benefits, you are in for another surprise. The Social Security and Medicare Trustees have predicted that social security beneficiaries won’t receive an annual cost of living adjustment in either 2010 or 2011.

This failure to come through with an annual increase in benefits is the first time in more than 30 years for the Social Security Administration. It’s interesting to note that Social Security recipients are facing 2 years of no COLA increase after 2009’s increase, which was the largest annual cost-of-living adjustment since 1982. This will largely affect senior citizens and those living in assisted living facilities. If no action is taken to improve the fiscal health of social security, the payroll taxes paid by U.S. workers are expected to cover the cost of Social Security benefits until 2016. The U.S. Government relies on COLAs to safe guard the purchasing power of social security checks from inflation. To calculate the size of Social Security COLAs, one must gauge inflation. When it rises by one tenth of a percent or more from 1 year to the next, Social Security pays a COLA to reflect this increase. But when it rises by less than 0.05 percent, as it did last year thanks to plunging energy costs, no COLA is paid.

April Taxes by *Inonibird on deviantART

After that, the government will have no choice but to take money from the Social Security trust fund on an annual basis to make up the difference between the payroll taxes received and the money given out in benefits. According to predictions, the government would be able to maintain that until 2037 when the trust fund would finally be empty and payroll taxes would cover no more than 78 percent of the promised benefits. If you retire before 2037, you are almost guaranteed to receive most of the benefits you were promised and have been anticipating, but most likely not all.

Social security benefits are the main source of income for more than half of the elderly citizens in America, many of whom reside in assisted living facilities. They depend on these benefits to sustain their assisted living lifestyle and spend their golden years in comfort. This is a number that is almost certain to grow as more and more baby boomers begin retiring. Many elderly citizens find happiness and a comfortable lifestyle by moving to an assisted living facility. They provide the medical care and recreational requirements baby boomers need. Assisted living facilities customize specific service plans for their residents, so as not to change a senior’s habits and lifestyle while at the same time catering to their exact needs.

800Seniors.com is a leading referral system in the Elderly Healthcare industry. We are located on 5400 Atlantis Court, Moorpark, California 93021. 800Seniors.com provides the perfect match between seniors searching for health care provisions such as Home Care, Home Health, Skilled Nursing, Hospice Care, Medical Supplies, as well as a variety of Assisted Living Philadelphia and Care Homes nationwide. Take the confusion and hassle out of the search. For more information call 1-800-768-8221, visit http://800seniors.com or fax us your details at (805)517-1623.

About The Author: Gloria Ha’o Schneider is an expert in senior citizen and baby boomer issues. Her topics revolve around Senior Living and Healthcare to provide the latest information to this demographic as well as their families and loved ones.

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