Social Security recipients will not be receiving a cost-of-living adjustment next year, but they’re still hurting in this economy. Many pay a high proportion of their income for health care, where costs are rising more than they are in the overall economy.
One group, the National Committee to Preserve Social Security and Medicare, wants Congress to increase benefits anyway, even though the formula doesn’t call for it, Associated Press reports. It would like to see either a 1 percent increase in monthly payments or a one-time payment of $150.
The cost of a one-time payment, a little less than $8 billion, could be covered by increasing the amount of income subjected to Social Security taxes. Workers pay Social Security taxes on the first $106,800 of income.
Critics argue that Social Security recipients shouldn’t get an increase when overall inflation is down. They said recipients received a big increase in January — after energy prices started to fall, AP writes. They also said Social Security recipients received one-time $250 payments in the spring as part of the government’s stimulus package.
What do you think? Should any special compensation be approved for Social Security recipients?