# Social Security COLA Question **URL:** \ **Category:** In My Humble Opinion\ **Created:** [October 1, 2009, 5:33pm UTC](https://boards.straightdope.com/t/social-security-cola-question/512248 "2009-10-01T17:33:36Z")\ **Posts on this page:** 20\ **Page:** 1
**Author:** ![Jake](https://avatars.discourse-cdn.com/v4/letter/j/f475e1/32.png) [@Jake](https://boards.straightdope.com/u/Jake)\ **Post date:** [October 1, 2009, 5:33pm UTC](https://boards.straightdope.com/t/social-security-cola-question/512248/1 "2009-10-01T17:33:36Z")
It is my understanding that we won’t be getting a Cost Of Living Adjustment this year and maybe 2011 also. There has been a bill proposed: "Seniors and members of Congress proposed emergency Cost-of-Living Adjustment (COLA) legislation to compensate for Social Security cuts this year. Sen. Bernie Sanders (I-Vt.) and Rep. Peter DeFazio (D-Ore.) met with seniors from the National Committee to Preserve Social Security Wednesday morning to discuss their proposal that would guarantee Social Security recipients a one-time payment of $250. The proposal, the “Emergency Senior Citizens Relief Act,” would substitute the COLA seniors have received in previous years." In your humble opinions, will this bill pass? God knows most seniors need it! ---
**Author:** ![Susanann](https://avatars.discourse-cdn.com/v4/letter/s/7ab992/32.png) [@Susanann](https://boards.straightdope.com/u/Susanann)\ **Post date:** [October 1, 2009, 9:42pm UTC](https://boards.straightdope.com/t/social-security-cola-question/512248/2 "2009-10-01T21:42:06Z")
The government has said that the CPI, prices, are not going up. Therefore, the seniors don’t need it. Furthermore, Congress has already told us that prices/the CPI will not be going up next year either, so that means no increase in SS next year either. ---
**Author:** ![Jake](https://avatars.discourse-cdn.com/v4/letter/j/f475e1/32.png) [@Jake](https://boards.straightdope.com/u/Jake)\ **Post date:** [October 1, 2009, 9:45pm UTC](https://boards.straightdope.com/t/social-security-cola-question/512248/3 "2009-10-01T21:45:44Z")
\*\*Susanann, \*\*Didn’t want to hear that. But thanks for the response. ---
**Author:** ![Markxxx](https://avatars.discourse-cdn.com/v4/letter/m/5daacb/32.png) [@Markxxx](https://boards.straightdope.com/u/Markxxx)\ **Post date:** [October 1, 2009, 10:33pm UTC](https://boards.straightdope.com/t/social-security-cola-question/512248/4 "2009-10-01T22:33:50Z")
One thing to be very careful about politicans is this. They often do things for publicity or “well I didn’t want it” value. By proposing legislation these congressmen will get credit for a bill they know probably won’t pass. ---
**Author:** ![Really\_Not\_All\_That\_Bright](https://avatars.discourse-cdn.com/v4/letter/r/e8c25b/32.png) [@Really\_Not\_All\_That\_Bright](https://boards.straightdope.com/u/Really_Not_All_That_Bright)\ **Post date:** [October 2, 2009, 2:25pm UTC](https://boards.straightdope.com/t/social-security-cola-question/512248/5 "2009-10-02T14:25:27Z")
Seniors don’t need it. Cost of living adjustments are designed to reflect rising costs. Since last year, costs have not risen, thanks to the slowing economy. In fact, the cost of living adjustment for 2009, which took effect in January, was 5.9%, because gasoline prices spiked in 2008 and the COLA for the next calendar year is calculated based on the CPI and June and July. So Social Security retirement recipients are _already_ getting more than they should. Seniors don’t “need” a $250 handout any more than anybody else does. It’s not like many are first-time homebuyers who lost a ton of equity in the housing market. ---
**Author:** ![LurkMeister](https://avatars.discourse-cdn.com/v4/letter/l/3da27b/32.png) [@LurkMeister](https://boards.straightdope.com/u/LurkMeister)\ **Post date:** [October 2, 2009, 3:31pm UTC](https://boards.straightdope.com/t/social-security-cola-question/512248/6 "2009-10-02T15:31:32Z")
I’m a Federal retiree and I’m not getting a COLA either, since my pension is tied to the CPI just like Social Security. And I just read that my health insurance (also federal) is expected to go up 8.8% so I’ll be having a net decrease in my income. No word that there are any plans for any “emergency regulation” to adjust for this, either. ---
**Author:** ![AuntiePam](https://avatars.discourse-cdn.com/v4/letter/a/f19dbf/32.png) [@AuntiePam](https://boards.straightdope.com/u/AuntiePam)\ **Post date:** [October 2, 2009, 3:37pm UTC](https://boards.straightdope.com/t/social-security-cola-question/512248/7 "2009-10-02T15:37:08Z")
> [@Really\_Not\_All\_That\_Bright](#): > > So Social Security retirement recipients are _already_ getting more than they should. Seniors don’t “need” a $250 handout any more than anybody else does. It’s not like many are first-time homebuyers who lost a ton of equity in the housing market. Yeah, and it’s not like seniors can’t go out and find a job. 😉 You don’t have to be a first-time homebuyer to have lost equity. I was looking forward to the COLA to help offset the raise in the Medicare Part B premium. It’s hard to believe that this is the first year since what, 1975 (?), that the CPI didn’t go up. It sure seems like I’m paying more for everything. ---
**Author:** ![BlinkingDuck](https://avatars.discourse-cdn.com/v4/letter/b/eada6e/32.png) [@BlinkingDuck](https://boards.straightdope.com/u/BlinkingDuck)\ **Post date:** [October 2, 2009, 4:14pm UTC](https://boards.straightdope.com/t/social-security-cola-question/512248/8 "2009-10-02T16:14:14Z")
Wasn’t inflation -2.5% last year? If so, shouldn’t their benefits be cut 2.5%? Why not? ---
**Author:** ![AuntiePam](https://avatars.discourse-cdn.com/v4/letter/a/f19dbf/32.png) [@AuntiePam](https://boards.straightdope.com/u/AuntiePam)\ **Post date:** [October 2, 2009, 4:23pm UTC](https://boards.straightdope.com/t/social-security-cola-question/512248/9 "2009-10-02T16:23:17Z")
Does your pay get cut when the cost of living goes down? ---
**Author:** ![Really\_Not\_All\_That\_Bright](https://avatars.discourse-cdn.com/v4/letter/r/e8c25b/32.png) [@Really\_Not\_All\_That\_Bright](https://boards.straightdope.com/u/Really_Not_All_That_Bright)\ **Post date:** [October 2, 2009, 4:34pm UTC](https://boards.straightdope.com/t/social-security-cola-question/512248/10 "2009-10-02T16:34:42Z")
> [@AuntiePam](#): > > You don’t have to be a first-time homebuyer to have lost equity. No, but house prices are down since 2006. They’re still very much up since 2000. How many people buy homes _after_ retiring? > [@AuntiePam](#): > > Does your pay get cut when the cost of living goes down? Most people don’t get cost of living increases. They get raises, which are (nominally) merit based, not tied to the CPI. ---
**Author:** ![AuntiePam](https://avatars.discourse-cdn.com/v4/letter/a/f19dbf/32.png) [@AuntiePam](https://boards.straightdope.com/u/AuntiePam)\ **Post date:** [October 2, 2009, 5:15pm UTC](https://boards.straightdope.com/t/social-security-cola-question/512248/11 "2009-10-02T17:15:35Z")
> [@Really\_Not\_All\_That\_Bright](#): > > No, but house prices are down since 2006. They’re still very much up since 2000. How many people buy homes _after_ retiring? I don’t have any numbers, but it’s not unusual for retirees to buy and sell. They downsize, or they relocate to be closer to kids and grandkids, or move to a warmer climate. > [@](#): > > Most people don’t get cost of living increases. They get raises, which are (nominally) merit based, not tied to the CPI. Many employers (especially where there are unions) tie raises to the COLA. And let’s not forget seniors whose investments lost value. What puts us in a different, more leaky boat is that we can’t compete in the job market. For every retired CEO or skilled carpenter who has something to offer (and who’s healthy enough to work), there’s a widow who never worked except as a waitress or a secretary (using a typewriter). ---
**Author:** ![Really\_Not\_All\_That\_Bright](https://avatars.discourse-cdn.com/v4/letter/r/e8c25b/32.png) [@Really\_Not\_All\_That\_Bright](https://boards.straightdope.com/u/Really_Not_All_That_Bright)\ **Post date:** [October 2, 2009, 5:18pm UTC](https://boards.straightdope.com/t/social-security-cola-question/512248/12 "2009-10-02T17:18:59Z")
> [@AuntiePam](#): > > For every retired CEO or skilled carpenter who has something to offer (and who’s healthy enough to work), there’s a widow who never worked except as a waitress or a secretary (using a typewriter). Sure, but that brings us back to the main point- if the cost of living has not increased, why should seniors get a cost of living adjustment? Remember, you’ve still got a 5.9% COLA from this year that reflected price increases that never happened. ---
**Author:** ![AuntiePam](https://avatars.discourse-cdn.com/v4/letter/a/f19dbf/32.png) [@AuntiePam](https://boards.straightdope.com/u/AuntiePam)\ **Post date:** [October 2, 2009, 6:01pm UTC](https://boards.straightdope.com/t/social-security-cola-question/512248/13 "2009-10-02T18:01:10Z")
> [@Really\_Not\_All\_That\_Bright](#): > > Sure, but that brings us back to the main point- if the cost of living has not increased, why should seniors get a cost of living adjustment? See, that’s what I don’t get. If the cost of living hasn’t increased, why does it seem like everything costs more? Yeah, gas is lower than last year, but landlords are still raising rents and utility costs are increasing as well. Somehow the county managed to raise my property taxes while lowering the assessed value of my property. (I still haven’t figured that out.) The only thing I’m paying less for is propane, and that’s because there’s competition. Folks who buy heat from one source don’t have a choice, and Mid-American and other utility companies continue to raise their rates. I expect the same is true in the rest of the country. My medical clinic hasn’t lowered their fees and neither has the phone company or the people I get my TV signal from. Prices for staples like milk, bread, butter, sugar haven’t decreased, and some things (like coffee) are way up. Not to mention luxuries – a year ago a four-pack of Frappucino was $3.99. Now it’s $6.99. Dammit. 🙂 But I can’t argue the rule. If the rule says adjustments are tied to the CPI, then that’s the rule. That doesn’t mean I can’t bitch about it. 🙂 ---
**Author:** ![LurkMeister](https://avatars.discourse-cdn.com/v4/letter/l/3da27b/32.png) [@LurkMeister](https://boards.straightdope.com/u/LurkMeister)\ **Post date:** [October 2, 2009, 7:01pm UTC](https://boards.straightdope.com/t/social-security-cola-question/512248/14 "2009-10-02T19:01:48Z")
I was recently notified that the cost of my water will be going up next month. Right after I signed up for satellite TV this year the company raised its rates (since I’m locked in for 12 months I won’t be paying the higher rate until next year, but still…). As I mentioned before, my health insurance rates are going up in January (a lot more than 5.9%, too). The decrease in gas prices only affects me indirectly, since I don’t drive. I’m glad I now own instead of rent, otherwise I’d probably be getting a rent increase. Although that reminds me that the cost of my homeowner’s insurance went up this year. ---
**Author:** ![Really\_Not\_All\_That\_Bright](https://avatars.discourse-cdn.com/v4/letter/r/e8c25b/32.png) [@Really\_Not\_All\_That\_Bright](https://boards.straightdope.com/u/Really_Not_All_That_Bright)\ **Post date:** [October 2, 2009, 8:46pm UTC](https://boards.straightdope.com/t/social-security-cola-question/512248/15 "2009-10-02T20:46:38Z")
> [@AuntiePam](#): > > See, that’s what I don’t get. If the cost of living hasn’t increased, why does it seem like everything costs more? Yeah, gas is lower than last year, but landlords are still raising rents and utility costs are increasing as well. It’s your imagination, unless you smoke, in which case it’s not _everything._ If your landlord is raising your rent, _move._ Unless you live in Manhattan or somewhere like that there’s no reason you shouldn’t be able to find a better deal right now. ---
**Author:** ![AuntiePam](https://avatars.discourse-cdn.com/v4/letter/a/f19dbf/32.png) [@AuntiePam](https://boards.straightdope.com/u/AuntiePam)\ **Post date:** [October 2, 2009, 8:54pm UTC](https://boards.straightdope.com/t/social-security-cola-question/512248/16 "2009-10-02T20:54:39Z")
> [@Really\_Not\_All\_That\_Bright](#): > > It’s your imagination, unless you smoke, in which case it’s not _everything._ Allow me some hyperbole, for pete’s sake. 🙂 > [@](#): > > If your landlord is raising your rent, _move._ Unless you live in Manhattan or somewhere like that there’s no reason you shouldn’t be able to find a better deal right now. We own the house. Three of my kids rent. Two of them (in Seattle) moved to cheaper apartments this year after their landlords raised their rent. And one of those just found out he’s being laid off on 12/31, from a good job with the county. Off the subject of SS and the COLA, but moving isn’t always a reasonable option, especially if you live paycheck to paycheck. Coming up with first/last/security/damage deposits on a new place keeps a lot of people stuck. Times are tough, Boo! ---
**Author:** ![Spice\_Weasel](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/spice_weasel/32/5435_2.png) [@Spice\_Weasel](https://boards.straightdope.com/u/Spice_Weasel)\ **Post date:** [October 2, 2009, 8:58pm UTC](https://boards.straightdope.com/t/social-security-cola-question/512248/17 "2009-10-02T20:58:31Z")
We were kind of discussing this in class the other day. I really don’t know exactly how the Social Security system works, but one thing my professor said is that stalling on the COLA is one way that the government attempts to compensate for the Social Security program long-term funding issues. So maybe this is less about apathy and more about trying to make Social Security work as a long-term social program. Hopefully someone more knowledgeable could elaborate. ---
**Author:** ![LurkMeister](https://avatars.discourse-cdn.com/v4/letter/l/3da27b/32.png) [@LurkMeister](https://boards.straightdope.com/u/LurkMeister)\ **Post date:** [October 2, 2009, 9:58pm UTC](https://boards.straightdope.com/t/social-security-cola-question/512248/18 "2009-10-02T21:58:07Z")
> [@olivesmarch4th](#): > > We were kind of discussing this in class the other day. I really don’t know exactly how the Social Security system works, but one thing my professor said is that stalling on the COLA is one way that the government attempts to compensate for the Social Security program long-term funding issues. > > So maybe this is less about apathy and more about trying to make Social Security work as a long-term social program. Hopefully someone more knowledgeable could elaborate. The formula for calculating the Social Security COLA is, as has been pointed out, directly linked to the CPI which, to the best of my knowledge, is based on the prices of selected goods and services (similar to the way the Dow-Jones Average is based on the price of certain stocks). The government has no direct control over the CPI, and can’t change the formula used to calculate either it or the COLA in any given year. In other words, your professor is talking out of his ass. ---
**Author:** ![Algher](https://avatars.discourse-cdn.com/v4/letter/a/3d9bf3/32.png) [@Algher](https://boards.straightdope.com/u/Algher)\ **Post date:** [October 2, 2009, 10:09pm UTC](https://boards.straightdope.com/t/social-security-cola-question/512248/19 "2009-10-02T22:09:44Z")
> [@AuntiePam](#): > > Does your pay get cut when the cost of living goes down? My pay was cut 7%. My wife’s pay was cut 8%. Both of these are due to the economy. ---
**Author:** ![Spice\_Weasel](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/spice_weasel/32/5435_2.png) [@Spice\_Weasel](https://boards.straightdope.com/u/Spice_Weasel)\ **Post date:** [October 2, 2009, 11:57pm UTC](https://boards.straightdope.com/t/social-security-cola-question/512248/20 "2009-10-02T23:57:03Z")
> [@LurkMeister](#): > > In other words, your professor is talking out of his ass. Her ass. Doubtful. It’s more likely that I misunderstood what she was saying. But thanks for putting it so tactfully. ETA: What about [this](http://www.afsa.org/retiree/SSTweaks.cfm)? Is this maybe what she was referring to? > [@](#): > > Social Security will face a shortfall of about $4 trillion over the next 75 years. The Social Security Administration has prepared a partial list of proposals that would generate savings, mostly through tax increases and benefit cuts. The following is a list some possible proposals or reforms and their anticipated savings: > > Reduce the COLA by 1% $3,188 billions So I was confusing proposed measures with current measures? [Next page](https://boards.straightdope.com/t/social-security-cola-question/512248.md?page=2)