Leamon Murphy, 76, comments on Social Security benefits after lunch Tuesday at Desert Villas Apartments in El Centro. "You start losing money," he said. (JOSELITO VILLERO) |
Some Valley senior citizens were disappointed to hear the government would not increase Social Security pensions to compensate for inflation, but they have backup funds.
“I know it’s going to affect people who live just off Social Security and depend on Social Security,” Ethel Grace, 83, of Imperial said.
Grace, who worked for the Economic Opportunities Commission for 21 years, retired in 1987. She said she receives retirement benefits in addition to Social Security. She spoke from the Desert Villas senior reduced lunch hall Tuesday.
“It’s not affecting me because I do get Social Security and I have retirement that I get from my husband,” Grace said. “I’m living comfortably.”
This year was the first without an automatic Social Security adjustment increase, and 2011 will be the second, according to The Associated Press. Consumer prices are lower than in 2008, and there will likely not be a cost-of-living adjustment for 2011 because of the lower prices.
The Associated Press reported the absence of a cost-of-living adjustment puts many seniors in a bind because they rely on the increase during the recession.
Leamon Murphy, 76, of El Centro is a retired Imperial Irrigation District employee. He worked for the district from 1955 until 1998. He said frozen Social Security pensions for 2011 would make his situation slightly more difficult, especially with taxes. He said he has noticed many day-to-day products and services increase in price.
“I’m a little upset,” he said. “They can say whatever they want to. Utility bills have not gone down. I keep wanting to know, what do they call fairness for senior citizens?”
But Murphy said he is fortunate because of his retirement funds he accumulated while employed and because he has health coverage. He also had lunch at the Desert Villas senior lunch hall.
“In a way, I’m sitting in an ideal position,” he said.
The average monthly Social Security pension is $1,072, according to the AP. About 58 million retirees and disabled Americans receive Social Security or Supplemental Security Income, the report stated. It also stated Social Security is the primary income for 64 percent of retirees.
The Social Security Administration determines automatic pension increases based on the annual Consumer Price Index, which approximates the cost of living from year to year. There was a 5.8 increase in 2009 due to energy costs but inflation has not increased since then, leading to no increases in Social Security benefits, according to the AP.
It will likely be 2012 before inflation triggers an increase in Social Security pensions.
Paula Obra, 90, of Imperial, worked as a nurse for 45 years in El Centro. She said she could use any extra funds to cover daily expenses but she also receives retirement.
“I want to get any money left over to pay the bills,” she said from the Desert Villas dining hall.
Murphy said even if he is in a stable situation, many senior citizens depend on the increases.
“It will hurt senior citizens,” he said. “There are no ifs ands or buts about it.”
>> The Associated Press contributed to this report
>> Staff Writer David Steffen can be reached at 760-337-3452 or dsteffen@ivpressonline.com
By the numbers
58.7 million Americans who receive Social Security benefits
$1,072 Average amount of monthly benefits
5.8% Increase in 2009 Social Security benefits to compensate for inflation
64% Percentage of retirees who rely on Social Security as primary source of income
What they mean
Cost-of-living adjustment The automatic increase in Social Security that is put in place if inflation increases from one year to the next. There is no COLA if there is no inflation, which is the case for 2011.
Consumer Price Index An annual measure of inflation. CPI is calculated by gathering the same “basket” of goods and services each year and comparing the price to the previous year. The result calculates annual inflation.
“I know it’s going to affect people who live just off Social Security and depend on Social Security,” Ethel Grace, 83, of Imperial said.
Grace, who worked for the Economic Opportunities Commission for 21 years, retired in 1987. She said she receives retirement benefits in addition to Social Security. She spoke from the Desert Villas senior reduced lunch hall Tuesday.
“It’s not affecting me because I do get Social Security and I have retirement that I get from my husband,” Grace said. “I’m living comfortably.”
This year was the first without an automatic Social Security adjustment increase, and 2011 will be the second, according to The Associated Press. Consumer prices are lower than in 2008, and there will likely not be a cost-of-living adjustment for 2011 because of the lower prices.
The Associated Press reported the absence of a cost-of-living adjustment puts many seniors in a bind because they rely on the increase during the recession.
Leamon Murphy, 76, of El Centro is a retired Imperial Irrigation District employee. He worked for the district from 1955 until 1998. He said frozen Social Security pensions for 2011 would make his situation slightly more difficult, especially with taxes. He said he has noticed many day-to-day products and services increase in price.
“I’m a little upset,” he said. “They can say whatever they want to. Utility bills have not gone down. I keep wanting to know, what do they call fairness for senior citizens?”
But Murphy said he is fortunate because of his retirement funds he accumulated while employed and because he has health coverage. He also had lunch at the Desert Villas senior lunch hall.
“In a way, I’m sitting in an ideal position,” he said.
The average monthly Social Security pension is $1,072, according to the AP. About 58 million retirees and disabled Americans receive Social Security or Supplemental Security Income, the report stated. It also stated Social Security is the primary income for 64 percent of retirees.
The Social Security Administration determines automatic pension increases based on the annual Consumer Price Index, which approximates the cost of living from year to year. There was a 5.8 increase in 2009 due to energy costs but inflation has not increased since then, leading to no increases in Social Security benefits, according to the AP.
It will likely be 2012 before inflation triggers an increase in Social Security pensions.
Paula Obra, 90, of Imperial, worked as a nurse for 45 years in El Centro. She said she could use any extra funds to cover daily expenses but she also receives retirement.
“I want to get any money left over to pay the bills,” she said from the Desert Villas dining hall.
Murphy said even if he is in a stable situation, many senior citizens depend on the increases.
“It will hurt senior citizens,” he said. “There are no ifs ands or buts about it.”
>> The Associated Press contributed to this report
>> Staff Writer David Steffen can be reached at 760-337-3452 or dsteffen@ivpressonline.com
By the numbers
58.7 million Americans who receive Social Security benefits
$1,072 Average amount of monthly benefits
5.8% Increase in 2009 Social Security benefits to compensate for inflation
64% Percentage of retirees who rely on Social Security as primary source of income
What they mean
Cost-of-living adjustment The automatic increase in Social Security that is put in place if inflation increases from one year to the next. There is no COLA if there is no inflation, which is the case for 2011.
Consumer Price Index An annual measure of inflation. CPI is calculated by gathering the same “basket” of goods and services each year and comparing the price to the previous year. The result calculates annual inflation.
