American Republic Online

Another year means another cost of living adjustment for those on Social Security. Since inflation has been quite low lately (even including gas gouging by Big Oil) the raise SS recipients will receive is 2.3%. How much was your raise this year?

In any event, here are the numbers behind the increase. There are currently 49,633,000 on Social Security (not including the 4+ Million receiving Supplemental Security Income) as of August 2007 according to the Social Sec. Administration. Taking the average increase of $24 per month and doing the math gives you the following:

$14,294,304,000. That’s just the increase. How much longer can we continue to ignore this problem?

Or look at the problem another way:  In 2008 the average SS check will be for $984.84 and that burden will be split between 4 workers, or $246.21 per worker per month.  As the baby boomers retire the ratio of workers will drop to 3:1.  Even with modest cost of living adjustmentsthe average check will hit $1211.22 in 2015 but only be split to three workers.  That’s right, you can look forward to $403.74 out of each month’s paycheck.  Wouldn’t it be nice to have that money for yourself?

And that’s just around the corner.  The numbers continue to get worse the father ahead you look.  How will Americans save for their own retirement when they’re busy paying for everyone else’s?

• SSA.gov
• Social Security Checks to Rise 2.3%