My mother is 72 years old and she told me on the phone today that next year the government is lowering the social security payments that the elderly people receive and are raising the cost of medicare. How are the elderly people going to make ends meet? They are already having a tough enough time as it is now.
2007-10-24 03:01:20 · 18 answers · asked by renne o 1 in Society & Culture ➔ Cultures & Groups ➔ Senior Citizens
Its because of the baby boomers. Basically you have money going out (those that are retired or starting to retire) and money coming in (the working class).
The amount of baby boomers retiring is far outnumbering the number of people to put money into the system, so in order to try and keep it balanced, yes the government has lowered the payout and had to find other means to get money into the system. This is why social security was a hot topic of the 2004 election.
Its not going to get any better either. Its why I have invested in 401k as well as my wife. Its really the only safeguard, because to be honest, by the time i retire (im 24) we probably wont even have social security, and honestly your going to see the age of retirement shoot up exponentially when people realize that money isnt there. It will not be abnormal soon to see old people still working, its just a changing economy and lifestyle
2007-10-24 03:09:11 · answer #1 · answered by Anonymous · 3⤊ 0⤋
The government has been talking of lowering S.S. payments because of all the baby boomers retiring to make the S.S. fund last longer. People who are all ready and have been on S.S. will not have their payments lowered only the new people coming into S.S. if the government decides to do it. Medicare costs go up every year. The S.S. raise for 2008 is 2.3%. Don't know how much medicare will go up but it will take all or more of the 2.3%. People usually lose money . S.S. was started in 1936 or 37 and paid out the first benefits starting in 1940. The government doesn't care about "old people" we live in a desposable society.
2007-10-24 23:04:24 · answer #2 · answered by SandyO 5 · 1⤊ 0⤋
No, there will be a cost of living increase next year of 2% plus. Not sure of the exact amount. Truth is the COLA never matches the actual rise in the cost of living. So in this way every year they give the illusion of an increase, but in the real world it is a cut. Raising medicare is a good example of how it works.
2007-10-24 11:55:23 · answer #3 · answered by Ray T 5 · 5⤊ 0⤋
They are not lowering the amount...They are lowering the cost of living increase that comes every year. It is usually 3%, next year it is a little over 2%.
Why?
Because people who depend upon Social Security as the major part of their income are easy targets.
Because government has been yakking about how there won't be any left for the Boomers. (False).
Because Congress has to find the funds to support their own 15 -25% salary increase they vote themselves every year.
Because older people are easy to pick on.
Because nobody gives a crapola about it.
2007-10-24 13:13:05 · answer #4 · answered by Anonymous · 1⤊ 0⤋
Social Security is actually raised the payments about 2% only, but the amount taken out for Medicare will increase, so....no way to win.
I have the same problem myself. All of us on social security have to suffer this problem even though we have worked all our lives and had our money taken out for social security with each paycheck. It is not right.
Please don't believe the "rumor" that there will not be social security for the younger generation. It is a political rumor meant to put fear in us.
I hope this will help relieve your mother's anxiety. We receive a small increase each year, just not enough. My check this year was smaller than last year because they took out the Medicare. Have your mother check out the Department of Human Services. They may be able to help her, if her check is too small. She will be able to receive extra help and may be eligible for food stamps, etc.
Good luck to her. Just seek out all possible resources.
Love to you from a retired person on Social Security, having to pay for Medicare as well.
2007-10-24 11:21:40 · answer #5 · answered by makeitright 6 · 7⤊ 0⤋
Actually there's 'spose to be a raise in social security next year, but coupled with the raise in medicare payments -- it'll probably be a wash.
2007-10-24 12:43:43 · answer #6 · answered by Anonymous · 2⤊ 0⤋
Have you forgot the illegal immigrants might have apart in the money being spent out. Over the years the government tried to do something to protect S S and then they would also borrow from it. Also anyone born before 1921 was not allowed to draw as much as some one born after. I forgot the name they call it Notch baby. My father is one of them.
2007-10-24 19:43:58 · answer #7 · answered by Livelife 5 · 0⤊ 0⤋
The co-pays and deductibles are going up. If the retired person has a good medi-gap policy to pick-up those charges, they will be just fine. The premiums may increase a bit though but would probably be less than the Medicare co-pays and deductibles.
2007-10-24 10:21:30 · answer #8 · answered by Anonymous · 1⤊ 1⤋
Why now is it always the baby boomers fault. We paid into the system and now that it'd our turn to get back what we put into it people says it's us who are breaking the system.Maybe we should just go away and then every thing will be better I paid into the system all my working life now it's our fault the system is going broke that's a fine howdy duty.
2007-10-24 13:02:31 · answer #9 · answered by gggggg 6 · 2⤊ 0⤋
Your mom's SS payment will not be lowered....trust me...it is those in the future who will have lowered payments than we who began working eons ago and have begun to draw down.
Yes, the COLA will be very low this coming year....2.3% as I remember
Costs for newer enrollees in Medicare will raise to be certain
2007-10-24 10:23:25 · answer #10 · answered by sage seeker 7 · 6⤊ 0⤋