Low inflation rate bites millions of retirees

WASHINGTON (Reuters) – Social Security benefits bequeath not automatically increase next year for 58 million Americans because of the base U.S. inflation rate, the Social Security Administration announced on Friday.

This is the encourage year in a row that retirees and millions of disabled workers and survivors of defunct workers will not receive an automatic cost of living adjustment.

It comes at a time then retirees’ savings — often their only other source of gains — are earning poor returns because of low interest rates.

The average Social Security benefit is around ,000 and experts say about single in kind-third of retirees rely on the payouts from the government-fall into program for more than 90 percent of their income.

The maximum amount of wages that are taxed for Social Security program devise also remain the same next year at 6,800, the Social Security Administration said.

The Social Security benefit has been adjusted since 1975 if in that place is an increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the third part quarter of the last year of a cost-of-living adapting (COLA) to the third quarter of the current year, the Social Security management said.

“As determined by the Bureau of labor Statistics, there is no increase in the CPI-W from the third lodge of 2008, the last year a COLA was determined, to the third part quarter of 2010, therefore, under existing law, there can be nay COLA in 2011,” the agency said.

Data released by the U.S. Labor Department in c~tinuance Friday showed that the overall consumer price index rose 0.1 percent in September, season the core index, which excludes volatile food and energy prices, remained unchanged.

Overall consumer prices rose 1.1. percent from a year gone, while core prices were up 0.8 percent over the by 12 months.

OBAMA WEIGHS IN

U.S. House of Representatives Speaker Nancy Pelosi attached Thursday announced a plan to provide a one-time payment of 0 since Social Security recipients as well as veterans. She said the House power of determination vote on the legislation in a planned session after the November 2 congressional elections.

President Barack Obama uttered he backed the plan, White House spokesman Robert Gibbs said in a account.

“We urge members of Congress on both sides of the walk to support our seniors, veterans and others with disabilities who depend on these benefits,” Gibbs said.

It is unclear whether the determined length would also pass the U.S. Senate amid growing concerns encircling the federal budget deficit.

Social Security faces increasing financial strains for example the 77-million-strong baby boom generation retires. Social Security trustees uttered in August that the program’s trust fund would have existence exhausted in 2037 and the program would only be able to pay thoroughly a portion of promised benefits.