Social Security Freeze: Time to Scrimp

With No Annual Raise Due to Negative Inflation, Seniors on Fixed Income Take Thrift to Heart

(AP)  If her check were bigger, 76-year-old Agnes Conti might be able to spring for a better cut of meat for her pot roast. She could afford to send her nine grandchildren more than $20 for their birthdays and Christmas. She'd be able to buy some nice new clothes, like she sees on QVC, not what she settles for at Walmart.

If only. The government has said the Social Security checks Conti and tens of millions of other seniors rely on as their primary source of income will not increase next year as consumer prices have fallen overall. And while the retired hospital clerk will get by, she'll be watching her spending even closer, knowing she can't expect the annual raise she's been accustomed to.

"We were good citizens all our lives. We went to work, we lived by the book, we weren't on welfare, we didn't ask the city for anything," Conti said while taking a break from crafts at a senior center here. "And what do we get?"

At the Southwest Focal Point Senior Center in this Fort Lauderdale suburb, seniors lamented the cost-of-living freeze and praised a White House plan for $250 checks to soften the blow. But they took all of the news in stride, saying they've had a lifetime of experience living on a fixed income and would manage with the money they currently receive.

Frank Ferreira sits in the center's lobby, near a decorative fireplace and an autumn centerpiece. The 90-year-old retired truck driver loves to sing, even practicing on a karaoke machine at home, and loves to dance even more. He gets about $890 a month from Social Security, most of which he hands over to his daughter to help pay his share of the bills.

The money isn't the biggest issue, Ferreira said. It's the message the government is sending about caring for seniors.

"I could use a little more, but that's all right, I get along," he said. "But I think that we deserve it, the elderly. You can't just discard them. You've got to help them."

Nearby, 89-year-old Miriam Danzinger is shuffling along with a walker. She gets about $1,300 monthly in Social Security, and after rent and other expenses, including a MediGap plan, she has little to spare. Her daughter helps pay her bills.

When her Chevrolet Cavalier broke down a few months back, Danzinger was forced to give it up. When she goes to the store, she's thrifty, having learned how to cut grocery costs when she ran a coffee shop. She lives as simply as possible.

"Listen, there's no money. People are going hungry," she said. "But what can I say? I'm only a little ant."

The freeze in next year's checks is the first since automatic Social Security cost-of-living increases were adopted in 1975, and follows a 5.8 percent increase in January, the largest since 1982. By law, the adjustments are pegged to inflation, which is negative this year because of lower energy costs.

The Obama administration plan to send $250 stimulus payments to about 57 million seniors, veterans, retired railroad workers and people with disabilities, would amount to a roughly 2 percent raise for the average Social Security recipient. If approved, the checks would cost about $13 billion, though there is no plan yet how to finance them.

While seniors here have grown used to the annual raises, many of them said they're willing to cut the government some slack given the recession and the federal deficit.

"When they have the money, they give us the raise. If they don't have it, they don't have it," said Lucy Polieto, a retired waitress who lives in Southwest Ranches. She wears a glittery gold sweater and chains around her neck, and walks with a spry bounce that belies her 94 years. "Sometimes, I'm so surprised when I look at the check and I get a raise."

The news this week that checks would be stagnant is buffered by some positives: Seniors won't be getting any less than they already do, most recipients' Medicare part B premiums will freeze as well, and the president's plan could soften the blow. But because the one-time stimulus payments won't be a lifetime raise, it means many seniors will never see what amounts to thousands of dollars.

For those in poverty, the raise could have made a huge difference. But for the average senior simply living on a fixed income, it is seen less in dollars and cents, and more in the tangible costs they might be more careful with.

Polieto cooks eggplant, chicken cacciatori and pasta fazool. A raise could have given her more leeway with her grocery bill.

"Then I could buy some steaks, maybe," she said. "But I'd rather have a pork chop."

[rsco]

I wonder if our self serving politicians are going to vote themselves a raise this year? I bet they do.

[rsco]

I wonder if our self serving politicians are going to vote themselves a raise this year? I bet they do.

[Sybll]

If the check were bigger, the person on SS could afford a better cut of beef for her pot roast?! I work full time and make a good salary and I cannot affort to buy beef for pot roast! I don't mean to sound crass, but can't this woman eat hamburger?

[msw1066]

Your absolutely correct. I am a senior and if I had gotten a 2% raise I would have received $20.00 more a month which comes to $240 a year. We alread rec'd $250 so I figured I got my raise. I managed to save a bit in an IRA, but it is still difficult.
But this my second Depression I was born during the first one.
I think that was pretty bad on my parents, and they made it without
Social Security.

[lorajeantn]

Wait a minute. If I'm reading this correctly, all that's happening is that there will be no increase for the time being. Nobody is reducing SS checks, right? So grandma will have the same amount of money to spend tomorrow as she did yesterday and today, correct? What's the big deal? Very few people are getting raises right now, we all have to tighten our belts, and at least they have health care benefits, unlike many who make less....

[mollydtt]

If the seniors think this is bad, just imagine what it would be like if they are from my generation. There won't be any social security left. I'm planning on working until I die.
P.S. I live in Texas, so paying off my mortgage didn't help much. We don't have state personal income tax, so everything is funded from property taxes. Trust me, you can't afford to own property in Texas these days unless you are rich. There is no such thing as appraisals going down---only up.

[mypatch]

you need to sell the house and get a better job. Don't worry the SS system will be there when you retire but like all else the gov'mt will cut it to shreds so you won't have as much. I'm collecting less than my parents did.

[mary-miami]

I feel sorry for all the old folks, but you know what? There are people making a minimum wage, who can barely aford to pay their rents, bills and eat...What the senior citizens are going through is the same as the "working poor"...When a working class person retires, they start getting a check that is the same as a minimum wage earner, however, they are not "laid off" so they can count on getting at least $600 a month. The problem is that usually the "retired" person has to get a part time job to make ends meet. It shouldn't have to be this way. Also, People getting unemployment checks are only getting a percent of their old salary, so it could be even less than a retirement check. How is it that other industrialized, free countries can provide for their senior citizens to live worry free, and the U.S. can't? Simple, they have more "socialized" ideologies and have "patriotism"...What benefits one American, benefits the nation" The Bush-republicans destroyed the American economy.

www.marymiami.wordpress.com

[AOCGUY]

billpl-2009 - folks receiving social security didn't improperly fund SSAN. Past administrations robbed the trust fund to pay for othr projetcs. These people paid into the fund and it is their money they are pulling out. Noboby is robbing the young so get over yourself - and no I'm not on social security yet but I probably will be before you which means I have paid more into he system than you have.

That said, no pay raise this year is appropriate as the inflation index was negative.

[billpl-2009]

old people....

years ago they vote themselves SS for their retirement

but don't fund it properly

now they demand more money

they hide behind the thugs at AARP

so they can rob from the young and the poor

....KMA grannie!

[dontknowitall]

billpl-2009 You don't have a clue do you. Social Security funds would be in fine shape had it not been for the crooks in Congress that helped themselves to the funds available at the time. They had and still have NO regard to the American people. Most of the law abiding legal citizens have paid into SS for 50 -60 years and deserve what they get. Furthermore it should have been understood by the seniors that the pay raise last year in SS was to compensate for this year. As for raise

[mypatch]

What are you talking about? We all paid into this system-and there would be plenty of money for us retirees if the govt hadn't stolen half the money in the system that we paid for. They can give billions to the big banks but can't afford to give us anything and you hard workers are going to pay for that one.

[hornsnbr1]

"Negative Inflation" is deflation. Liberal press refuses to use the term because an extended period of deflation is a depression. Wouldn't want to scare the citizens while our "lord and savior" Obama is Prez.

[Lawyers-Guns-n-Money-01]

No more money for you, you old bitty. Hope you learn how to subsist on a diet of catfood, rain water and grass clippings.

[mypatch]

stop blaming one party and OPEN your eyes to the truth. It took years to get here again and we let it happen with our greed. Both parties hold a guilt in this and we do to. Check your past and the good book all nations will fall without God. Who cares about the stupid raise? I for one will do just fine. I'm a survivor.

[rmsacs]

where in the world do you people live. gasoline,water,home gas electric,cable,food,insurance,medicine and just about everything else has gone up, so where do you come up with the notion that the cost of living has went down. numbers can be made to look like what ever you want them to look like. the only thing that counts is what we are spending and we are spending more.

[mypatch]

The govt doesn't include food, energy in the coa. So that only leaves tangible items. They base there findings on big business results. If we are not buying the big stereos and TV's then there is no inflation.

[sotiredofitall]

If the Government hasen't the money for an increase where are they coming up with the money to convert old motels & hotels into living quarters for the illegal immigrants? As always the people that work and save are told, not asked, to sacrifice for those that do nothing for themselves. As far as those that say the seniors don't deserve it I dissagree. They have worked all of their lives and in most cases can't anymore and if they can are told that they are only allowed to make a certain amount. You are lucky that you are young enough to find another job. Their are jobs out there. It may not be what you want but it is a job.

[veritas_1212]

presjfk writes: "Smart seniors will leave the country."

Prices have gone DOWN, while SS payments have not. And we're supposed to think this is somehow a hardship for seniors ? Huh ? Think, people, THINK.

[Biggest_Rick]

We have negative inflation on prices, but not necessarily on taxes. A lot of people have been hit with higher property and sales taxes as states caught in the recession have raised taxes to make ends meet. Furthermore, not all prices are static. While prices on durable goods have remained stable, prices on food and gasoline have fluctuated. It is tougher on some senors than others. A lot of how people do in their retirement years depends on whether they have pensions and other incomes as well as savings.

[maypo]

I'm on Social Security and making less than any of those mentioned in the article. I don't see this as a hardship of any sort. We all would like more money, no matter what our income. Thats just human nature. I'll get by just fine.

[triket63]

And so will we; we learned the difference between wants and needs and grew up in an age when 'you made do'and were happier than most today.

[mypatch]

Who are you pigsinlipstick,? sounds to me like you have an anger issue. Stop typing in caps. we can read.

[saturn05]

I am truly sorry for the seniors, but....I have been laid-off twice with the State of Oregon and I am lucky enough to be still be working with the state, but I have have no cost-of-living increases for two years and with our new contract it will be another two years without the increase. I cannot move up in what we call steps, they have been frozen and I have to take 6 furlough days a year which equals a 3.077% decrease in my salary. I feel sorry for myself I hate to say. And please don't tell me I should feel lucky tohave a job. That is a bunch of c***. I have worked hard since I was 14 and I am now 50, so I deserve to be part of the workforce and I expect not be stabbed in the back while AIG and the rest of the criminals are already planning their next round of bonuses.

[triket63]

Don't be sorry for us; we made it thus far with more ups and downs greater than I can count. We'll be fine. You are learning now what we have already been through..take care.

[presjfk]

Where is my pay raise, government bailout, loan modification, cost of living increase, rebates, tax credit, one time payment and sobbing political commentators regards my financial demise??? Everyone is getting a handout from the government but me and I am mad as hell.

[displeased]

The woman has to eat chicken instead of pork? My god, that is awful! It's nice to see many of the seniors are understanding, being we are in a recession. I work for the state and haven't received a cost of living raise for two years due to recession and budget cuts. Although a raise would be nice, I'm thankful I still have my job and get what I get.

[presjfk]

You are right to be thankful because only government employees have any job stability and retirement options. It is only a mater of time before you get pay raises too.

[6591Hou]

Automatic increases can be a bad idea if people don't know the mechanisms they are tied to, people get used to them and start depending on them and then feel entitled to them - and when the mechanism doesn't produce an increase we get news stories like this one where the politicians want to circumvent the system and give out something which is outside the system.

[presjfk]

For $%^& sake, what the hell? The COLA is down, the cost of everything has gone down, inflation is down, in other words, THE COST OF LIVING HAS GONE DOWN! The system has a built in gauge to increase payments to seniors when the cost of living goes up. WELL IT DID NOT GO UP SO THERE SHOULD BE NO INCREASE.

[jimmyc1955]

WHAT ARE YOU TALKKING ABOUT?? Cost of living has not gone down - it goes up every month. Inflation exists. Basic costs rose 0.2% last month. If you extend that over a year that is a 6% increase in the cost of living. So I don't know where you get your data but I think the government disaree with you.

http://biz.yahoo.com/c/e.html

Core CPI - Consumer Price Index. Been up every month this year.

[chell75]

This is the biggest bunch of washington bull crap that there is right now other than the health care bull crap. Our wonderful government pays for murderers and rapist to have three hots and a cot, but won't help their own, their own meaning the people that got them into government, their teachers, friends mothers, friends fathers, etc. But why should they give a *^*^%&*^ they can afford to eat and pay their bills, to hell with the little people!!!

[Sharonkathleen]

Social Security is based on inflation. There wasn't any inflation this past year so therefore we aren't getting a raise. It's just that simple. Has nothing to do with anything Congress recently voted on.