Social Security: No 2010 Increase?

Preliminary estimates indicate that Social Security recipients may not receive an annual increase, when payment figures are released for 2010.

Social Security payment increases are based on annual inflation. Currently, the federal formula for inflation reflects negative inflation for 2009, so there would not be an increase when the government decides on the 2010 change. It is possible that the government may evaluate this situation and make a change in the rules, as many of the real costs that recipients incur have increased. The major reason that the 2009 inflation factor is negative is the significant decline in the price of oil from 2008 to 2009.

This is a further update to a June, 2009 post, which predicted the same trend.

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