The news has hit the stands, no cost of living adjustment coming for retirees in 2010. In 2009, 5.8% increase in the social security check to cover the cost of everything from food to gasoline.
For 2010, 0%. What gives?
Well, fuel prices a year ago were flirting with $4 a gallon, now down to $2.50. So, theory being that prices have come down and therefore no additional money is needed.
Are prescription drugs any cheaper? Insurance any cheaper? Has everyone recovered from their 401ks being impacted by the market?
If economic stimulus is the goal of the government, it would seem that keeping some level of increase in place for cost of living adjustment gives much needed confidence and cash to those that are very much likely to spend the money, retirees.