Skip navigation. Stanley Iola LLP

Posts Tagged ‘AARP’

Social Security Benefits to Rise After First Pause Ever

Thursday, October 27th, 2011

Recipients of Social Security retirement benefits and Supplemental Security Income (“SSI”) benefits are set to receive news that they have not heard for two years – their benefit levels will be going up. A yearly increase in benefits had been the norm, at least from 1975 until 2010. 2010 and 2011 were the first consecutive years for which there was no cost of living adjustment (“COLA”). More details on the change are available from a Tulsa SSI attorney.

The lack of increase stems from the way that the Social Security Administration (“SSA”) measures the cost of living. It uses the consumer price index to measure inflation by looking at the costs of consumer goods. Social Security benefits cannot, by law, go down, so when the consumer price index goes down or stays flat, benefits stay the same. The index actually fell in 2010, and prices did not exceed their previous high until recently.

At least one problem with using the consumer price index for Social Security benefits is that it overlooks what many older Americans and disabled Americans purchase. They spend more on health care goods and services than other Americans. Health care costs rise much faster than other costs, so the consumer price index is not always a good gauge of how far a dollar goes for everyone.

Financial experts expect that the COLA will be between 3.5 and 3.7 percent and will factor into benefits starting in January 2012. This could mean a lot for many beneficiaries – an AARP spokesperson noted that Social Security keeps a third of older Americans out of poverty. How much will the increase in Social Security benefits affect your financial situation?

Troutman & Troutman, P.C. – Tulsa Social Security disability lawyers

AARP Change on Social Security Reform Shocks Many

Monday, June 27th, 2011

In a dramatic change that could affect Social Security reform and anyone who receives various Social Security benefits, the American Association of Retired Persons (now known as “AARP”) altered its position on changes to benefits. The AARP is one of the most important lobbying groups in Washington, D.C. Legal advice concerning how changes to Social Security law will impact benefits is available from a Tulsa Social Security disability lawyer.

AARP leaders said that, despite knowing that it will upset many of the group’s members, AARP is prepared to accept cuts to Social Security benefits. This is in stark contrast to AARP’s stance in the past. The organization had worked vigorously to oppose even the slightest suggested cuts to Social Security benefits. The enormous financial difficulties facing the Social Security system prompted the change.

AARP’s leaders said that they would accept slight, gradual changes. The changes would have to come with a “great deal of lead time,” according to its legislative policy director. In this way, cuts to Social Security benefits would not impact people who are currently retired or who are close to retirement.

The change in strategy signals the tough times ahead for Social Security. It also signals the uncertainty of the types and amount of benefits that will be available to future Social Security beneficiaries, whether they receive retirement or disability benefits. Applicants for Social Security disability benefits may wish to speak to a Tulsa Social Security disability attorney about forthcoming changes.