Social Security Checks to Shrink?

Since 1975, Social Security has been adjusted each year for the cost of living. However, due to negative inflation this year, it is very unlikely that there will be any adjustment for next year.

For those who automatically get their Medicare prescription premium deducted from their check, that could mean smaller Social Security checks next year since premiums are expected to raise slightly. If all of this comes to fruition, these difficult economic times might become even more difficult for many Americans who depend on Social Security.

Many groups have spoken out against the lack of a forthcoming cost of living adjustment for Social Security, however there doesn’t appear to be much movement on the topic. Shrinking Social Security checks will likely become a reality in 2010.

If you are living on Social Security, don’t count on receiving any more money. In fact, some analysts believe it won’t be until 2012 until we see another cost of living adjustment. So, with that in mind, stay on a budget and cut corners where you can.

Social Security Check (Image: Flickr)