By Kristine J. Witherow
Did you realize that 2009 is the first year that more money will be paid out of Social Security than collected? Many years ago, the Social Security system had a surplus until the government took the money out in exchange for IOU’s, which have never been repaid. Adding to the current economic strain of Social Security has been the increase in unemployment, resulting in less dollars being paid into the system. Additionally, individuals who had chosen to work past retirement age had been forgoing Social Security. But, because of the economic downturn, some of these individuals have found themselves unemployed and have signed up for Social Security before they had planned on doing so.For the first time ever, individuals collecting Social Security in 2010 and 2011 will NOT receive a cost-of-living-adjustment (COLA). Their benefit will not be decreased, but the amount that they’ll end up with will be less, due to their Medicare Part B cost increasing.
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