Social Security Payments Could Freeze at Current Levels

May 06, 2009

By Alana Rocha

(EL DORADO, Kan.)

You pay into it every month, for years. Soon Social Security alone may not even afford you the basics.

Nearly 51 million Americans collect the benefit and count on a slight cost of a living increase every year. A bad ecomony could mean that goes away.

Thirty-two million of those are seniors just trying to get by after retirement.

"I have to rely on it most of the time," Beulah Jones said.

But fellow retiree Erma King admits she doesn't, "depend on it [social security] too much, but it helps."

Yes, that monthly check from Social Security means more to some Americans than others.

But financial forecasters are predicting everyone should plan to bank on less.

Jones says, "Congress, Senate they raise their pay so why don't they raise ours."

The Congressional Budget Office estimates inflation for next year will be too low to trigger a cost of living increase for Social Security.

Preliminary Budget Analysis

Many seniors making the rounds at a Resource Fair in El Dorado Wednesday say they're not ready to make do with less.

"I'm trying, but expenses and everything," Jones said.

The stability and fate of Social Security are on the minds of the millions currently collecting the benefit and those who are years away from retirement.

"I feel almost cheated. You put it in for so long, hope to use it down the line. I don't know if it's going to be that way," Joshua Vargo said.

At 27, Vargo admits he's decades away from retirement. But like many people we talked to Wednesday, he doesn't have much faith Social Security is a resource anyone will be able to count on much longer.

Vargo says, "I don't know. It's hard to be optimistic these days, but it would be nice."

"I'm sure it won't at the rate they're going," Jones said.

Tuesday the trustees for both Social Security and Medicare release their report offering their financial outlook for the programs.

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