Social security benefits are indexed to inflation. Would my benefit be reduced if we have negative inflation?
July 31st, 2008 | by security |
Johnson asked:
I am currently receiving social security benefits. If we have negative inflation in 2009, would my benefit be reduced in 2010?
Can you give me a reference to support your answer or a description of your qualifications to answer it. I don’t just want an opinion. Thanks.
FELTON
I am currently receiving social security benefits. If we have negative inflation in 2009, would my benefit be reduced in 2010?
Can you give me a reference to support your answer or a description of your qualifications to answer it. I don’t just want an opinion. Thanks.
FELTON
4 Responses to “Social security benefits are indexed to inflation. Would my benefit be reduced if we have negative inflation?”
By src50 on Aug 2, 2008 | Reply
They are indexed to the CPI, I believe.
By quizzard123 on Aug 4, 2008 | Reply
Theoretically, yes, since it is indexed to the CPI. If consumer prices fall, then in theory the SS will fall.
But it is very unlikely that we will see deflation on any noticable scale.
By Jack of Trades on Aug 6, 2008 | Reply
If they can find a way to keep our money, they will. What I’m saying is that no matter what the law says now, they could change it.
By the time I collect any benefits the amount will have been reduced just to keep the system from folding.
By ssadviceonline on Aug 8, 2008 | Reply
No! Social Security would not reduce your check. You would just not receive a cost of living increase and I have never seen that happen. Here are the COLAs back 2000 to present:
Year COLA
2000 3.5
2001 2.6
2002 1.4
2003 2.1
2004 2.7
2005 4.1
2006 3.3
2007 2.3
2008 5.8