Seniors wary over Social Security changes

By Maria Prato-Gaines, Staff Writer
Centraljersey.com
September 10, 2009

Monroe, NJ - Fixed income seniors may have to pinch their pennies a little tighter next year as experts around the country are projecting cuts in Social Security benefits.

Experts are warning the public that Social Security's cost of living adjustment will be set at $0 for 2010 and possibly 2011, while medical premiums are expected to increase.

There hasn't been a no-increase COLA in more than three decades, according to an article on dailyfinance.com.

"(But the reason is) the pronounced recession in the United States, which has created pricing pressure - not pricing power - for businesses," the May 8 article states. "Pricing power is so weak for firms that the Federal Reserve believes the nation is more likely to experience a bout of deflation - not inflation - at least through mid-2010, and perhaps for a longer period.

But not all local senior citizens are buying into the explanation.
"They say they aren't getting a cost of living because there's no cost of inflation," said Elaine Einstein, a Monroe resident and senior citizen. "Are they kidding?"

The increase in medical premiums will affect everything from doctor visits, to tests and outpatient hospital care, to prescription drugs and Medicare Advantage.

Statistics on the affected senior population aren't reassuring, either. According to a recent press release from the Senior Citizens League, one in seven seniors, approximately seven million people, will be affected by these changes.

"I hear it all the time. Seniors are really hurting," said Janet Kittstein, a volunteer at the Monroe Senior Center. "They come in here crying because they can't pay their phone bills. In a lot of the senior communities they can't even open their windows - they can't pay for the heating bills."

Ms. Kittstein, also a Social Security recipient, said if she has to curb more spending in her home budget, she'll completely stop eating out, her already infrequent shopping ventures and possibly volunteering as gas prices have seen a recent spike.

"They're taking everything away from seniors, people that made this country great, and now they have nothing to look forward to except going downhill," she said. "It's a disgrace."

One senior citizen is expecting a double blow from the projected Social Security cuts.

Ethel Feld and her husband, Raymond, not only draw some of their income from Social Security, but also help supplement their disabled son's income. He also depends on these funds to survive.

"I don't know if it amounts to that much," Ms. Feld said. "But I'm not happy about it."

Tightening their belts, the Felds already have skimped on travelling and trips to New York, she said.

But if their family continues to lose income, Ms. Feld said she and her husband may have to monitor their spending even more closely, cutting back on shopping, specialty food items and even charitable donations.

"Is there anything that can be done, so that they don't have to delete the COLA?" she asked.

The Senior Citizens League seems to think so, according to a national petition that the organization has been circulating online.

Collecting more than 4,000 signatures so far, the league addresses President Barack Obama, offering a list of suggestions that legislators might consider instead of the proposed Social Security cut.

Those suggestions include denying Social Security and Medicare benefits to illegal immigrants, controlling government spending, putting Social Security tax revenue in a lock box, creating a more accurate COLA representation for seniors, controlling the rapid growth of Medicare premiums, allowing reimportation of prescription drugs from Canada and requiring that Congress and President Obama have the same retirement and Medicare benefits as the average citizen.
For more information on the petition log on to www.seniorsleague.org.

http://www.centraljersey.com/articles/2009/09/11/cranbury_press/news/doc4a9fe925d1c8e196519267.txt