Some Good News for Retirees

The 2009 Social Security benefits of our nation’s older Americans are slated to receive a 5.8% boost—the largest hike in 26 years. That compares to the 2008 increase of only 2.3%. In 2008, the average monthly Social Security payment for retirees amounted to $1,090. That will increase to $1,153 in January.

Another positive for retirees is the announcement that 2009 standard Medicare premiums will remain unchanged. However, premiums do increase for “higher income” individuals (defined as singles earning more than $85,000 and couples earning more than $170,000).

This development provides welcome positive news in light of recent price inflation in food and energy and the severe erosion of most retirement accounts. In addition, escalating health care costs in recent years have resulted in many retirees struggling to maintain their standards of living. More recently, the financial crisis and recessionary economy have left those dependent on fixed incomes amongst the hardest hit.