We already know that Social Security is in serious trouble but when the Social Security Trustees begin releasing news that there will be NO Cost of Living Adjustments in 2010, you have to wonder if the end is closer than we realize.
Indicators like that are akin to employers saying no more overtime or pay raises are frozen. It’s usually what happens right before the employer informs everyone of mass layoffs. You simply don’t come out with major bad news at one moment in time.
This will be the first time that the SSA has not provided a cost of living adjustment in 35 years. The Associated Press reports that the COLA will not occur because it is pegged to inflation and inflation was negative due to a reduction in energy costs in 2008.
But the AP report makes no mention of the anticipated dramatic increase of inflation due to the US Treasury printing up and flooding the market with greenbacks.
Watch for this to be a major issue in the 2010 mid-term elections. You can bet this will not sit well with seniors who have paid into the system all their life.
A final note. This is a great example of why individuals should plan for their own future and not rely on the federal government to be there to bail them out. I solidly endorse the growing movement to “Opt Out” of dependency on the government. It’s no longer a matter of “if” but “when.”