Social Security Administration Says No Cost of Living Adjustment in 2011

There will be no cost-of-living adjustment in Social Security payments for 2011, the second straight year without an increase.

The Social Security Administration said today that inflation is too low to justify a boost. The decision will affect more than 58 million retirees and disabled Americans.

"We're a little bit upset because our bills are going up and our Social Security isn't," Betty Dizik of Tamarac, Fla., told the AP.

Dizik, a retired tax preparer and social worker, said her only income is a $1,200 monthly payment from Social Security.

"Seniors who rely on their modest Social Security payments need these cost-of-living-adjustments for their day-to-day survival," said Rep. Earl Pomeroy (D., N.D.) said Thursday, according to The Wall Street Journal.

The House is expected to vote next month on a bill to provide an extra $250 payment. Still, even if the House passes the bill, it will likely face opposition in the Senate.

Increase your money and finance knowledge from home

Introduction to Preferred Shares

Learn the difference between preferred and common shares.

View Course »

Banking Services 101

Understand your bank's services, and how to get the most from them

View Course »