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Tuesday, October 31, 2006

Social Security cost of living increases

The recent reports that have reported that on Jan. 1st the increases will go to 3.3% which doesnt seem to be a big increase but retirees will on average get only $33 and couples $55. The big key to the increase in the cost of living is tied into the consumer price index and this will contiune to go up each year which appears to be a going in the wrong direction for future generations. For the future generations with most of the income that one will be living off comes from savings, pensions, and investment it comes very crucial that for the future generations we are going to have to make sure that we save more. When most retire and become no longer a productive member of the economy it will become imparitive that we save and invest at an early age to keep afloat after retirement. There are new programs out there that are offering a lifetime income protection, which can be described as the opposite of life insurance. With the lies of the current social security system or OASDI the future generations will not have the luxury of having government use there coersive power to get the social security problems fixed. In the report it is described as the on -your-own retirement plan, with implies that we must start looking at the investing, pensions, and saving money now. With the age in that people are tending to live to going up the amount of money that will be needed to be saved will have to increase. This may lead most people to start thinking about staying a productive member of the economy for a longer period of time and not retire. The report makes it very clear that the with the cost of living being tied into the consumer price index and the inflation rate continuing to creep up the dollar will continue to be worth less which means we will have to save more. Think about the future now or pay for it later.

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