Many retirees lost much of their savings when the stock market collapsed. They lost value in their homes when the housing market crashed, and they can not find work because the job market is weak or they are in poor health. Many baby boomers now must rely exclusively on Social Security.
In 2009 and in 2010, under the leadership of the current Obama Administration and Congress, the Social Security Administration cut the cost of living allowance (COLA) on Social Security benefits for the first time since 1975. Andrew Biggs, a former deputy commissioner of the Social Security Administration who is now a resident scholar at the American Enterprise Institute (AEI), was quoted by the Associated Press as saying, “older people might feel they are falling behind because they haven’t had a raise since 2009, but many are benefiting. Consumer prices dropped, but Social Security benefits didn’t drop. At the same time, health care costs went up, but Part B premiums stayed the same for most beneficiaries. They are better off. Somebody else is paying for a greater share of their healthcare. This will get me hate mail, obviously. But it is what it is.”
Biggs’ comments remind me of the fox who guards the hen house. Baby boomers, who are facing retirement and depending on Social Security, have the assurance of a former Social Security Administrator who now works for a lobbying group whose primary focus is on promoting private enterprise, democratic capitalism, and limited government, all of which can have an adverse affect on public benefits. Biggs states that consumer prices are dropping and Part B premiums stayed the same. Those statements are misleading at best and totally false at worse.
With incomes remaining the same and the cost of living increasing, retirees or the semi-retired (like myself) have a harder time paying our cost of living expenses every year, and when expenses exceed your income, you will financially sink. If baby boomers start going under, bankruptcies will soar.
As a matter of fact, bankruptcies have been soaring since the Great Recession of 2008. Bankruptcy cases filed in federal courts for fiscal year 2010, the 12-month period ending September 30, totaled 1,596,355 and were up 13.8% over the total for 2009 when bankruptcy filings totaled 1,402,816 (according to statistics released by the Administrative Office of the U.S. Courts). This is the highest number of non-business filings for a fiscal year since 2005, immediately prior to the implementation of the Bankruptcy Abuse Prevention and Consumer Protection Act.
If you are facing a financial crisis, you may have contemplated filing for bankruptcy. Bankruptcy laws can be complicated, and you might need a bankruptcy lawyer to help you understand how these complex laws may apply to your financial situation. If you need relief from the stress of debt and you live in or around the metropolitan area of Jersey City, New Jersey, contact us today at www.betterbankruptcy.com . We will help you find a bankruptcy attorney in your who can answer your bankruptcy questions.
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