Show - I a The Herald Journal Logan Utah Sunday October 26 2003 -- rAip Social Security hike not enough to ease squeeze For couples checks will increase to an average of $1523 a month from $1492 But for many older Ameri- - ' cans part of the gain will be wiped out by a 135 percent hike in Medicare premiums that also takes effect next year Premiums will rise $790 a month to $6660 “They give with one hand and take with another” complained Abe Goldberg 72 a retired New York textile salesand clothes he said Though man who relies on Social ’ he’s not ill now rising drug Security and disability checks die Veterans Administrafrom scare him prices “It’s harder and harder to tion He’s also upset at the low pay for anything” said Thaw who lives on Social Security rates available on savings and a small pool of savings “That just have to increase the interest rates” Goldberg “I have to live very frugally” said “It’s like 1 percent and Frugality is the watchword that just isn’t enough” for many of the nation’s elderAbout of Amerily who survive on fixed incomes cans 65 and older count on Federal Reserve policies to Social Security for 90 percent interest low have or rates more of their income keep meant seniors are earning very according to David Certner little on savings in the bank director of federal affairs for accounts and money market the seniors’ advocacy group funds they tend to favor And AARP in Washington DC while inflation has been mod“That’s all they have so the erate for the past couple of adjustment becomes critical to them” years the prices of goods and services important to die Certner said He added that Social Securielderly — including medical care and fuel for home heating ty is about die only asset and cooling — have risen retirees have that has inflation rapidly protection If it weren’t there Social Security benefits r retirees’ spending power which are adjusted annually 'would be cut drastically over for inflation are tied to die time “It’s supercritical as people Department of Labor’s Consumer Price Index which cov-- : age and their other assets are os a range of products and being spent down” Certner ' services said v Last week die Social SecuThere are of course seniors around the nation who are rity Administration announced ' that beneficiaries will doing better because they get a ' ' have more resources includ- 21 percent increase next year providing ing pensions and company-pai- d health benefits an extra $19 a month for the McCanrion 85 a retiree Nellie typical retired University of Wiscon- -: For 2002 die increase was sin professor says a good pra- just 14 percent'1' 'V The latest adjustment will sion and savings have allowed raise the average monthly SV her to live comfortably and ' benefit for a single redree to continue to travel although she’s a careful spender : $922 from die current $903 mm NEW YORK (AP)— For seniors like Harry Thaw the planned 21 percent increase in Social Security benefits next year holds little promise of making life much easiet ' Thaw 78 a retired handy- man stops almost daily at the Encore Senior Crater in midtown Manhattan for the hot lunch which costs a dollar Every increase in die rent on his apartment means less for other things like food v ed one-thi- rd ' Liz SL cost-of-livi- ng incomes - ’ cost-of-livi- 1 - APptwtp lunch which costs a dollar at the Encore Senior Center at 21 in New York Frugality is the watchword for many of the nation's elderly who survive on fixed Encore Senior Center Below Alfonso Parron 78 left collects lunch tickets at the Garda left a culinary student arid Maladies Catholic Church on Oct Bill Swift center serve ed “I’m still a conservative person when it comes to buying things” she said “We grew up in the Depression We count pennies’’ But McCannon who has an apartment in the Wyndemere retirement community in Wheaton 111 said some of her senior acquaintances were 2 hurt financially by the bear market and low interest rates ' “Some people are going on fewer of our trips” she said “We’ve even had a couple move from two bedroom to one bedroom units to save money” Dallas Salisbury chief exec- -' utive of the Employee Benefit Research Institute in Washing- - dent on Social Security than those in higher income brack- ton DC said retirees are much more depen- - ets 2000-200- ' ar ' accorttihgtobankratecom “The Federal Reserve lias been able to control interest rates but it hasn’t fully man- ' aged to do away with infla-tion” he said - low-inco- : 65 and older but 90 percent of the income of the poorest retirees The rest is made up of pensions and annuities personal savings and income from jobs Salisbury noted that next year's Social Security infla- tion adjustment of 2 1 percent is higher than current interest rates on savings accounts Tlic certificates of rate on one-yedeposit currently averages 1 56 percent nationwide On the Net: Social Security benefits' account for 42 percent of the income of the average retiree wwwaarporg wwwabriorg WELLS v FARGO The Next Stage f Life is full of big questions doesn't have to be one of them Home equity financing that's right for you from Wells Fargo What could be better than a home eqQity line of credit rate of only 399? 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