Social Security Increase

Each year in October, the Social Security Administration announces its annual cost-of-living increases for the following year. It is expected that next month the SSA will announce a 2.8% increase, which is the highest increase in recent years. However, there are factors that may affect the projected increase, including the recent hurricanes.

According to Mary Johnson, Social Security and Medicare policy analyst at The Senior Citizens League, “There is a chance it could be slightly lower than 2.8 [percent] and that’s complicated by hurricanes,” Johnson said. Johnson states the 12-month average inflation rate has been trending down. However, hurricanes tend to drive up costs, and therefore the cost-of-living adjustment. Many anticipate those two forces will likely cancel each other out, which will make the 2.8% increase a realistic estimate.

While there have been social security increases in recent years, many retirees have not actually seen the benefits of those increases due to rising costs of Medicare. Medicare premiums have risen, and are automatically deducted from social security checks. This may be the first year that retirees actually feel and see the benefits of an increase.

The average social security benefit is $1400 per month. This translates to a monthly increase of $39.00 per month. If you are struggling to pay off debt on your fixed income, call your Fairfield bankruptcy attorney at (707) 385-0422.