Update: The Social Security Administration announced a 2% cost of living adjustment (COLA) for Social Security recipients for 2018.
The bad news is that inflation is rising. The good news is that retirees might finally get a decent Social Security increase in 2018.
Although the official announcement about the Social Security COLA won’t be until October, based on inflation data so far this year, retirees could receive an increase in benefits of approximately 2 to 2.2 percent.
This is good news as recent Social Security increases have been minimal. In the last 10 years, the average COLA has been 1.56%. The increase for 2017 was a measely 0.3% and there were three years in the last decade where Social Security recipients received no increase in benefits.
According to The Senior Citizens League, seniors have lost almost a third of their buying power since 2000 as costs that retirees typically have (such as housing, food and health care) have outpaced the Social Security increases they have received.
For the majority of Social Security recipients, their benefits make up 50 percent of their total income. A third of the people who receive Social Security say their benefits make up 90 percent of their income. For these people its crucial that Social Security increases keep up with the rising costs of health care, food and housing.
Related Articles:
Social Security COLA Not Keeping Up with Retiree Costs
One of the biggest benefits of Social Security has been the annual cost of living adjustment to help senior’s income keep up with rising costs. Unfortunately, the COLA is calculated based on the CPI-W, which focuses more on the expenses of workers. A better measure would be the CPI-E, or the Consumer Price Index for the Elderly. This index gives heavier weight to housing costs, which are typically a much greater percentage of a retiree’s budget.
Should Seniors Get a One-Time Payment to Make Up for the Small Social Security 2017 COLA?
After the SSA announced there would not be a COLA for 2016, a bill was introduced in Congress that would provide a one-time payment to Social Security recipients. It didn’t pass at time; however, it was reintroduced after the low (0.3%) 2017 COLA was announced. The bill called for a payment of $581 for all Social Security recipients to make up for the low COLAs in the last few years. Unfortunately, this was right before the presidential election and has not been followed up on since.
Read more about the proposed one-time payment…
Getting the Maximum Social Security Benefits
Since Social Security makes up a large portion of retirees’ income, it’s important to maximize your benefit as much as possible. Some ways to do this include maximizing your earnings before you retire, working longer, delaying your benefits, and taking advantage of spousal benefits.
Click here to learn more about how to maximize your retirement benefits…
Dorothea A Wilson says
Amen, it’s about time.
stephen. F. Flanders says
To whom it may concern
That’s good news hope it is true We can use it
Thank you
Stephen. F. Flanders
Maxine Wahholz says
Give us 5% or a separate check for our losses the last 8 years, please.
Carmen Collado says
About time last year I didn’t get the increase I was supposed to get. Hope everything is true
Gloria says
Good news in a way.
I want to know how much they will take back by increasing Medicare.
I’ve already been informed my supplement ins is going up $20 so I’ll be no further ahead. Most likely won’t break even.
Helen says
I am 87 and live strictly on SS, my deceased husband and I both worked hard all our lives and I think that The Obama Administration has done the elderly a terrible wrong. Some of you people need to go to the grocery stores and do some pricing, then see what it is like to live on what we get.
Dee Finken says
For many of us SS is 100 percent of our monthly income. When you’ve had a catastrophotic illness and are over 80 and rent takes half your SS check what’s left for health ins and needs plus food? Zero! Groceries have gone sky high. A box of store brandjello is $1.08? Can’t remember being able to buy meat. Even chicken is sky high now.
Janie Willis says
I live on disability I get 1183 a month my rent is 1000 a month if it weren’t for my sons I would be living on the street assisted living and senior housing is almost as expensive
Carol says
What is 2.2 $.50 nothing
Gary petrouske says
Congress needs to try and live on average social security income and pay rent food and beleive it or not social security people have expenses too hopefully Medicare doesn’t go up there goes the increase back to zero again
Connie says
A couple of years ago, congress received a great raise while the COLA was a pittance in comparison. They have to realize how the cost of living has gone up for SS recipients, as well as theirs.
Helen Poole says
I think the increase, even a 2% increase is a laugh! We the people worked hard for this money and the politicians who have taken from the funds should be made to pay back the money they stole with interest! I also worked til I was 70 years old which was an extra 5 years and my check increase was was less than $5.00. I do not feel it was worth the time I worked!!!
I am barely making it so why should I get excited or even feel grateful for an increase of 2% when it will be eaten up by increases in insurance alone. Not to mention increases in food costs, gas, clothing, and health care and prescriptions!! This raise as it is called is really a joke!!!! Thank you for listening !
Vera Spoto says
Social security went up so did Medicare. I’m certainly not getting an extra 2 per cent.
Terry Vargo says
There have been no SS increases for 2 years. 2% is paltry considering Medicare went up too. That left me with a $3 increase. Can’t even get a good burger for that. Why don’t you focus on repayment of the 3.6 trillion Congress borrowed from SS to finance 2 wars?
Terry Austin says
Medicare 2016 104.00 , 2017 108.00 and 2018. 134.00 all the raises went to health care. Congress and the senate can give them selfs big raise at any time that’s are money they use for there raise. They don’t ask us or have vote in there state if they should get a raise. They just do it.
Rita A. Leid says
And, as we ALL KNOW, when we get COLAs, we ALSO get another INCREASE: higher Medicare Bills!
Big deal, huh? I don’t even get $160., a month, for S S!!!!
Thank God, my husband had two great jobs, to keep us afloat!!!
Jr Clark says
By using a percentage figure the people at the lower end of the scale keep getting further and further behind. It needs to be an across the board dollar figure to make things more realistic for all.