A Meager Social Security Increase For Beneficiaries - $3.92
That translates to just 0.3 percent – the smallest increase to be implanted to cover rising costs and prices. Of course, that’s an improvement over last year when benefits didn’t increase at all. The average monthly benefit for retirees is $1,305.30.
These benefits are provided to 66 million people – people with disabilities, widows, retirees and orphans. The annual cost of living adjustment was enacted in 1975. The maximum benefit for someone who retires at full retirement age is $2,639 a month. This kind of check will only get a $7.92 increase as well.
Depending on how much retirees earned when they worked and the age in which they began drawing their benefits, they may have higher than average benefits.
Millicent Graves, 72, worked as a veterinary technician in Virginia, and her monthly benefit is $1,033, which means she’ll only get a $3.10 increase. However, other costs have increased far more. She said her supplemental medical insurance is rising another $45 a month. Graves said the $3 increase isn’t going to do a thing to help her, as her expenses are going up five to 10 times that amount.
Graves said she’s lucky to have some investments but doesn’t know how anyone who lives on Social Security can handle them.
The drop in both oil and gas prices has managed to keep inflation down during the last few years. There have been three freeze benefits this decade alone – 2010, 2011 and 2016. Some people have said adjusting based on inflation reading is flawed, as retirees don’t drive as much as the younger generation, meaning they don’t see the benefit from low gas prices.
According to AARP, the Social Security COLA has been minute or absent. The agency said beneficiaries and their families rely on every cent. Although it’s better than the nothing beneficiaries got this year, it still doesn’t do much to help those that need Social Security benefits.
AARP said retirees spend a plethora of their money on healthcare, an industry that’s had faster-rising prices than overall inflation. It’s for that reason, the agency said, that older Americans have legitimate concerns.
Retirees are also hurting by the low-interest rates because they use their savings to cover some of their living expenses.