Boost in Social Security Benefits Not Enough for Some Pensioners
About 44 million Americans will get a 3% increase in their Social Security benefits next year, boosting their monthly checks by an average of $19, the government announced Thursday.
But for many people, the cost-of-living adjustment--the smallest in six years--will not match the increases in health care and other costs that consume much of their incomes.
Medical expenses alone have increased 7% during the past 12 months, more than twice the 3% increase in overall consumer prices. The benefit increases, beginning with checks to be delivered on Dec. 31, are to offset inflation.
George Higgins, an 87-year-old retiree in McLean, Va., said growing medical care costs, particularly for prescriptions, represent the largest monthly expense for him and his wife.
Higgins also said that incomes of many of his retirement community neighbors have been cut by falling interest rates.
Michael Evans, head of a Washington economic forecasting firm, said many pensioners “are getting killed by higher property taxes” imposed by local governments to compensate for tax bases eroded by declining real estate values.
Although the 3% increase will boost the average monthly Social Security check to $653 from $634, it will be the smallest cost-of-living adjustment since 1987, when benefits rose 1.3%. They rose 3.7% in 1992 and 5.4% in 1991.
The adjustment announced Thursday also affects Supplemental Security Income, the welfare program that provides a minimum income for poor people who are aged, blind or disabled. Those payments also will increase by 3%, boosting the maximum monthly payment for individuals to $434 from $422 and for couples to $652 from $633.
Members of Congress, meanwhile, will see their paychecks go up 3.2%, or $345 monthly.
George Chapin, director of payroll in the House sergeant-at-arms office, said the congressional cost-of-living increase would boost congressional pay from $129,500 to $133,644.
The Social Security Administration also reported Thursday that the cap on the maximum earnings on which the 7.65% Social Security tax may be imposed will be raised to $57,600 from $55,500.
