Low Inflation Means Low Rise in Social Security for Retirees

The government’s good news on the inflation front Friday brought a disappointing 1.3% cost-of-living increase to the 44 million Americans who receive Social Security checks.

The rise in benefits, the smallest since 1987, will add $10 to the average monthly Social Security check of $780.

Many senior citizens depend heavily on the few extra dollars a month that Social Security’s annual cost-of-living raises bring. And while inflation overall remains contained, prices are up substantially in some areas, such as prescription drugs, where the elderly incur disproportionate expenses.

The Social Security COLA adjustments also will increase the maximum monthly payment for 6.6 million low-income individuals receiving Supplemental Security Income by 1.3%, boosting the maximum SSI check by $6 to $500.

For 147 million working Americans, the maximum annual earnings subject to Social Security taxes next year will also rise, to $72,600 from $68,400, though the tax rate remains 6.2%, the government said. That means a maximum Social Security tax of $4,501 for workers, a figure matched by employers.

Separately Friday, the Health and Human Services Department said the monthly Medicare premiums deducted from most Social Security checks for health insurance coverage will rise by $1.70 next year, to $45.50.