You may have read this today:
Social Security Going Up by 2.3 Percent
Wednesday, October 17, 2007
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(10-17) 08:49 PDT WASHINGTON, (AP) – Come January, Social Security benefits for nearly 50 million Americans are going up 2.3 percent, the smallest increase in four years. It will mean an extra $24 per month in the average check, the government announced Wednesday. The cost of living adjustment means that the monthly benefit for the typical retired worker in 2008 will go from $1,055 currently to $1,079 next year. The adjustment, announced by the Social Security Administration, will go to more than 54 million Americans. Nearly 50 million receive Social Security benefits and the rest get Supplemental Security Income payments aimed at helping the poor. The adjustment, announced by the Social Security Administration, will go to more than 54 million Americans. Nearly 50 million receive Social Security benefits and the rest get Supplemental Security Income payments aimed at helping the poor. The 2.3 percent increase is the smallest since a 2.1 percent rise in 2004. It compares to an increase of 3.3 percent last year and a jump of 4.1 percent in 2006, which had been the biggest advance in 15 years. The COLA is based on the change in consumer prices from the July-September quarter of this year compared to the same period last year. Benefit payments have been tied to inflation since 1975. Advocacy groups for the elderly said that the small increase announced Wednesday underscored the need to revamp the cost-of-living adjustment to better reflect prices paid by retired people, including the money they spend on health care. The Senior Citizens League said a study it has done showed that in eight key spending areas, people over the age of 65 have lost 40 percent of their purchasing power since 2000, reflecting such factors as a doubling in the price of gasoline and home heating oil over that period. “Social Security is supposed to protect seniors in need — but with 5 million seniors below the poverty line, it’s clear the system is failing them,” said Shannon Benton, executive director for the league.
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