Wednesday, October 30, 2013

Social Security COLA Will Be Paltry 1.5 Percent

Posted By on Wed, Oct 30, 2013 at 9:29 AM

Once federal officials were able to look at the latest numbers in the Consumer Price Index—the nation's main inflation gauge—which indicated that inflation has remained relatively low, they could announce adjustments to next year's Social Security benefits. And the news wasn't good for recipients.

Next year's SSI cost-of-living adjustment will rise only 1.5 percent, one of the smallest increases ever in the program's annual realignment. The increase is a bit lower than 2013's 1.7 percent increase and considerably lower than 2012's 3.6 percent adjustment.

The 2014 adjustment is expected to add approximately $19 to an average social security check, making the average benefit about $1,294.

The Consumer Price Index took note that a national 7.5 percent decrease in gas prices was a big factor in keeping inflation low. However, pretax gas rices in Idaho remain some of the highest in the nation,

SSI cost-of-living adjustments were adopted in 1975.

Approximately 165 million workers pay Social Security taxes. About 10 million earn wages above the threshold.

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