Small COLA for Seniors The government announced this week that Social Security benefits will rise only 1.5% in 2014, the smallest increase since automatic adjustments were adopted in 1975. The cost-of-living adjustment (COLA) is based on the government’s measure of annual inflation in the July through September period and, in this case, reflects slow price growth over the past 12 months. Since 1975 COLA raises have averaged 4.1% and have been less than 2% only six times, including three times in the past five years. There was no increase in 2010 or 2011 because inflation was too low. The raise affects disabled veterans, federal retirees, those who receive Supplemental Security Income and the government’s disability program. Social Security pays the average American retired worker $1,272 a month. The increase will add another $19 per month. This week’s announcement was previously scheduled for two weeks ago, but was delayed by the government shutdown. (Source: Associated Press)
Posted on: Fri, 01 Nov 2013 18:18:32 +0000
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