Social Security recipients to see a tiny increase in benefits
Millions of Social Security recipients and federal retirees will get only tiny increases in benefits next year, the fifth year in a row that older Americans will have to settle for historically low raises.
There was no increase this year. Next year’s benefit hike will be small because inflation is low, driven in part by lower fuel prices.
The federal government announced a 0.3 percent cost-of-living increase in monthly benefits next year on Tuesday morning. By law, the COLA is based on a government measure of consumer prices. .
The average monthly Social Security payment is $1,238. The adjustment adds up to a monthly increase of less than $4 a month for an average recipient.
More bad news: Medicare Part B premiums, which are usually deducted from Social Security payments, are expected to increase next year to the point in which they will probably wipe out the entire COLA.