By Jeffry Bartash, MarketWatch –
WASHINGTON — People who get Social Security checks will receive a 1.7 percent increase in their monthly benefits next year, the government said last week.
The increase amounts to about $19 extra for the average Social Security recipient, who received roughly $1,130 each month in 2012.
The consumer price index (CPI-W), rose by 1.7 percent in the 12-month period running through September 2012, the Labor Department said Tuesday. Annual increases in Social Security’s cost-of-living adjustment are tied to the CPI-W.
The Social Security Administration announced the official increase on Tuesday morning.
The higher level of benefits, meant to keep up with inflation and prevent seniors from falling behind, will kick in on Jan. 1.
Last year, Social Security recipients got a 3.6 percent increase amid spiking gasoline and food costs. Yet price pressures have tapered off in 2012, leading to a lower increase in the cost-of-living adjustment.
Seniors didn’t get any such increases in either 2010 and 2009.
The CPI-W index is also used as a baseline to determine certain wage increase in union contracts and other public benefits.
There would be a lot more people contributing to Social Security if Obama didn’t keep inviting people to go on welfare.
WoopDeeDoo-I am going to buy a lot with this. It will just about cover the increase in Medicare this year and won’t even come close in 2014. We keep going backwards year after year. I sometimes think they want us all at the poverty level. I just wish they would give me back everything I paid into Social Security over 50+ years.
7.1 percent might keep up with inflation !