Those receiving Social Security shouldn’t count on a big increase in 2013. Each monthly check will likely go up between 1% and 2%.
The rise is among the lowest since automatic adjustments were put in place in 1975, reports the Associated Press. The average recipient will receive an increase of between $12 and $14 per month. The numbers will be made official on Tuesday, when inflation figures are released to the public.
Social Security uses a cost-of-living adjustment (COLA) to determine the rate at which entitlements increase their payments. Use of COLAs has ensured that income for seniors has increased over the last 10 years while incomes have dropped for all other age groups.
Still, with food and energy costs increasing, seniors may feel that the adjustment isn’t sufficient to meet growing needs. Medicare insurance alone is increasing $7 per month next year, nearly wiping out the rise in benefits.
Last year’s Social Security hike was 3.6%. Since 1975 the average increase in benefits has been 4.2%