The updated Social Security increase information has been unveiled for 2018.
Here’s what you should know from Friday’s announcement:
- Recipients of Social Security will get a 2% increase in what they’ll receive, which is below the 2.2% estimate.
- The figure is the highest increase since 2012, when recipients got a 3.6% increase.
- In 2017, the Social Security increase was only 0.2%, while in 2016, it was flat.
- The cost-of-living adjustment (COLA) covers more than 61 million million Social Security beneficiaries and more than 8 million of those getting Supplemental Security Income benefits. Some people get both.
- On average, people will get an extra $25 per month.
- The Consumer Price Index, which measures inflation, helped determine the Social Security increase.
- Young recipients will also get a higher earning limit, as it will be 0.7% higher to $17,040 for people below the age of 66, meaning their benefits will decline by $1 for every $2 above that amount that they earn.
- The average monthly payment from Social Security is $1,258, or about $15,000 a year.
- Advocates for seniors say the Social Security increase doesn’t accurately represent inflation, especially the rising cost of health care.
The opinions contained in this column are solely those of the writer.
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