Social Security increase anticipations this 2014 are only estimated to be at a 1.5% increase, leaving millions of Social Security receivers in the country waiting for the all-time low change next year. According to Yahoo! News this Monday, Oct. 14, this 2014 will simply be another year with a very minute raise for many of the people who rely on the financial support of U.S. Social Security benefits, federal pensions, and veterans’ benefits.
The Social Security increase is believed to be at an all-time low amount of only 1.5% this 2014, as early predictions from the Associated Press come to light. The reason for the small SS increase? Due to consumer prices not rising within this last year significantly — at least when measured by the U.S. government — only a minute percent-and-a-half change has been deemed necessary.
Just as it was this 2013, next year will mark another year in a row in which the tiny Social Security benefits raise is at an all-time low since the very onset of automatic adjustments were put into play back in 1975.
Over a fifth of our country is waiting to hear news on the latest details surrounding the cost-of-living adjustment (known as COLA) as well. The COLA statement is supposed to be announced by the U.S. government at around this time, but as a result of the ongoing government shutdown, the important information remains a mystery to millions of Americans for now.
More than a fifth of the country is waiting. This isn’t a small number that’s waiting, either, as a projected 58 million citizens — ranging from retirees, elderly and disabled workers, as well as their in-need spouses or children — require these benefits, regardless of how small the Social Security increase levels may be in 2014. According to the AP, the average monthly payment to a family is $1,162 per month, with the 1.5% increase only providing the payment to increase by a measly $17.
The estimated country COLA further involves benefits for disabled benefits and a disability program for the poor. These numbers are often provided in October so that programs may prepare and adjust for eventual payment changes in January of the next year.
“David Certner of AARP said seniors are getting squeezed financially from many sides. Retirement portfolios took a big hit when the markets collapsed a few years ago, and even though the markets have rebounded, safer investments favored by older Americans are paying relatively low interest rates:
"’Social Security COLAs have been low and anybody who's trying to live off interest rates and getting returns on any of the meager savings they have is getting killed because there's no return on your CDs or other fixed income assets," Certner said. "The one bright spot is that health care costs have slowed down. But at least on the income side, it has been a pretty tough few years in terms of trying to keep up with expenses.’"