Social Security benefits to rise, but likely won't offset retirees' losses

October 16, 9:39 AMBusiness ExaminerDarrell Proctor

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Finally, some good economic news - if you receive Social Security benefits.

Those benefits, which are paid to some 50 million folks, will increase 5.8 percent next year. It's the largest jump in more than 25 years and means the average recipient will get an additional $63 per month, with the typical check rising to $1,153 from $1,090.

It's the largest increase since 1982, when benefits were hiked 7.4 percent. And it more than doubles this year's increase of 2.3 percent.

Will the hike provide an economic stimulus? Not if the current economic crisis continues. The money likely will go to pay higher food and energy costs, and it almost certainly won't make up for the losses retirees have sustained to their retirement accounts during the current economic downturn.