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Social Security up 1.5 percent in 2014?

By Jennie L. Phipps · Bankrate.com
Monday, August 26, 2013
Posted: 5 pm ET

Plug this into your retirement planning budget for 2014: The Congressional Budget Office has estimated that the cost of living adjustment, or COLA, for 2014 will be 1.5 percent, slightly less than 2013's 1.7 percent. The official announcement will be made in the middle of October.

The COLA not only affects Social Security, it also sets the annual increases for federal retirees; Supplemental Security Income, known as SSI; military retirement, and veterans' pension benefits. Plus, eligibility for Medicare extra help, Medicaid and eligibility for federal and many state food and housing assistance programs also are tied to the annual COLA.

If you were receiving the average worker's Social Security retirement benefit of $1,224 in July, your increase, effective Jan. 1, would likely be $18.36 per month or about $220 a year. Don't spend it all in one place.

In his 2014 budget request, President Barack Obama proposed using a different COLA calculation, the chained CPI, as a way to help control the cost of Social Security. The House Republican Study Committee also has urged adoption of the chained CPI. With bipartisan support, there is a good possibility the chained CPI could become reality as early as 2015 -- it's too late for 2014.

If the chained CPI were to be implemented -- this is just a hypothetical -- the 2014 COLA increase would be about 0.25 percent lower, or 1.25 percent, in 2014. That would make next year's increase for the average Social Security recipient about $15 a month -- $3 lower than it will be with the current calculation. Over 10 years, the National Association of Retired Federal Employees estimates that the average Social Security recipient would lose a total of $240.

The good news is that the chained CPI would make a significant difference in the amount of money the federal government spends on Social Security. The Congressional Budget Office estimated in March that if the chained CPI were implemented in 2014, that it would save Social Security $127.2 billion from 2014 to 2023.

That's a step in the right direction.

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161 Comments
Obama
October 06, 2013 at 1:25 am

That die for u slaved for u an that gave to u

Obama
October 06, 2013 at 1:24 am

That's america for ya turn your back on your people

Boo
October 06, 2013 at 1:18 am

Fck them Lil ssi checks

Boo
October 06, 2013 at 1:05 am

Stop giving out hand out give them land and fck the gov

Ron
October 04, 2013 at 3:37 pm

When i was growing up, they always said the Democrats were for the working man and this proves it. So i guess they were not lying after all. Be careful, with all that on SS this could put you in a higher tax bracket ... When will people ever learn not to trust either party. Dems have always been about spending, Republican have always been tight wades. They have always wanted to pay people 2 dollars and hour and tell you, you should be thankful for that. While they could never set up straight in the chair because they had so much money in the billfold it made them sit to one side.

James F Humphreys
October 04, 2013 at 2:31 pm

It seems that the cost of living is lot more than thr increst
And we never seem to get even and allways loseing.

Greg
October 04, 2013 at 12:25 pm

Let's see, the elderly and veterans have received a grand total of 3.2% over the past 5 years that the dems have been in charge, a disgrace. Please tell me again who hates the elderly and Americas military retirees? I agree that SS was never intended to be sole means of support, but the amount should keep with the real inflation. Anyone paying only 1.5% more for the things they use everyday over last year. Food prices rising faster than my calculator can tally, energy, utilities.

edward rudd
October 03, 2013 at 8:33 pm

this is a really redicolous increase everything is such a mess we need to be afforded more work trial for those of us who are trying to get back in the work force the bitty petty 750.00 a month isnt really enough supplement to live comfortabably...

David cornwell
October 03, 2013 at 5:14 am

I agree there are a lot of disabled people on ssi but don't tell that to people like me who paid into the system for over 25 years an 3 heart attacks later and 2 back surgerys later I don't deserve ssi it not a lot of money way below the poverty level why don you try to live on what I live on lot of luck

Ed Spadafora
October 02, 2013 at 11:18 pm

I personally think that the so-called SSI (comes out of Social Security)and is paid to disabled workers is a big farce. A very large number of these people are collecting illegally. I have a next door neighbor who went on SSI at age 22. There is nothing wrong with him, and he's been collecting for 31 years!!