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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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159 Comments
don k.
October 12, 2013 at 8:47 pm

anyone that gets a too small of a ss check can get supplemented by a state program. it's called msa. and don't forget food stamps.
hey if they don't give you enough, and you paid in to SS, there is no shame.
oh and to the poster that talked about ssi precipitants getting ss/ssi... I paid in and now I am disabled. f*** off
you should be complaining about the Somali's and illegals raping SS.

BRONXBOMBER
October 12, 2013 at 6:02 pm

I know many people who are receiving much less then $1000.00 per month on their social security checks.Most of these people retired when the cost of living was at a standstill in this country.The way the prices of food,gas,clothing and other basic needs has risenin the last ten years,leaves them nothing at all to live on month to month.Obviously raises of one percent a year is outrageous to these senior citizens of sixty five to minety years old.Some of these hard workers for forty plus years in this country get less on theri social security checks then most illegal aliens and welfare supported people.IT JUST ISN'T FAIR!!The cost of living raises should be closer to the cost of rising goods that these people need to have week to week.Many of them go without their medicines,food,heat in the winter and basic necessities.LETS GIVE THE PEOPLE UNDER A CERTAIN MONTHLY SOCIAL SECURITY DOLLAR AMOUNT A LARGER RAISE EVERY YEAR SO THEY CAN CATCH UP TO INFLATION.

Sylvia Armijo
October 12, 2013 at 1:01 pm

OH WOW!!!!!!!!!!! I WILL RECEIVE A WHOLE $21.00 MORE
A MONTH. I AM 72 YEARS OLD AND WAS LAID OFF MY
JOB OF 22 YEARS IN 2008 BECAUSE MY WORK WENT OUT
OF BUSINESS DUE TO THE FINANCIAL CRISIS.
I CANNOT GET A JOB AT MY AGE NO MATTER HOW QUALIFIED I AM. SO I AM LIVING OFF MY SAVINGS AND $1,407.00 OF SS A MONTH. MY SAVINGS IS RUNNING OUT AND SS ONLY TAKES CARE OF MY RENT AND MAYBE A COUPLE OF MY MONTHY BILLS . WHAT DO I DO TO SURVIVE AFTER THAT????????????????????

Clancy
October 11, 2013 at 2:59 pm

Im almost 67, a veteran and just retired. I know a lot of you dont get that much in SS and there are many on ssi that really dont deserve it. Thats an enforcement issue and area that could really reap a lot back into SS coffers. Im sure many of you saw the recent 60 minutes report on one particular lawyer in the west virginia area where he and doctors and a judge were livin large off of helping people get ssi that were not deserving of it. I cant imagine whats going on in the rest of the country. The problem is so huge we can possibly solve the so called shortage of the ss trust fund if it were possible to get back all that'stolen' money from the parasites that feed on the system.

Fran Perry
October 09, 2013 at 11:29 pm

I have had lots of people worried about getting their checks meaning...the SSI...and Social Security checks because of the shutdown..stop worrying because it was Social Security was instituted by FDR in 1933 as a "Trust Fund"...where are working people would pay into it for when they retire or become handicapped...it will always be there...and true Presidents such as Bill Clinton...and others have borrowed from it..but, they have always paid it back...and this Netsi said that when the COLA kicks in her rent goes up...since, Obama, has been in office that isn't so...we get a untility allowance...which makes our rent go down and the electric company usually raises your electric bill...this year I should have been paying $151.00 a month but, it is much lower...she or he doesn't know anything going on...believe me..she should be thankful she has that income...a month I am...and I thank God for my beautiful apartment where I even have planter boxes in my windows..and can have a garden...and it is Housing...so, don't worry...Social Security and SSI will always be here the government cannot take it away from you...you paid into that "Trust Fund" for many many years.

Rich
October 09, 2013 at 6:50 am

Earn extra income, on eBay and/or craigslist, via a smart phone or personal computer,

earn enough to pay for your monthly smartphone and or personal computer expenses.

and then grow your electronic money making business.

you can earn additional monthly income this way...

On eBay there are many thousands of ways to do this.

buy cheap at tag sales, garage sales, 2nd hand stores, thrift stores, surplus stores, dollar stores, trash cans, curb pickups.....

add your mark-up and sell on eBay or Craigslist.

remember one persons trash, throw away, is another person's treasure.

somebody wants it!

and you have a big audience / market place online.

you can do it.

Sammy
October 07, 2013 at 11:18 pm

I hope no one ever expected that an increase in SS Cola to actually raise you standard of living. If you cant live on what you get now and if an increase is $18, $25, $50 or $100 per month, I am sure you will find a way not to make it. We have to learn to get by on what we make or find some ways to produce revenue for yourself

kristine
October 07, 2013 at 8:22 pm

Will there be a raise fot ssi in 2014

terrt austin
October 07, 2013 at 5:13 pm

i am 70 years old and did not work long enough to collect the full social security ammount am getting $815 per month how much will i recieve with the new payments its real hard to make ends meet right now so hope the new 2014 rates will not be to high and when do the new rates come out for the public to see looking forward to your reply terry austin

NETSI
October 07, 2013 at 3:34 pm

but some of us are not collecting illegally..and we live on 710$ a month plus mayb some food stamps (70$) per month..I get a housing subsidy too thru the VA's housing program because I am a Veteran..but no sooner the Cola kicks in my rent goes up and my Food stamps go down..so in reality we are getting NOTHING..ZERO ,ZILCH..THEY JUST WANT TO FOOL YOU INTO THINKING THAT U ARE!! TRUST ME WHEN I SAY IF I COULD MAINTAIN A FULLTIME JOB OR EVEN FIND ONE MAKING MORE THAN MINIMUM WAGE I'D TELL THEM TO STICK THIS CHECK...

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