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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
Van Archer
October 17, 2013 at 2:16 pm

The true COLA needs to be figured right , That means Utilities, Car Gas, Food, Medicines, Doctors cost & The Skyrocketing cost of OBAMACARE PREMIUMS (tripling everyone cost)!

All is fair why keep cheating retiree !!!!!

Van Archer

Marie Vanyo
October 17, 2013 at 9:16 am

Try supporting two people on $712.00 a month, it is very hard. My husband can't get a good job because of his criminal back ground.
It's not FARE What FLORIDA has done to him, by labeling him a Sex offender, and the COPS know that he is not and so does our Church. Their lawyers are working on his case trying to get him back into court to get this off his head. I sure HOPE they can do it.

joey
October 15, 2013 at 2:39 pm

So its good to get more money sent everything cost so much in USA and that food stamps will go down because of USA money has gone up for people on SSI or SSD.

edmonk
October 15, 2013 at 9:11 am

Rip off

edmonk
October 15, 2013 at 9:11 am

Why steal from us? We have earned it fools.

Edgar
October 14, 2013 at 1:00 am

Why to blame the president, we have the responsibility to save to have funds in our old age, it is so easy to blame others for Our mistakes.

Julie
October 13, 2013 at 8:29 pm

I wish I got 925. I only get 712.00 per month. Iwould love to see Obama live on that for 2 months it goes very quickly. After bills and such.

Diane
October 13, 2013 at 1:00 pm

Try living on 952.00 a month. It isn't easy yet Obama thinks we are rolling in the dough and we need to pay more taxes to support his lifestyle and Washington. Go figure?

Betty Smith
October 13, 2013 at 11:54 am

Fortunately I do not depend just on SS. But I know a lot people who do. I know the last years have been extremely hard on them. 2 years with no raise at all, and now these small, almost insignificant raises. What are they expected to do when their utilities continue to go up, their meds, the price of gas and groceries? Sometimes dying seems like a better option.

don k.
October 12, 2013 at 8:53 pm

sorry msa is for Minnesota ssi only.
the point is though there are other programs out there.