Standard News

Hide Advertisement
  • Business
  • Culture
  • News
  • Technology
  • Trending
Site logo
ADVERTISEMENT
ADVERTISEMENT

Social Security Benefits to Rise by 2 Percent in 2018

By Giana Brucella 2 min read
Advertisement - Continue reading below
social security benefits
Source: Flickr/401(K) 2012

The U.S. government has announced that Social Security benefits will increase by 2 percent in 2018, which will add approximately $27 to the average monthly check of $1,258.

It’s been years since the government has made an increase this high, and with over 66 million Americans receiving Social Security checks, the increase will help keep many from poverty. It’s also the government’s greatest proponent of anti-poverty, as it has saved over 26 million Americans from living insufficiently this past year.

Advertisement

Those who are already recipients are welcoming the increase.

“We need more money to live on,” said Sandy Lacoss, a Woodstock, VT., resident and retired cleaner. “We need more money to live on. My rent goes up every year. I really can’t afford it.”

Lacoss, 71, suffers from rheumatoid arthritis, asthma, and dizziness. Her doctors told her she can’t work and should look into getting a medical alert system, such as Lifeline. However, her low pension and Social Security checks are not enough to pay for such a commodity. Lacoss’ income of $12,060 puts her right below the yearly poverty line.

social security benefits
Source: U.S. News

In 2009, Congress approved President Barack Obama’s request of an additional $250 one-time payment for those already receiving Social Security. But checks haven’t seen a real change in increase since the 2-percent raise in 2011. In 2017, the raise only went up by 0.3 percent, and in 2016 there was no raise at all.

Raises are instituted in order to accommodate to higher costs of living. The Cost-Of-Living Adjustment (COLA) often seems inaccurate to check recipients.

social security benefits
Source: AP News

“If you polled seniors, 10 out of 10 would say the COLA is not keeping up with their costs.” said Gary Koenig, the Vice President of Financial Security for AARP.

Mary Johnson, an advocate from The Senior Citizens League, said, “It’s causing them to dip into savings more quickly … The lifetime income that they were counting on just isn’t there.”

She also said that continual years of no COLA increase negatively effects seniors for the rest of their life.

However, others believe that the 40-year-old formula is a capable tool in figuring out the increase.

“Seniors are not getting slighted,” Charles Blahous, previously a public trustee for Social Security and Medicare from 2010-15, said.

The researcher at the Mercatus Center said that years where COLA did not increase were beneficial to senior citizens. Although the increase neither rose nor fell, recipients were still getting the same amount. The 2018 increase is largely due to elevated gas prices and other amenities caused by both Hurricane Harvey and Hurricane Irma.

The COLA formula is based on the measure of inflation (CPI-W), which follows rising costs for workers from July through September. It is evaluated against the same months of the year prior.

Advertisement - Continue reading below

Want a drive with De Niro? Hail a Sarajevo taxi
Entertainment
Reuters 1 min read

Want a drive with De Niro? Hail a Sarajevo taxi

Rocky Start on 2017 U.S. GDP Does Not Alter Continued Slow Trend Growth
Business
Jason Owen 2 min read

Rocky Start on 2017 U.S. GDP Does Not Alter Continued Slow Trend Growth

Florida says four new locally transmitted Zika cases, Congress must act on funds
News
Reuters 1 min read

Florida says four new locally transmitted Zika cases, Congress must act on funds

Honduran family drops bid to toss U.S. money laundering case
News
Reuters 2 min read

Honduran family drops bid to toss U.S. money laundering case

Gun used to kill Trayvon Martin sold for $250,000: TV reports
News
Reuters 2 min read

Gun used to kill Trayvon Martin sold for $250,000: TV reports

Monday Night Football shines spotlight on national anthem protests
News
Reuters 2 min read

Monday Night Football shines spotlight on national anthem protests

Do You Dare Enter This Haunted Tunnel in North Carolina?
Trending
David Clarke 2 min read

Do You Dare Enter This Haunted Tunnel in North Carolina?

U.S. appeals court upholds conviction over shared password
News
Reuters 2 min read

U.S. appeals court upholds conviction over shared password

Corrected: Buffett donates nearly $2.9 billion to Gates charity and four others
News
Reuters 2 min read

Corrected: Buffett donates nearly $2.9 billion to Gates charity and four others

Dallas gunman struggled with marksmanship in training: ex-Army peer
News
Reuters 2 min read

Dallas gunman struggled with marksmanship in training: ex-Army peer

load more Loading posts...

sidebar

ADVERTISEMENT
ADVERTISEMENT

sidebar-alt

  • About Us
  • Imprint
  • Contact Us
  • Terms of Service
  • Privacy Policy
  • For Advertisers