Social Security cost-of-living adjustment expected to be lower
2006-10-18
Source: USA Today
email this
print this
del.icio.us
digg this
rss feedThe nation's nearly 49 million Social Security recipients are in line to get a smaller average increase in their monthly benefit checks in 2007 than they did this year, though less of the gain will be eaten up by rising Medicare premiums.
Private economists are predicting an increase of around 3.4% for 2007. That follows a benefit increase of 4.1% this year, which was the largest percentage rise in 15 years.
The Social Security Administration was to announce the 2007 cost of living adjustment, or COLA, on Wednesday. Social Security recipients will see the increase reflected in their January checks.
Mark Zandi, chief economist at Moody's Economy.com, said he expected the increase would be 3.4%, which would translate into an increase of around $34 for the average Social Security recipient, currently getting a monthly check of $1,011.
The COLA amount is based on the rise in the consumer price index in the July-September quarter of this year compared with the same quarter in 2005.
By law, benefit payments for Social Security retirees, the disabled and persons earning Supplemental Security Income are adjusted each year to keep inflation from eroding the benefits.
Click here to see the full article.
