Social Security Benefits Rising 1.5 Percent in 2014

What's Hot


2 Types of Black Marks Might Vanish From Your Credit File SoonBorrow

5 Surprising Benefits of Exercising Outdoors in WinterFamily

6 Ways the Obamacare Overhaul Might Impact Your WalletInsurance

7 Dumb and Costly Moves Homebuyers MakeBorrow

Obamacare Replacement Plan Gets ‘F’ Rating from Consumer ReportsFamily

Beware These 12 Common Money MistakesCredit & Debt

17 Ways to Have More Fun for Less MoneySave

This Free Software Brings Old Laptops Back to LifeMore

30 Household Uses for Baby OilSave

Nearly Half of Heart-Related Deaths Linked to These 10 Foods and IngredientsFamily

10 Ways to Save When You’re Making Minimum WageSave

Boost Your Credit Score Fast With These 7 MovesCredit & Debt

7 Painless Ways to Pay Off Your Mortgage Years EarlierBorrow

Considering a Fixer-Upper? 15 Ways to Avoid a Money PitGrow

This Scam Now Tops ID Theft as the No. 2 Consumer ComplaintFamily

6 Stores With Awesome Reward ProgramsFamily

6 Healthful Treats for Your DogFamily

6 Ways to Save More at Lowe’s and The Home DepotSave

20 Tips for Buying a Home in the Best Location, Location, LocationGrow

30 Awesome Things to Do in RetirementCollege

New Study Ranks the Best States in the U.S.Family

6 Overlooked Ways to Save at Chick-fil-AFamily

The Most Sinful City in the U.S. Is … (Hint: It’s Not Vegas)Family

House Hunters: Beware of These 6 Mortgage MistakesBorrow

Ask Stacy: How Do I Start Over?Credit & Debt

Secret Cell Plans: Savings Verizon, AT&T, T-Mobile and Sprint Don’t Want You to Know AboutFamily

10 Ways to Save When Your Teen Starts DrivingFamily

The True Cost of Bad CreditCredit & Debt

You’ll Soon Pay More to Shop at CostcoSave

Marijuana Stocks Flaming Out Under TrumpFamily

21 Restaurants Offering Free Food Right NowSaving Money

In one of the smallest increases ever, the average recipient can expect to get $19 more per month.

Don’t spend it all in one place.

Next year, Social Security recipients will get an average of $19 more per month, for a benefit of $1,294, CNNMoney says. That’s an increase of 1.5 percent, and one of the smallest on record. It’s less than half the 3.6 percent increase seen in 2012.

It’s so low because the increase is based on the percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers from the third quarter of the last year to the third quarter of this year. Inflation has remained low.

But, as we explain every year, prices on certain goods and services rise much faster than the overall rate of inflation. One of those, key for seniors, is health care. “Government figures show the cost of medical care rising twice as fast as other prices, up 2.4 percent over the past year,” CNNMoney says.

And while a 7.5 percent decline in gas prices helped keep the overall inflation rate low, that’s not necessarily something that helps seniors, CNNMoney says. Many no longer have a work commute, and may use cars less.

Worse news: Social Security increases may not improve much if the federal government switches to a new method of calculating the cost of living. By using chained CPI, which accounts for changing spending habits in the Consumer Price Index, benefits would grow at a slower rate than with the current CPI calculation, CNNMoney says.

Worried about retiring? Watch the video below to learn about getting the most out of Social Security.

Stacy Johnson

It's not the usual blah, blah, blah

I know... every site you visit wants you to subscribe to their newsletter. But our news and advice is actually worth reading! For 25 years, I've been making people richer without making their eyes glaze over. You'll be glad you did. I guarantee it!

💰🗣📰

Read Next: 7 Things Worth Paying More For

Check Out Our Hottest Deals!

We're always adding new deals and coupons that'll save you big bucks. See the deals to the right and hundreds more in our Deals section.

Click here to explore 2,021 more deals!