Social Security Benefits Rising 1.5 Percent in 2014

Social Security Benefits Rising 1.5 Percent in 2014 Photo (cc) by 401(K) 2013

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.

Learn everything you need to plan your dream retirement

The Only Retirement Guide You'll Ever Need gives you the knowledge you need to retire on your own terms. Sure, you can pay a financial adviser, but this online course gives you total control to create a custom retirement plan around the things that make you happy.

You're going to get expert, personalized advice. You'll have access to the latest tools. And when it's complete, you'll be able to approach your retirement confidently and with peace of mind.

It's time to plan the best years of your life. Let's get started.

Popular Articles

15 Smart Ways to Organize Every Room of Your Home
15 Smart Ways to Organize Every Room of Your Home

Are you sick of clutter and digging around to find things? Get your household organized with these brilliant and inexpensive tricks.

These 6 Lifestyle Changes Might Help Prevent Dementia
These 6 Lifestyle Changes Might Help Prevent Dementia

Science says these practices can lower the risk of cognitive decline as we age.

10 Food Staples That Are Easy and Cheap to Make Yourself
10 Food Staples That Are Easy and Cheap to Make Yourself

Making any of these key foods yourself will improve your meals and your budget — not to mention your health, in some cases.

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Comments