Small Cost of Living Raise in 2014 for Social Security Benefits, Reported Smallest in Decades

The cost of living adjustment to Social Security Benefits in 2014 is likely to be very small, according to reports. This marks the 4^th year, in the last 5 years, that recipients of Social Security benefits will see little to no increase.

According to the American Institute for Economic Research, Social Security benefits in 2014 will likely see a 1.4% to 1.6% increase. In 2013, Social Security benefits rose 1.7%. The most significant raise in the last five years was in 2012, when benefits rose 3.6%.

The increase has been small primarily because inflation has been tame. However, it is unclear how the small adjustments to benefits actually affect senior citizens and disabled people, who tend to have different spending habits than the working population.

For example, those who rely on Social Security benefits like retirement and disability generally spend more on health care, and health care costs in the US rose 2.5% in the last year. Meanwhile, the cost of gas dropped 2.4%, but it is unclear if this is a benefit to Social Security beneficiaries, especially retirees who no longer commute to work.

One of the government’s main inflation readings is the Consumer Price Index for workers, but currently the cost of living adjustments to Social Security and veterans’ benefits are not tied to this index. However, some members of Congress, as well as the Obama administration, want to change that with “chained CPI,” which could put a squeeze on retirement and disability benefits.

Chained CPI tracks changes in spending habits as tied to inflation. For example, if the cost of gas goes up, people tend to drive less or buy more fuel-efficient vehicles. Because people tend to spend less when prices go up, chained CPI is always lower than other CPI measurements.

The switch to chained CPI would cut future cost of living increases in Social Security benefits. While that would trim billions of dollars off the nation’s deficit over 10 years, but it would also mean a 3% drop in Social Security benefits below current levels. That could seriously hurt the incomes of Social Security recipients.

There are currently 58 million senior citizens, veterans, and disabled workers, along with their dependent spouses and children, who need Social Security benefits.

The Big 6 Social Security Benefits, and You

Depending upon the facts of your case, you, your kids, and/or your spouse may be eligible for a range of disability benefits under the Social Security Act.

If you suffer from a disability and are unable to work, you may be eligible for Social Security disability benefits that include:

• Social Security Disability benefits
• Supplemental Security Income or SSI
• Widow/Widower’s benefits
• Retirement Benefits
• Medicare/Medicaid benefits
• Children and Dependent’s benefits

The type of benefits to which you may be entitled depends upon your income and how long you have worked.

The Strom Law Firm Can Help with Social Security Benefits Claims

Applying for Social Security Disability or Retirement Insurance can be complex.  However, we understand that you need your benefits and we will put our years of experience to work for you to ensure that you have the representation necessary to actively pursue your claim. Call the attorneys at the Strom Law Firm today to discuss your Social Security Disability or Supplemental Security Income case today. We will be glad to discuss any questions you may have during our free, confidential consultation. Call the experienced attorneys at the Strom Law Firm at (803)252-4800.