Senior citizens and Veterans will see a 0.3% increase in their 2017 monthly payments. After no increase in 2016, this minimal amount is not very appreciated.
Social Security increase expected to be offset by Medicare costs
Senior citizens who rely on Medicare Part B health care coverage have already seen their cost rise over the last year, even though a COLA adjustment was not given. It is expected that the cost for healthcare coverage will continue to rise but at a much steeper rate than the money being given. The majority of Social Security recipients could expect their healthcare costs to completely offset the increased amount, meaning their actual take-home amount may decrease overall.
Calculating your monthly increase
A 0.3% increase is generally very small, falling under the 1% mark. To calculate your increase, take the amount of money you receive each month and multiply it by .003. An example would be, for someone earning $1000 a month. They would take (1000×0.003) to determine their monthly increase. For most Social Security recipients, the increased amount will fall under $5 a month. For Veteran Disability and retirement recipients, the increase can be calculated the same way.
A large number of individuals receive retirement or disability benefits
A total of over 70 million Americans rely on these benefits as their source of monthly income. This amounts to nearly 1 out of every 5 Americans. More than 60 million retired and disabled Americans rely on Social Security benefits. Recipients include disabled workers, their spouses, and their children. In addition, four million disabled veterans, 2.5 million federal retirees and survivors, as well as 8 million Supplemental Security Income recipients are projected to receive this 0.3% increase.
Since 2008, the cost of living adjustment has been above 2% one time, in 2011. There have been three years that retired and disabled Americans have seen no COLA increase, and only once in the last 10 years has the increase been over 5%. With the added debt the United States is seeing, it is surprising that any type of cost of living adjustment will be made at all, even something so minimal.