The 1.7 percent increase in the 2013 cost of living adjustment (COLA) for seniors, announced today, means about 60 million Americans receiving Social Security and Supplemental Security Income (SSI) payments starting in January will be squeezed in keeping up with bills, notes Grumpy Editor.
Latest COLA represents about half the 3.6 percent boost for 2012 that came after two years with no raises.
That translates to an annual average increase since 2009 of only 1.3 percent, hardly enough to keep up with higher costs for utility, gasoline, food, health-medical and most other bills.
The Social Security COLA is based on increases in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
Bureau of Labor Statistics (BLS) officials compare inflation in the third quarter with the same prior-year period.
Things could get even tighter for many retirees.
Some of the 2013 increase could be wiped out by higher Medicare premiums --- to be announced later --- that are deducted from Social Security payments.
Government projections indicate Medicare Part B premiums are expected to rise about $7 a month in 2013 from this year’s $99.90 for most seniors.
Medicare covers services, such as lab tests, surgeries and doctor visits plus supplies (like wheelchairs and walkers) considered medically necessary to treat a disease or condition.
The Social Security Administration says most retirees rely on monthly Social Security payments for 90 percent of their income.
Noteworthy this year is that today’s slim COLA for retirees comes exactly three weeks before Election Day.
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