Posted on 12 Oct, 2016
Checks for 66 million beneficiaries will rise between 0.2 percent to 0.5 percent in 2017. That will result in an average retiree to experience an increase of $2.61 to $6.53 per month. Find out why Social Security checks expected to increase in 2017 is causing a stir among new reports from the American Institute for Economic Research.
The typical retirement benefit check is presently $1,305.30, CNN Money reports.
This is certainly the lowest growth of any year in which benefits increased.
In 2016, Social Security checks saw no increase. There have been just three years where no increase occurred since Social Security’s cost-of-living modification was put into effect in 1975 through 2010, 2011 and 2016.
During those periods, the decreasing price of gasoline has ad impact on ceasing inflation. This is the determining factor of Social Security.
It is important to note that the government of the United States will not make public the official cost of living adjustment until October 18.
The method utilized to estimate Social Security benefits is faulty to some extent, since retirees normally do not drive as much – and therefore use less gas – as current employees who travel to work. In addition, retirees usually devote a larger percentage of their wealth on health care, which has seen its prices increase faster than general inflation. Meanwhile, retirees are often negatively impacted by low interest rates, as many rely on savings for a proportion of their overall expenses.