Social Security Recipients Dissappointed

Social security recipients look forward to receiving an increase in their benefits every year. Many people were disappointed to find out that they only received a 0.3 increase in their benefits. Extra income can benefit anyone, but this social security benefits increase will not be enough to buy a gallon of milk. The low inflation rate is one of the reasons that the social security benefits increase was not much. The Cost of Living Adjustment affects 70 million people in America. The average person receives $1,238 per month. Most people's check will increase by less than $4.

The Medicare Part B Increase Will Destroy the Cost of Living Adjustment

Medicare Part B costs are increasing. This increase will be subtracted from people's social security checks. Fortunately, the Medicare Part B cost will not exceed the Cost of Living Adjustment. Most Medicare receivers are protected by the harmless hold measure. There are also regulations that have been put in place to make sure that people who receive Part B have enough money to cover 25 percent of the cost of the medical services.

Because of this regulation, many people will have to cover the cost of Medicare Part B increases. The Cost of Living Adjustment has not exceeded two percent since 2011. That is why it has been a long time since people have noticed a major difference in their check.

Many People Forced to use Retirement Accounts

Increases in premiums and reductions in the Cost of Living Adjustments is forcing many people to dip into their retirement savings account. That is why many people will end up running out of money a lot quicker than they expect. Retirement lasts 30 years for most people. Some people will not have enough money to last throughout their entire retirement.

This has upset many people. They think that the government does not understand how difficult it is for people to make ends meet. The government is quick to point out that the cost of fuel has decreased by five percent within the past year. However, they forget that the cost of health care has increased by over five percent.

If an elderly person does not drive, then they will not really benefit from the decrease in fuel costs. However, most of them are affected by the increase in health care costs.

The Cost of Living is Continuing to Increase

Many people are concerned because 30 percent of their check is going towards their home expenses. The costs of cell phones, internet and cable are high. People who are living on a fixed income will be affected even more by this cost of living increase. Social security is reducing its funding while the cost of living is increasing.

Utility companies and other businesses have to increase the costs in order to make up for the increase in operating costs. Seniors and other people who receive social security benefits often struggle to make ends meet. Fortunately, some seniors are lucky enough to get programs like Meals on Wheels. This will help offset the cost of groceries.

How Important is the CPI-W Variant?

Many people wonder what factors the government is using to calculate the Cost of Living Adjustment. They wonder whether the gas prices are the only thing that people use to determine the Cost of Living Adjustment. They determine the Cost of Living Adjustment by using the CPI-W variant. They take information from the Bureau of Labor and Statistics to calculate this.

The CPI-W Variant uses the cost of groceries, clothes, medical care, utility, schooling, cars and property upkeep to determine the Cost of Living Adjustment. A computerized program will analyze the average of the CPI-W Variant for the months of July to September. If the average increases, then the payout will increase. The payout will not change if the average decreases or remains the same. Because the averages from July and August 2016 were 0.3 percent, the increase will only be 0.3 percent.

People who receive social security want to get more money each year. While the social security benefits have not increased drastically, any increase will help people. However, when the Cost of Living Adjustment is trivial, people will still struggle to make ends meet.

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