Social Security Increase Isn't Enough to Cover Rising Costs

Inflation at it's highest point last year was 10% and social security raised it payments to the country's older former workers 8.7%. Russell Gloor, the Social Security advisor to the Association of Mature American Citizens Foundation, says the increase was not high enough but was at least a step in the right direction. "Was it enough to offset the prices that we're actually paying? No, but it was probably better than we have had in probably 3 decades!"

Gloor says the biggest problem - which his organization is pushing for the Federal Government to fix - is how income taxes are charged on social security. "When those thresholds were first established - I figure around 8% of those people were collecting social security were actually paying taxes on those benefits. Now - I think it's closer to 50%!"

Certified Trust & Fiduciary Advisor, Chris Carosa says the Social Security cost of living adjustment is meant to ensure benefits keep pace with inflation. He agrees that 8.7% was only a good start. "Last year's Social Security Cost of Living Increase was lower than the actual increase that was 10% at its highest point." About the income tax matter, Carosa says, "Once you earn above a certain amount of money, the money that you saved all of your career is being taxed instead of given back to you."

The the average monthly benefit gained about $146.


Financial loss, conceptual illustration

Social Security covering less of inflated costs.Photo: Getty Images

Sponsored Content

Sponsored Content