Social Security Recipients To Receive Increase In Payments
October 19, 2011
The federal government announced Wednesday that recipients of Social Security benefits would see their first increase in payments in two years. According to Channel 9 News, beneficiaries will see the extra money beginning next year.
The 3.6 percent increase was determined after the government calculated the rate of inflation over the past 12 months, and found a cost of living adjustment (COLA) was needed. Because of this, some 55 million Social Security recipients, along with another 8 million people who receive Supplemental Security Income, will see the bump in payments. These numbers show that 1 in 5 Americans will be affected by the decision.
This will be the first payment increase since 2009, after two years of lower inflation rates that kept the government from deeming it necessary for a COLA. Those two years were the first time since 1975 that a COLA was not granted for recipients.
Even with the payment increases, many critics say that the rising cost of Medicare will void out any payment increases received. With an average payout of $13,000 per year, the increase only means an additional $468 per year.
The Louisiana Social Security Disability Attorneys with Dudley Debosier Injury Lawyers want to know your opinion on the COLA determined by the federal government. Are the increased payments going to truly put more money into the pockets of recipients or will they just be counter-balanced by other rising costs, such as Medicare? Tell us what you think by posting on our Facebook page.
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