Congress has announced the Social Security raise for the 2017 year. Although larger than last year, which saw no increase, the raise is paltry and will leave most, if not all, Social Security recipients frustrated. For the upcoming year, the increase in Social Security benefits will be just 0.3%. That means that a beneficiary who receives $1000 per month (before any Medicare deductions) will see an increase in their payouts of only $3. It has not been disclosed as of yet whether or not there will be an increase to Medicare Part B premiums, but experts say that an increase is expected. What makes this even more disappointing is that there was no increase for 2016. The Social Security cost of living adjustment (COLA) is supposed to offset inflation. On paper, this increase of 0.3% over two years might be equivalent to the rate of inflation, but a conversation with virtually anyone on Social Security will yield a different answer. Hopefully our seniors can see a larger increase in 2018 as many are living with Social Security being their sole source of income.
Here is a link to the Social Security page regarding the 2017 COLA.