Social Security Benefits to Increase 1.7 Percent in 2015
The Social Security Administration announced Oct. 22 that in 2015, monthly benefits for nearly 58 million American Social Security recipients would surge 1.7 percent for the cost of living (COLA).
As of Jan. 1, 2015, this means next year's annual cost of living has risen from 1.5 percent this year with the average retiree now obtaining a $22 increase to $1,328 a month ($15,936 a year), while the average senior couple will receive a $36 increase to $2,176 ($26,112 a year).
With the upturn of the Consumer Price Index, which makes adjustments for Social Security payments and processes the government's inflation, this also translates into a maximum monthly Social Security check for a single baby boomer retiree collecting benefits has now increased to $2,663, up $21 for 2014. Beneficiaries accepting Supplemental Security Income will see a growth beginning Dec. 31.
Still, this is less than 2012's increase of 3.6 percent, which saw seniors receiving zero increases to their benefits for two years prior in the wake of the 2008-2012 global recession.
The majority of those that rely on Social Security, however, are struggling to stay afloat with nearly 10 percent of people 65 and older living in poverty across 49 states in U.S. and living on an average of only $37,847 a year. Furthermore, provided that seniors no longer commute to work during the week, it is unlikely they will reap the benefits of the 3 percent drop in gas prices as measured by the CPI. It is also important to signify that the U.S. Census Bureau reports that minorities and women are far more likely to struggle.
The Social Security Administration also publicized that based on an increase in average income, taxes will rise from $117,000 to $118,500 in 2015.
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