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Social Security Benefits Will Get Small Cost-Of-Living Bump For 2013

Wednesday, October 10, 2012 - 6:46 AM
From CNN Money via Yahoo Finance:

Next week the Labor Department will release its September inflation reading on Oct. 16, which is the final of 12 readings used to calculate the cost of living adjustment made annually to Social Security benefits.  The calculation is also used to raise the ceiling on wages subject to payroll taxes.  Unfortunately, seniors don't typically have the same spending patterns as younger workers, whose purchases are more closely tracked by the government's inflation reading.
Social Security recipients will get less than a 2% increase in their benefits next year to account for a rise in cost of living, according to an estimate published Tuesday. That's less than half the increase in benefits they received in 2012.

... Steven Cunningham, director of research and education for AIER [American Institute for Economic Research], said that the increase will not be enough to cover the actual rise in costs faced by many seniors, who receive the overwhelming majority of Social Security benefits.

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