Reflecting record high prices facing American consumers, a 5.8 percent cost-of-living adjustment (COLA) for Social Security beneficiaries was announced today. The AP reports:
The 5.8 percent increase announced Thursday by the Social Security Administration will go to the 50 million Americans receiving benefits. It is the biggest jump since the 7.4 percent of 1982. The $63 typical monthly increase compares to the $24 advance that retirees saw in this year’s benefit checks, an increase of just 2.3 percent and the smallest in four years.
The typical retiree’s monthly check will go from $1,090 to $1,153.
Speaker Pelosi on the announcement:
While all families are facing skyrocketing prices at the grocery store, the gas pump, and on their heating and cooling bills, seniors on fixed incomes have an even more difficult time making ends meet. By providing a nearly 6 percent increase in their Social Security checks, seniors will receive needed relief from high prices.
In light of the recent record losses on Wall Street, America's seniors are grateful that Congress rejected President Bush's risky Social Security privatization scheme. Seniors and those nearing retirement should not be forced to gamble their Social Security safety net on risky privatization plans when Wall Street operators are dealing the cards. Thankfully, America's seniors can continue to rely on the rock solid promise of Social Security even in the most difficult economic times.