WASHINGTON — Social Security benefits for nearly 50 million people will rise 2.3 percent starting in January, the smallest increase in four years. The typical retiree will face the challenge of using the extra $24 to cover higher costs for necessities such as gas, food and medical care.
The new cost-of-living figure announced Wednesday by the Social Security Administration means the typical retired worker’s benefit check will go from $1,055 per month to $1,079.
The increase is the smallest since a 2.1 percent boost in 2004 and is a full percentage point lower than the 3.3 percent adjustment for 2007. In 2006, benefits rose by 4.1 percent, the biggest gain in 15 years.
The adjustment is based on the change in consumer prices from July through September compared with the same three-month period last year.
Next year’s cost-of-living increase will go to more than 54 million people. Nearly 50 million receive Social Security benefits; the rest get Supplemental Security Income payments for the poor.
The monthly check for an average retired couple receiving Social Security benefits will go from $1,722 to $1,761, an increase of $39.
