Starting in January, the 65 million Americans who rely on Social Security for their daily expenses such as food and gas will get an annual benefit raise of 0.3 percent.
The increase may not seem like very much. It is determined by cost-of-living adjustments calculated by the Social Security Administration.
Social Security benefits are adjusted each year in part based on inflation as measured by the Consumer Price Index for Urban Wage Earners and Clerical Workers, according to the agency. Gas prices have remained low, and that has affected the overall rate of inflation.
Certain interest groups such as AARP fight for the rights of people who need a Social Security.
“There’s a perception that people on Social Security drain the economy, but that is not the case,” AARP lobbyist Blanca Castro said.
When looking at the actual numbers, the benefits people on Social Security receive do not seem that much.
“In every state it’s a little bit different, but if you’re on Social Security the average benefit is about $1,200 each month. $14,688 would be the annual salary,” Castro said.
She acknowledged that the 0.3 percent increase isn't much.
“It definitely needs to be more, but it’s better than no increase at all.”
Last year, lobbyists at AARP launched a campaign called Take A Stand.
“It was a very critical way for us to keep Social Security benefits. We are going to continue with this campaign," Castro said.
Chico resident John Steeves, who lives at The Oakmont senior living center, noted how important the benefits are for the elderly.
“Being an old person and not being able to work, you depend on Social Security. And just a $10 a month raise, that is pretty good sometimes. That can buy your milk or whatever you want,” Steeves said.
Steeves said Social Security's most important benefit for him is helping with medical bills.
“If Medicare goes down, a lot of people are going to be hurting really bad because you cannot get Obamacare, so you might as well throw it out the window. Medical care for a lot of older people is really bad,” Steeves said.
Last year, there was no increase in Social Security benefits, which are paid not only to elderly people but also people who are at the working age and become disabled.
By Tom Sundgren
photo credit: creative commons