Today the Social Security Administration will announce the biggest cost-of-living increase in decades. Since it's pegged to the Consumer Price Index, it could be as much as 9%. Monthly benefits checks should grow by about $140 for retirees, $70 for spouses of retired workers, $113 for those receiving survivors’ benefits and $115 for disabled workers.
The increase, although it begins in January, will be applied to the final December benefit check.
The good news is, COLA increases are permanent -- and they compound. That means the following year’s percentage increase, whatever it ends up being, will be on top of the new, larger payment beneficiaries get after this most recent raise -- 5.9%, which was the biggest in nearly four decades.
Inflation being what it is, it won't be "extra" -- but it should help seniors keep up with corporate price-gouging more than they can now.
