WASHINGTON, D.C. — Social Security payments are expected to go up for most Americans — but not by as much as some had hoped.
The typical retiree is expected to see a $12 to $14 bump in Social Security payments come January. Preliminary figures show the Social Security increase for 2013 could be the lowest since 1975. A 1% to 2% rise is expected, compared to the 3.6% increase recipients saw this year.
Next year’s number is tied tightly to inflation. The cost-of-living adjustment is said to reflect the less than 2% rise in consumer prices over the past year, but wealth manager Ed Butowsky says that’s not an accurate portrayal of the economy.
“Because the economy is so bad, because things are so bad in this country, the government can’t keep up with the cost-of-living increase. This is a disaster for everyone living on Social Security,” Butowsky said.
Social Security reform has been a major issue this election season. While President Barack Obama and Mitt Romney are facing tough scrutiny over their plans to save the program, former CBO Director Doug Holtz-Eakin says this latest news hits the President the hardest.
“To the extent they look at that check or the check they are likely to get in January and they are dissatisfied, they are likely to point to the incumbent and say ‘wow this isn’t any good. Let’s try the next guy,'” Holtz-Eakin said.
Questions regarding the future of Social Security are sure to resurface Tuesday night, October 16th when President Barack Obama and Mitt Romney come fact-to-face with voters in the second presidential debate.