Thursday, October 23, 2014

Good News for Retirees

If you're retired, you'll see a little bump in your income next year. The Social Security Administration announced Wednesday that people receiving Social Security will get a cost-of-living adjustment of 1.7 percent for 2015. That reflects the modest increase in inflation over the past year.

The 1.7 percent is consistent with the increase we've seen in the past few years. The Social Security adjustment was 1.5 percent for 2014, and 1.7 percent for 2013. But in 2010 and 2011, as the economy struggled to emerge from the recession, there was no cost-of-living adjustment at all.

On the other hand, when the economy is stronger, retirees generally get more of a bump than this. In every year from 2004 to 2009, the adjustment was higher than this year's 1.7 percent - including a high of 5.8 percent in 2009.

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