Social Security Increase Smallest in 38 Years

Smallest Hike for Social Security Recipients in Kentucky Since 1975

Greg Stotelmyer at Kentucky News Connection sent that info out this morning. As a recipient, I knew it would be low. I am employed and don't need every bit of my social security to survive but many people do. Benefits will rise 1.5% next year.

According to National AARP President Rob Romasco, that's the smallest increase since 1975, but it would be even lower if there were changes to how the cost of living is calculated, as some in Congress have proposed.

Romasco says, "If the chained CPI were in effect, that would be 1.2 percent. That's a 20 percent decrease in your benefit increase and over time that compounds," he warned. "So if you retire at 65, by the time you're 90, you'll have experienced thousands of dollars in fewer benefits over that time."

Current projections have Social Security staying solvent for about 20 more years, so Romasco said there needs to be a conversation on how to keep the program operating and strong for the future. But, he said, since American workers are the ones who have funded Social Security, it should be a separate discussion, not part of any debt talks.

The same thing is true - according to Romasco - for Medicare. Workers and employers also help fund that program that is being squeezed by the high cost of medical care in America.

There are just under a half-million Kentucky retirees on Social Security. This may not be of any concern to you personally but if it is, there are petitions you can read and sign here.