Seniors may receive some welcome news that the amount of their Social Security checks may increase.
The methods used by the federal government to determine the cost of living adjustments for Social Security are not an accurate reflection of the purchasing power of recipients. However, that may soon change, according to Barron's in "Big Social Security Bump Could Be Coming."
Early signs indicate that a benefit increase of 2.1% is coming next year.
That is good news for seniors who have seen their benefit dollars pay for fewer and fewer of their expenses.
The bad news is what that might mean for the health of the Social Security system itself. It needs to be adjusted to make sure the Social Security Trust Fund does not run out of money in the next couple of decades, which would result in automatic steep benefit cuts.
Benefit increases are only expected for now.
Reference: Barron's (June 6, 2017) "Big Social Security Bump Could Be Coming."