Recipients to get 4.1% increase

The average monthly check will increase from $963 to $1,002.
WASHINGTON (AP) -- It's no lottery jackpot, but seniors say the extra $39 a month in Social Security benefits they'll start getting in January is a welcome addition.
"It will help pay for the gas," said 75-year-old Grace Bryan of Monroe, Ind., who has already dropped out of an exercise class to save money on fuel.
"It's something. It's going to pay for probably the telephone bill," said Murray Levine, 86, as he maneuvered a shopping carrier full of groceries in downtown Philadelphia.
The Social Security Administration announced Friday that their cost-of-living adjustment, or COLA, for more than 50 million beneficiaries would increase 4.1 percent in January. That's the biggest jump since a 5.4 percent gain in 1991. Last year's increase was 2.7 percent.
The average Social Security check will increase from $963 to $1,002 in January.
Rising energy prices, including a record-breaking surge in September, were the driving force behind the big cost-of-living increase, which is based on changes in the government's Consumer Price Index. The inflation figure rose 1.2 percent in September, the biggest monthly increase in a quarter-century, mostly because of a huge hurricane-linked rise in energy costs.
How they'll spend it
Dean Swafford, 92, a retired farmer in Rayville, Mo., said the additional Social Security money would go to paying his heating bills. "Everything that we buy has gone up so fast," he said. "The extra money will be spent, that's for sure."
Olga Callaghan, 82, a retired secretary who was taking a swim class at the downtown Los Angeles YMCA, said she was secure financially but worried about seniors with fewer resources.
"I'm fortunate that I don't have to stint on my medication, but for people who have to, it makes you cry," she said.
About one-fourth of the monthly Social Security gain will be eaten up by a rise in Medicare premiums, which will grow by $10.30 per month starting in January.
In addition to the higher premium for Medicare Part B, Medicare recipients who decide to take advantage of the new prescription drug benefit will start paying a premium of around $32 per month in January. The amount will vary depending on which plan they choose.
President Bush had hoped to get Congress this year to pass a Social Security overhaul he viewed as the centerpiece of his second term. It would have bolstered Social Security finances to deal with a looming funding crisis when 78 million baby boomers begin retiring and have allowed younger workers to create personal accounts. However, the measure has failed to attract widespread support in Congress.
Range of adjustments
The cost-of-living adjustment announced Friday will go to more than 52 million people. More than 48 million receive Social Security benefits and the rest Supplemental Security Income payments, aimed at the poor and disabled.
The average retired couple, both receiving Social Security benefits, will see their monthly check go from $1,583 to $1,648. The standard SSI payment will go from $579 to $603 per month for an individual and $869 to $904 for a couple. The average monthly check for a disabled worker will go from $902 to $939.