Social Security benefits to go up by 1.7 pct.
WASHINGTON (AP) — Millions of older Americans who rely on federal benefits will get a 1.7 percent increase in their monthly payments next year, the government announced today.
It's the third year in a row the increase will be less than 2 percent.
The annual cost-of-living adjustment, or COLA, affects payments to more than 70 million Social Security recipients, disabled veterans and federal retirees. That's more than a fifth of the country.
The increase amounts to about $20 a month for the typical Social Security recipient.
"The COLA helps beneficiaries of all ages maintain their standard of living, keeping many from falling into poverty by providing partial protection against inflation," said Jo Ann Jenkins, who heads AARP.
The government announced the benefit increase when it released the latest measure of consumer prices. By law, the increase is based on inflation, which is well below historical averages so far this year.