Social Security Retirees Will Get Just $4 More Per Month Next Year

The federal government won't be doing much extra for people on Social Security next year.

Checks to the more than 65 million Americans who depend on the funds will increase by just 0.3 percent in 2017. That will mean about four more extra bucks a month for the average retiree, equal to a whopping 13 cents per day. The average disabled worker will get about $3.50 extra a month, 11 or so cents per day.

The annual Cost-Of-Living Adjustment (COLA) is tied to the Consumer Price Index and determines how much more money Social Security checks will get — if any — from year to year. The Social Security Administration announced Tuesday the COLA for 2017.

The $4 is still higher than last year, when payments didn't rise at all.

The current annual inflation rate is 1.5 percent.

September's Consumer Price Index (CPI), which is a factor in measuring monthly inflation, was 0.3 percent. That number was driven largely by rising fuel costs, which increased nearly 6 percent last month.

The increasing inflation could be a factor for the Federal Reserve to consider when deciding whether to increase the federal interest rate in December for just the second time since the 2008 economic downturn.

MNI News