Social Security to Rise 2.7 Pct. in 2005

WASHINGTON Oct. 19, 2004 � More than 47 million Americans will get a 2.7 percent increase in their Social Security checks starting in January, meaning an additional $25 per month for the typical retiree. But almost half of that gain will be gobbled up by a record increase in Medicare premiums.

The cost of living adjustment, or COLA, announced Tuesday by the Social Security Administration will be the largest percentage gain since a 3.5 percent increase in 2001. The increase last January was 2.1 percent.


abcnews.go.com...

The average Social Security retiree will see his benefit check increase from $930 this year to $955 next year.

However, the average retiree will also realize just over half of that increase because the government announced in September that monthly Medicare premiums for doctor visits will rise by $11.60 a month next year, a record in dollar terms.

It sounds like a good thing for the retiree's but if the cost of food, gas, utilities. and taxes keep going up they will have less, not more, and this raise won't be enough to keep them going. I don't see how anyone can live on social security alone, but I know there many 1000's of people who do!

You are right taking in consideration that they cost of living and medicare is in the rise, well is nothing to celebrate at all.

[edit on 19-10-2004 by marg6043]

I guess the baby boomers are getting ready to collect their social security. As far as I'm concerned $955 isn't enough.

I wonder how Bush's recent 'privatisation' comment is going to go down with the recipients?