Starting in 2009, retirees will get a well deserved raise in their Social Security Benefits Older Americans are slated to receive a 5.8% increase on their Social Security benefits starting in the next year. According to AARP, this will be the large hike of those benefits in over 26 years.
Highest Raise in over 26 years
At 5.8 percent, the 2009 cost of living adjustment is the highest since 1982. The reason for this, AARP says, is rising inflation. On a more positive note, the standard Medicare premium for 2009 will remain unchanged from $96.40. Premiums will rise only for single people earning more than $85,000 annually, or for couples earning more than $170,000.
Is Social Security Raise Enough?
The raise couldn’t have come at a better time as retirees have seen their retirement nest eggs cracked in the past year. Many feel that that the raise has come too late. In a study by the Senior Citizens League, individuals 65 and over have lost 51 percent of their buying power since 2000. Hopefully, with the decrease in oil prices, that should help costs at the pump.
About 50 million Americans collect Social Security benefits. This year marks the first year baby boomers will collect on those benefits. Currently, the average monthly payment for retirees is $1,090. In January it will rise to $1,153.