Each year, the Social Security Administration evaluates the cost of everyday items deemed as staples to survival. It adjusts the amount of money Social Security beneficiaries receive based on the fluctuations. This leaves many recipients wondering if they will receive a raise in benefits in 2014.
An article from PBS NewsHour explains several new factors that may come into play in figuring next year’s Cost Of Living Adjustment (COLA). The COLA is based on an average inflation rate on specific services and products. Now, President Barack Obama has proposed a “chained” Consumer Product Index (CPI) that considers that most citizens will substitute these products and services for cheaper options if the price becomes too high.
Under the old system, inflation rates over the last 12 months have been figured to be hovering around a 1.5 percent increase. If Obama’s new system calculates next year’s figures, the inflation rate will be around 1.4 percent.
This means that while recipients of Social Security Disability can expect a raise, it may not be as high as previously expected.
Newlin Disability and their team of Social Security Disability Attorneys recognize how complex the laws surrounding receiving assistance through Social Security can be. That’s why the firm suggests an individual discuss their legal options with an attorney if they are considering applying for benefits or have had a claim denied in the past.
