Each year, the Social Security Administration evaluates the cost of everyday items deemed as staples to survival and adjusts the amount of money Social Security beneficiaries receive based on the fluctuations. This leaves many recipients already wondering if they are going to receive a raise in benefits in 2014.
An article from PBS NewsHour explains several new factors may come into play in figuring next year’s Cost Of Living Adjustment (COLA). Currently, the COLA is figured based off of an average inflation rate on certain services and products. Now, President Barack Obama has proposed a “chained” Consumer Product Index (CPI) that takes into account the fact 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 is used in calculating next year’s figures, the inflation rate is 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.
Fleschner, Stark, Tanoos & Newlin and their team of Social Security Disability Attorneys recognize just 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.