Although speculation about increases in Social Security payments in 2018 may be a bit premature, considering we are barely past the half-way mark of 2017, it should be encouraging news to those who receive Social Security retirement and disability payments.
Social Security trustees recently announced that beneficiaries can expect a 2.2 percent increase in benefits beginning in 2018, which is the largest increase since 2011. Even though beneficiaries are unlikely to be jumping for joy at this news because a 2.2 percent increase would only mean about a $30 a month increase, any increase is helpful considering increases have been much lower or non existent in recent years.
Social Security increases are tied to inflation, which has been rather weak over the last few years. Social Security will officially release cost-of-living increases in October.
Trust Fund Projections
The trustees also announced that the disability trust fund is in better shape than it was a year ago. Last year the trustees projected the trust fund to be depleted by 2023, but this year’s projection extends the life of the trust fund to 2028. The combined retirement and disability trust funds actually increased by $35 billion in 2016. If the day comes when the trust funds are depleted because Congress did not act to ensure the agency could pay 100 percent of all benefits, there would still be enough money to pay beneficiaries about 77 percent of their full payments.
As we get closer to the depletion dates you are likely to hear more talk about ways to ensure that Social Security is healthy for years to come. Social Security’s Acting Commissioner, Nancy Berryhill, said the time for that conversation is now.
“It’s time for the public to engage in the important nation conversation about how to keep Social Security strong,” she said in a story published by USA Today.
