"Right-sizing" Social Security Benefits

This week the Social Security Administration announced the Supplemental
Security Income (SSI) benefits for more than 65 million Americans will
increase 0.3 percent in 2017, an average of $3.92 per recipient and tied
to the Consumer Price Index as determined by the Department of Labor’s
Bureau of Labor Statistics based on low inflation of  select expenses.

However,  the Senior Citizen League, http://seniorsleague.org/ , is critical
of the methodology used to determine the increase, stating it is based on
spending habits of younger workers, not on the expenses of older, retired
recipients.

Additionally, even though health insurance premiums are expected to rise
dramatically on January 1st, SSA did not factor this into the percentage

approved, meaning a $3.92 increase would be over-shadowed by insurance
premium increases of $30, $40 or even $100 per month.

The Social Security Administration needs to do what all other government
agencies do, budget its expenses, which SSI benefits are, based on expected
cost increases on what the Consumer Price Index uses.

If this was done this year the benefit increase could be higher, perhaps 4%
to offset some of the expected 10-20% increase in Medicare Part B.

Retirees should not have to dig into their savings or see their discretionary
spending dollars reduced due to the lack of foresight by the Social
Security Administration.


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