The 1 in 5 Americans receiving benefits from Social Security will see a 2% boost in their payments next year.
Whether this is viewed as good news or bad is a matter of perspective and playing with numbers. Viewed as glass half full: 2% is better than the miniscule increase for 2017, which in itself was better than the 0% raise for 2016.
Glass half empty: 2% is far below historical levels and is reflective of the lack of inflation in the overall economy. For instance, the average increase in the 80s and 90s was over 4%.
Anyone tempted to pop the cork on their Dom Perignon in celebration should also remember that, just as inflation has worked to increase the SS benefit, that same inflation will work to increase the Medicare Part B premium. Sigh