According to the Social Security Administration, in 2015, the average American will receive $1,328 a month, or, $15,936 a year in social security benefits. The administration announced that starting in January, more than 58 million recipients will see a bump in their monthly checks.
Monthly benefits will increase 1.7% which translates to roughly an additional $22 per month for the average recipient. The annual COLA (Cost of Living Adjustment) change is tied to the Consumer Price Index. Inflation in the near-term has remained tame, which has resulted in the third straight year that the increase has been less than 2%.
Despite the modest raise, seniors still face sharper increases in healthcare, utilities and grocery bills. These increasing costs highlight the importance of having multiple, growing sources of income in retirement. Owning dividend aristocrats (S&P 500 companies that have increased their dividend payouts for 25 consecutive years) can be an excellent way of building a growing stream of income over time.
Social Security has over 2,800 rules and there are thousands of various investments to choose from--for advice on maximizing your sources of income, please don't hesitate to ask.
Ethan Wade, Financial Advisor
(This article contains the current opinions of the author but not necessarily those of Brighton Securities Corp. The author's opinions are subject to change without notice. This blog post is for informational purposes only. Forecasts, estimates, and certain information contained herein should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. References to specific securities and their issuers are for illustrative purposes only and are not intended and should not be interpreted as recommendations to purchase or sell such securities)...