2012 Social Security COLA Announced
When you're making plans for your retirement it is important to have a cogent and realistic understanding of the limitations of Social Security. You can't get into the head of every person who is unprepared for retirement, but it would be logical to assume that a high percentage of individuals have unreasonable expectations regarding how far Social Security will get them.
This figure will change constantly as people come and go from the Social Security rolls, but the Associated Press is telling us that at the present time the average monthly Social Security benefit is $1082. This is indeed an average and of course there are those who receive more than this amount, and married couples who are both eligible will receive two checks or direct deposits. But even at that you can see how an over reliance on Social Security could leave you wanting during your golden years.
The Social Security Administration states that approximately a third of the people who receive Social Security rely on it for at least 90% of their income. This is a pretty amazing statistic when you consider how modest Social Security benefits actually are.
Cost-of-living adjustments for Social Security recipients are tied to the rate of inflation, and there have been no increases over the last two years, but we will finally see a COLA in 2012. The amount of this increase is going to be 3.6%, so a senior citizen who is receiving the average benefit amount will receive an increase of around $39 per month.
Social Security is a basic safety net, but if you want to be able to retire someday and do so in relative comfort you're going to have to take some personal responsibility. If you plan ahead wisely there's no reason why you cannot accumulate the resources that you need to make your retirement vision a reality. To get started, simply get in touch with an experienced, licensed elder law attorney to arrange for a consultation.
ABOUT THE AUTHOR: Kevin Pillion
Experienced estate planning attorneys Sarasota FL of the Co-Executor PLLC offers estate planning and business planning resources to residents of Sarasota FL.
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Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.