Seniors to get small Social Security increase in 2014

The cost-of-living adjustment in Social Security for 2014 is likely to be very small, marking the fourth year in the last five that recipients receive little or no increase in benefits.

Social Security benefits are expected to rise between 1.4% and 1.6% next year, according to the American Institute for Economic Research. That follows a 1.7% increase in 2013 and no increases in 2010 and 2011. A 3.6% adjustment in 2012 has been the only significant rise in benefits in recent years.

The increases have been small because inflation has been tame. But it's not clear that these adjustments really cover the increasing costs faced by retirees, who have different spending habits than the overall population.
For example, seniors spend more on health care than the younger population, and government figures show the cost of medical care rose 2.5% over the past year. Read More.