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Social Security’s Average Monthly Benefit Hits a New Milestone - Benzinga.com
The month of May is expected to see the average monthly benefit for retired workers reach the $2,000 level for the first time in history. For a quick comparison, the average benefit at the same point in 2015 was $1,363, meaning that the monthly payout for retired workers has increased by more than 46% i a ten-year span. That’s great news, right?
Well, as indicated in a report posted by Benzinga.com, the increase results from “…rising wages, new retirees entering the system, and run-of-the-mill cost-of-living adjustments.” So, it’s inflation driven, and according to The Senior Citizens League, the basic spending levels of seniors have lagged behind living expenses facing folks in retirement. Couple that with the oft-reported inadequate savings levels achieved by those reaching retirement, and further aggravated by the possibility of substantial benefit net reductions for seniors having outstanding college loan balances, it’s not a very nice situation for many. And there’s the looming–and unaddressed–insolvency issue adding more worry in the monf=ds f those dependent on Social Security for survival.
Read the Benzinga.com post here, and then check out the AMAC Social Security Guarantee proposal for a look at what one forward thinking group has to say about fixing the long term problem.