RESOURCES
Social Security-
Smallest Increase in 4 Years
Social Security recipients will receive a 2.3% increase for
2008, the smallest in four years. The increase translates
to an extra $24 a month for the average retired worker.
This year’s increase is the smallest since a 2.1% increase
in 2004. The adjustment is based on the change in consumer
prices from July – September, compared with the same three-month
period last year. However, energy prices which were controlled
over the summer are projected to increase.
The small increase, according to advocates for the elderly,
underscores the need to revamp the cost-of-living adjustment.
Many believe the adjustment should better reflect prices paid
by seniors, notably the money they spend on health care.
“The anemic increase to social security for 2007 will make
the reverse mortgage programs of Senior Security Home Advantage
even more attractive to seniors on a fixed income,” according
to Joel Sanders, marketing director for Senior Security Home
Advantage, a lending program of United Northern Mortgage Bankers,
Ltd.
“A reverse mortgage can provide a senior with a safe supplement
to their social security and allow them safety from spiraling
costs,” according to Mr. Sanders.
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