Government boosts Social Security payments by 2 percent

The Social Security Administration on Friday announced a 2 percent increase in payments to retirees and disabled veterans, the biggest boost since 2012. But the increase only will amount to about $25 a month for the average beneficiary. Critics say that’s not enough to cover cost-of-living increases, especially for healthcare. Others argue it’s too generous because people can always adjust their buying habits with cheaper alternatives to most things. The average Social Security payment is $1,258 a month, about $15,000 a year. The annual cost-of-living increases are mandated by a law passed in 1975. The Bureau of Labor Statistics determines the amount based on a broad measure of consumer prices. The last eight increases have averaged just over 1 percent, but in the previous 10 years, the average came in close to 3 percent. Nearly 1 in 5 U.S. residents, about 70 million people, receive Social Security payments.