On October 16, 2008, the Social Security Administration (SSA) announced a 5.8 percent increase in income benefits for disabled people, affecting 55 million Americans. The increase is the largest cost-of-living adjustment since 1982, and amounts to an extra $63 per month for the average recipient.

Retirees and advocacy groups have pushed for the increase for years. Seniors relying on Social Security disability benefits find it difficult to adjust to higher prices on goods like gas and prescription medications. A recent survey conducted by the American Association of Retired Persons (AARP) determined that 59 percent of people aged 65 or older found it more difficult to pay for food, gas and medicine.

Some think the disability benefits increase may not be enough, however, when considering larger increases in other costs, like health care; certain Medicare premiums are estimated to increase by more than 20 percent.

Source: Michael S. Rosenwald, “Social Security benefits to rise 5.8 percent,” Washington Post, October 17, 2008.