Ohio Seniors See No Increase in Social Security Benefits
Cincinnati retirement planning lawyers know that many seniors struggle to afford the basic costs of living as they get older. Aging can bring with it many expenses, including the need for costly medical treatment. Most people can no longer work or wish to stop working as they get older and enter their retirement years. However, without smart financial planning done throughout the course of their lives, it may be very difficult for seniors to be able to pay the bills without money coming in.
While Social Security provides some guaranteed income for seniors, it is often insufficient to provide a reasonable quality standard of living. Just recently, The News Herald reported on Ohio seniors who were adjusting to the fact they would not receive any automatic increase in their Social Security benefits in 2016.
It is important for anyone who is working now to talk with Cincinnati retirement planning lawyers in order to determine what options are available to them for saving money for their retirement.
If you make smart choices when you are younger, you won’t have to worry about Social Security benefits providing the bulk of your income as you age. Seniors who want advice on withdrawing money and making their retirement savings last should also speak with an attorney for help. Zimmer Law Firm is here to provide invaluable assistance to all those concerned about their financial futures.
Ohio Seniors Brace for No Social Security Raise in 2016
News Herald reports that seniors, disabled veterans, and retirees were all left without an automatic benefits increase in 2016 as a result of the decline in gas prices.
Each year, an assessment is made on whether to adjust benefits based on the rate of inflation. The adjustment is referred to as the Cost of Living Adjustment (COLA) and the assessment on whether seniors should get an adjustment or not is based on whether the Consumer Price Index (CPI) increases or not. From the third quarter of 2014 through the third quarter of 2015, there was no CPI increase because lower gas prices drove the inflation rate down.
This is a big problem, however, because seniors do not generally get the same benefits of lower gas prices as younger people do. Seniors, who typically do not commute to work, do not do nearly as much driving as the population as a whole. As a result, the price of gas does not have as much of an impact on their financial situation other than the fact the decline in gas prices prevented a benefits increase.
The 2015 to 2016 year was the third time that there was no increase in Social Security benefits from year-to-year. All three of the years in which no raise occurred happened since 2010. This has a cumulative effect, as seniors have not seen their incomes go up much over the past half decade. Since 1975, increases have averaged around four percent annually, so the fact there have been no increases in benefits is very different from years prior. Even when increases have occurred, the increase has been well below average, at just 1.4 percent.
For seniors whose only income is Social Security or for seniors whose primary source of income is Social Security, the lack of a raise means it can become harder than ever to keep up with costs. Seniors who are facing issues with paying the bills need to explore opportunities to withdraw from savings but must be careful they do not take too much money out and jeopardize their long-term financial security.
Hopefully, many seniors will get help from Cincinnati retirement planning lawyers in order to protect themselves from facing financial hardship.
Contact a Cincinnati Retirement Planning Lawyer Today
Zimmer Law Firm knows that life can be very difficult when Social Security benefits do not provide enough income for you to live on. If you are older and living on Social Security benefits, we can provide you with help determining how to make any retirement savings you have stretch as far as possible.
If you are younger and still working, our Cincinnati retirement planning lawyers can assist you in setting retirement goals and in finding ways to build your nest egg so you have as much money as possible when you get older. This can include the use of tax-advantaged accounts like traditional and Roth IRAs.
To learn more, give us a call at 513.721.1513. We are committed to helping you grow and protect your assets and we provide advice to people at all ages and income levels. Give us a call now to learn more.