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Social Security checks on the Rise in 2005 More than 47 million Americans will get a 2.7 percent cost of living adjustment (COLA) in their Social Security checks starting in January 2005. For the typical American Retiree it amounts to about $25 each, although approximately half of that will be consumed by a rise in Medicare premiums. The COLA from the Social Security Administration will be the largest percentage gain since a 3.5 percent increase in 2001. The increase given to retirees in January 2004 was 2.1 percent. Government sources identified higher then expected inflation as the reason for the sizable increase. Retirees on Social Security will see the average benefit check rise from $930 this year to $955 in the year 2005. The average retired couple will see their Social Security benefits rise from $1,532 a month currently to $1,574 next year, an increase of $42 monthly. Half of the COLA will go to cover a record increase in the monthly Medicare premiums for doctor visits, which will also rises by $11.60 each month in 2005. Under law, Medicare’s monthly premium increase cannot be higher than an individual's cost of living adjustment. That means that those getting a COLA below the $11.60 Medicare increase will not be forced to pay the entire Medicare increase. Democratic legislators are pursuing legislation that could cap the Medicare premium increase to no more than 25 percent of a retiree's cost of living increase. -Winter 2004-05 Issue