Meager hike in Social Security benefits next year

Posted at 2:32 PM, Jun 22, 2016

WASHINGTON (AP) -- The trustees who oversee Social Security say millions of beneficiaries can expect a meager increase in monthly payments next year. Meanwhile, Medicare's finances have worsened.

The projected 0.2 percent increase in Social Security payments would come a year after beneficiaries received no increase. By law, increases are based on a government measure of inflation.

In the trustees' annual report, Social Security's trust funds are projected to run dry in 2034, unchanged from a year ago. If that happens, Social Security could pay only 79 percent of benefits.

The trust fund that supports Medicare is now projected to run out of money in 2028 -- two years earlier than projected last year.

If that happens, Medicare's fund for inpatient care would only be able to pay 87 percent of projected costs.