Social Security Benefits May See Highest Increase in 2 Decades:

For those of you receiving social security benefits, you will probably see one of the biggest increases in 25 years because of the Cost of Living Adjustment (COLA). Many experts believe the index will increase more than 5% compared with the 2.3% increase in 2008.

The Social Security COLA is tied to the third quarter Consumer Price Index, which represents the cost of a basket of consumer goods and services. This increase will feel pretty good since some of the factors which go into this figure are down significantly like oil and other commodities.

But don’t spend the extra money too fast. You better save for that rainy day in case gas goes back up to $4 a gallon. I’m sure your Medicare premiums will also go up. And since Part B and Part D premiums are deducted directly from social security checks, you may see the big increase magically disappear.