Third Time’s Not The Charm For Social Security, No Increase Coming
The government is reportedly scheduled to announce the annual cost-of-living adjustment (COLA) on Thursday, but don’t hold your breath. There is good chance that it did not increase at all for the third time since 2010 and 2011. Meanwhile, Social Security determined a 1.7% COLA back in October 2014.Advertisement
According to a report from Associated Press, the announcement of the COLA will come along with the release of the Consumer Price Index for September. The COLA is determined using the government measure of inflation. And since the prices of gas have gone down, so has the COLA. Moreover, inflation has been significantly low this year. And thus, there is little hope that the September Consumer Price Index will help effect an increase for next year.
In fact, economist Polina Vlasenko, a research fellow at the American Institute for Economic Research, told Associated Press there is a good chance that the COLA will be zero this time around. This is because there needs to be some increase in prices, including energy, that should happen before COLA can be raised.
COLA is a big deal for a lot of Americans. As much as 70 million are reportedly affected by COLA payments. Moreover, the COLA directly affects benefits for as much as 4 million disabled veterans as well as 2.5 million federal retirees and retirees’ survivors. In addition, the COLA also has an effect on Supplemental Security Income, which is availed by more than 8 million people.
Meanwhile, there are as much as 60 million people who claim Social Security benefits. These include children, spouses, retirees and disabled workers. The average monthly payment is reportedly $1,224.