Posted by: Heinz J. Brisske
Conjecture regarding the cost-of-living-adjustment (COLA) for Social Security recipients has been reported by various media sources for some time. The Social Security Administration just announced that, in fact, there will be no COLA adjustment for 2016.
This is only the third time in 40 years that Social Security recipients, disabled veterans, and federal retirees can expect no increase in benefits. Obviously, this is unwelcome news to approximately one-fifth of the nation’s population that receive such benefits. Only twice before, in 2010 and 2011, have there been no increases.
The culprit? Low gas prices. By law, the annual cost-of-living adjustment, or COLA, is based on a government measure of inflation, which is being dragged down by lower prices at the pump. https://www.ssa.gov/news/press/factsheets/colafacts2016.html