October 21, 2015 -
Unfortunately, it isn’t soda pop that nearly 65 million Americans will have to go without. For the first time in recent years, the Social Security Administration announced that there will be no Cost of Living Adjustment (COLA) increase to beneficiaries’ checks. Retirees and disabled workers who depend on these benefits will have to stretch the dollar even further to cover the rising costs of health care, food, housing and other basic needs.
The COLA is set every year in October based on September’s inflation report. If prices don’t increase, Social Security benefits stay the same. Experts cite the surge in U.S. oil production as the reason for the decline in inflation. A lower price at the pump may be a good thing for working Americans, but many Social Security recipients do not benefit from this perk as they are no longer commuting to and from work. On a positive note, Social Security trustees project a 3.1% increase for 2017 but only time will tell if that comes to fruition. (source: https://www.ssa.gov/cgi-bin/bri.cgi)