No Cost-of-Living Adjustment for 2016
Reading Time: 1 MinuteLast Updated: March 17, 2021
Social Security’s annual cost-of-living adjustment (COLA) is an increase in the benefit amount people receive each month. By law, the monthly Social Security and SSI federal benefit rate increases when there is a rise in the cost of living. The government measures changes in the cost of living through the Department of Labor’s Consumer Price Index (CPI-W).
The CPI has not risen since the last cost-of-living adjustment in 2015. As a result, your SSI benefit rate and, for most people, your Social Security benefit amount will stay the same in 2016.
This news isn’t necessarily bad. When inflation stays at the same rate, your cost of living also stays the same. Prices for goods and services, on average, haven’t increased enough to affect the COLA.
Other changes that would normally take effect based on changes in the national average wage index also won’t begin in January 2016. Since there is no COLA, the statute also prohibits a change in the maximum amount of earnings subject to the Social Security tax, as well as the retirement earnings test exempt amounts. These amounts will remain unchanged in 2016. The new fact sheet provides more information on 2016 Social Security and SSI changes.
For additional information about the 2016 COLA, go to www.socialsecurity.gov/cola.
For additional information about changes in the national average wage index, go to www.socialsecurity.gov/OACT/COLA/AWI.html.
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Tags: Cost of living adjustment, Disability, Medicare, SSA, SSI
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Jim Borland, Assistant Deputy Commissioner, Communications
Jim Borland, Assistant Deputy Commissioner, Communications
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G.Dennis
Social Security was not enacted to provide a sole source of income for anyone. The federal government taxed the employed and used that money to fund the Social Security (SS) program. This income is a supplement to your personal retirement plan. Poor planning, no planning, life’s hardships, and inability to read (and/or comprehend), about the SS program, caused many people to rely on the SS program as their sole source of income. Knowledge is power! Any person who planned to rely on the SS program as their sole source of income, need to learn to live within their means, as this is your lot in life. If you are having a difficult time paying for medications, apply for Social Security, Extra Help, which will lower the insurance premium and medication rate if you qualify. Drug Manufacture’s, will also offer discounts, if you are unable to pay for your RX, and the need for this medication is verified by your MD. The Medicare B premium can be subsidized by Medicaid QMB or SLMB program if you qualify. Contact your local Area Agency on Aging for additional information regarding, source(s) that can assist you in lowering cost…..
Bill
Well if knowledge is power your one weak as hole ! Some had no choice , boy it’s creams like you that trip my trigger ! I was forced to quit work and draw disability because of medical reasons you self indulgent federal worker !
Amy
All I know is Jesus is coming soon! If you don’t see the signs all I can say from a sincere heart is please start reading your Bible. Why do you think all of this is happening to our country? We have took God out of everything! All of the people who our in our government don’t look to him for advice they look at themselves and what they want and all they are about is greed and that is why America has went down like it has in the last 15 years. God will only put up with so much! I am not wanting to be here when his wrath comes on this world. Last time he came as a helpless babe . I can promise you he will be anything but that when he comes next ! Please run to his grace and love before its to late and then you won’t worry about this temporary world
poorman
I am glad I have a private pension along with the social security I get because being on social security by itself is like being poor, but not like the poor that get benefits for being poor. I get close to $3,000 a month total and that isn’t enough as most people would think.
Albert
How about the Government providing SNAP for one year to those that won’t get a COLA raise since we have to eat and food isn’t cheap, if you have to pay cash. Life is expensive for retirees and sometimes they may think we should have been poor all of our life, and we would be better off like most poor people.
sirMAXX
This makes no sense, the cost of everything, from food to utilities have gone up. Some people want to eat healthy too and don’t want to be forced to live off instant noodles and powdered drinks, just to have something saved at the end of the month. Fresh produce is expensive, there should be relief, or some kind of additional aid to people that eat a regular, healthy diet. I wouldn’t care if it requires mail receipts as proof, I keep all my receipts anyways.
Len
We all know the illegals should not be here, should not be getting the American benefits…that’s why they’re called illegals!! What I want to know is why when you can’t draw enough off SS and you HAVE to work you are penalized by either not getting your SS or have to pay it back!!! It’s our money…we paid it in…so why does anyone else determine our distributions, etc. Also I now have to pay for medicare $150 month with out prescription coverage when my retirement was paying 100% of premiums! Makes sense to me…duh. Our golden years are now more of a prison…we don’t have enough money to live let alone ‘do or go’ anyplace to enjoy those misnomer “Golden Years” which should now be called the ‘Tarnished Years’! I love our country but discrimination is now in reverse and against Americans and the elderly and veterans. I love it but am ashamed of our politicians.
Linda C.
why if the cost of living didn’t go up did the congress vote themselves a pay raise…we need to make sure every one of these people who voted no pay raise do not get reelected…where can i go to email each one of these guys and start a campaign to not get them reelected….the other review is correct cost of living not up!!!!! tell that to may bank account the one that pays for higher utilities higher food costs…higher insurance premiums…bologna..please post names or tell me where to go to find them….it’s a disgrace that a country who spends billions on other countries…and on welfare recipients that intentionally stay on welfare their entire lives who are able to work..throws their seniors under to bus…what a country to be proud of….
Rachelle R.
How dare the Social Security Admin. eliminate the COLA FOR 2015. What a disgrace! Stop fraud! Also look at the unbelievable high cost of pharmaceuticals these poor seniors are paying ( or not buying because they can’t afford them) For SHAME SSA
James
Why is gasoline a factor when they don’t pay many people enough to afford a car.
MMC
People make so many generalizations & comparisons without realizing that the rules to qualify for these programs can be VERY different. For example, some programs vary from state to state…Obama Care is funded in one of three different ways depending on the state in which one resides in: it may be funded by the state, the feds or a combination of the two. Furthermore, a handful of states have their own medi-caid programs that are handled by the state & not the feds (not to be confused with medi-care). Another point that is often overlooked is that there are asset limits on SSI. For example, to qualify one can’t have more than a given amount in a savings account (I believe it’s around $2000). In addition, there are often variations in a given type of program that can make comparisons highly inaccurate. In the state of CA, for example, there are 100’s of different Medi-Cal programs (ie CA’s version of Medi-Caid). Each program has it’s own criteria to qualify…there are programs for the blind, deaf, pregnant people or disabled individuals who work & make less than 250% of the poverty level (which gets adjusted by the way). Also, when speaking about programs for the disabled….some are for people who are totally disabled & others are for people who are partially disabled. Moreover, the way that a disability is defined, be it partial or total, can be different from one organization/entity to the next. People also don’t often realize that SSI is a NEEDS based program….it is NOT based on what one has paid into the system (ie INCOME based; which is what constitutes SSDI & the social security retirement programs). Please don’t be so quick to judge unless you know what the rules are for a given program….sometimes it’s easy to compare apples to pears without realizing it! Given all the differences, I think it is far too complex to make generalizations or to have a blanketed approach to solving all the issues at hand. Believe me, I feel the pain of everyone here but how do we solve something so broad & complex with one approach? I have to ask, is that even realistic? Think about it, every reference being made here could be pertaining to programs with entirely different rules…be it immigrants, retirees, disabled people, people on low income, housing vs insurance, etc. etc. Perhaps we all need to back up & take one bite sized piece at a time….as daunting as that seems, & it is for that matter! I just don’t think it’s possible to clump everything together in the manner that is the usual approach. How about we re-frame the discussion with these things in mind? We need to clearly define the problem, look at the rules for a given situation & THEN brainstorm solutions based on where things stand & what the objective would be for improvement. Addressing things in a random or blanketed approach is clearly ineffective. Just my two cents. I don’t claim to have all the answers by any means but I think we need to take a much closer look at the approach being taken when we enter into these discussions & to be clear so that we’re discussing the same issues with respect to a given program or population.
Bill
Your right , anyone who did not pay in should not get anything ! When your parents die you don’t get their credit score , or their house , or their money ! But if they die you get social security ! For a whole lot of reasons you can get it and never pay in ! The major screw up is allowing people to receive some of the monies in witch they have no stock in !