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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Endearingtones
Is this population control? Being disabled is difficult enough. I suppose those receiving retirement benefits and disability benefits are just the easiest targets. We often make the decision of medicine or food. The calculation for COLA is outdated. It is nice that the decisions and calculations have no bearing on those in control. This is not representing ‘the people’.
Barbara
The fat cats have not represented the people in…forever!!
Endearingtones
So very true and thus my statement.
Terry B.
Cost of living is up all over the place and you come up with lame excuses as to why there is no COLA. Most of us are not that stupid. Interesting that you did not mention Medicare for 2016 which will be going up. So it’s a double whammy.
BHarrell
And even if Medicare rates don’t go up, they usually raise the DEDUCTIBLES. Lots of people don’t realize that.
cdg
The CPI used by Malevolent Big Bother is not indicative of the cost of essential goods. Food, clothing, shelter, utilities transportation and medical have skyrocketed about 30% this year. The third quarter cost of gasoline is irrelevant. Seniors do relatively little driving. This is double-speak to avoid the 25-30% increase it would take to retain the same standard-of-living as last year. Meanwhile, MBB wastes billions providing benefits for illegal aliens and Muslim “refugees”, not to mention Obama’s entertainment.
Barbara
TRUE!!
Bill
Another Amen!
Jim B.
Good point on Seniors doing very little driving. Some do not even own a car. Some can not afford to own a car. The gas price input into this calculation should be removed and see what the cost of living change would be. That is what affects probably 75% or more of the Seniors. They can make the figures say whatever they want them to say. The government needs more money for Obama to give away, figure out how to stop COLA this year. As the old saying goes, “figures lie, liars figure.”
BHarrell
You got that right! Apparently they use data from working class people to figure the CPI. But that logic is flawed and out of phase with retired and non-working people. Plus, the averages they use is historical – not current. We must not forget how the SSA was funded – we paid it in, and they decide how to pay it out! Like so many of the decisions made by the feds, WAY out of touch with life on main street.
BHarrell
You’re right about gasoline and oil prices too. Not applicable to folks like me who drive a 20 year old car and average less than 2000 miles per year! Can’t afford a new car. Can’t afford to go anywhere.
Cathy R.
I would love to see all politicians (including the President) live on Social Security. I don’t mean along with their “forever salaries” but ONLY the average Social Security!
Barbara
RIGHT!!!
BHarrell
Ha! Me too. They can’t even get by on their present salaries. Didn’t I hear Hillary say the other day she was “broke” and having trouble paying for their two multi-million dollar homes?
Barbara B.
Ummm….health insurance premiums up, car insurance up, home insurance up, etc., etc. Those that determine COLA increases must live in a “special” place….
Dav
Would appear folks don’t believe this stuff ! Wonder why ? All you political hopefuls better figure out WHY ! !
BHarrell
Or should we say, those who determine the CPI that the SSA uses to calculate COLA live in a ‘special place’ (or on a special medication)!
Ron m.
If you do not add food,and fuel cost into your CPI,then there are no increases in inflation.
But in reality,inflation is real.All government agencys
find a way to make life look great.try to make us
think all is wonderful,and you are all doing
a great job.
L H.
How can the Government say that prices have NOT gone up? None of those people that a make the decision probably never shop or pay for their food, gas, health insurance (thanks to ObamaCare) or anything that relates to dally living expenses. Those of us that are retired or forced to be out of work are paying the bill for those fats cats in Washington. Time for a REAL change and NOT the kind that we have seen in recent years.
Elisha
I think this is wrong. The cost of food and utility bills have increased along with the cost of medicine and medical expenses. I bet the government will get a raise. Why is it when they have so much already the decision is to take from those that don’t have ?
Bryan A.
Why? Cos I’m reminded of an old saying & in this case, it REALLY rings true. The cost of living is going UP & the chance of living is going down. But that’s government for ya. The rich get richer while the poor get poor’er. Go figure.
JIM S.
IT WAS SAID THIS ACTION WAS BECAUSE OF GAS PRICES BEING LOW. YES IT WAS BUT IT HAS BEEN GOING BACK UP IN THE LAST MONTH AND THE NATIONAL GAS ASSOCIATION SAYS IT WILL KEEP GOING UP THIS YEAR? WHO FIGURES THIS STUFF OUT?
disgusted
government crooks
Rodney
Oblowbo should be boiled in crude oil for giving away everything that the AMERICAN CITIZEN has worked so hard for. He keeps giving it all to his muslum terrorist families, the scum that crosses the borders from mexico(his other communistic families) and why has he been allowed to do this without any repercussion. I hate the worthless gay piece of primate dung……. He should have been removed from office after the first 6 months of being placed in the White House by the corporate world(he sure wasn’t elected by the people. Karma is a bitch and he will suffer greatly for what he has done.
Leonard M.
The cos of living has increased dramatically in the last year. Groceries, prescription drugs, healthcare,insurance costs only to mention a few.
disgusted
sadly it started to increase since 2009