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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Jan S.
The cost-of-living adjustment is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers, or CPI-W, a broad measure of consumer prices generated by the Bureau of Labor Statistics.
The COLA is calculated by comparing consumer prices in July, August and September each year with prices in the same three months from the previous year. If prices go up, benefits go up. If prices drop or stay flat, benefits stay the same.
It has nothing to do with the President, Congress (although they could change the laws, but seem inclined to destroy SS) or illegal immigrants. The folks on this post who say that if you are here illegally, you are entitled to and receive no benefits, eve those who work based on an illegal status and pay into SS, cannot receive any retirement benefits from it. Google all of this before you get really upset and start hating on people who did not cause this. You will find articles that tell you it is the low price of gasoline that caused this. If so, it is the stupidest thing I’ve heard of. In retirement, most of us use les of that….things like medical cost and insurance , rent, utilities, etc are not factored in. If I remember correctly, this Board uses the cost of airfare, food and clothing as their criteria….nuts, nuts, nuts.
Robin
It’s still ridiculous – for many of us, our rent goes up every year. Prices for what we purchase go up every year. I wish they would talk to us instead of looking at abstractions.
Laura
Lets see…my Medicare premiums are going up. Don’t even get me started on the costs of my prescription drugs; 2 of my 13 monthly prescriptions are over $500 ea WITH an advantage plan added coverage.Oh yeah, if you have Medicare, the law prohibits you from using any type of prescription discount plan or manufacturer sponsored drug subsidy program, Medicare has prescription assistance for low income people (EVERYONE on Medicare is low income, people) but my income is $75 too high each month to qualify. I’m single with no family or friends in the position to be able to help, so what am I supposed to do? Become yet another statistic, I guess. Medicare refuses to pay for an assistive device prescribed by my doctors, after an almost 2 year appeals process, basically forcing me to be a shut in in my home with ZERO quality of life. I can’t leave the house safely, so I can’t drive & take advantage of all that cheap gas, which is still almost $3/gallon where I live. Food has gone way up. Utilities are up. Water is way up & I live in So California where we are facing raising water rates because we are forced by law to use LESS water and the utility companies are crying over lost profit as a result of reduced income. We’re forced to suck it up and suffer, they should be, too. My cell phone just went up 33% for less service. Personal care and household items are way up. Even the local McDonalds have raised their prices on average of 60% because of our minimum wage being higher than the most of the other 49 states. I would like to see the Senate & Congress have to live in California and try to make ends meet on Social Security & Medicare. Oh wait…they all get their salaries and free healthcare FOR LIFE. It’s bad everywhere, but there are areas of the country where it is much more expensive to live than others, LA, New York City, San Francisco, Alaska and Hawaii come to mind off the top of my head,
I’ve actually considered suicide, because dead is cheaper. The system is broken. There is so much fat and fraud it ‘s tragic, causing those of us who really need Social Security (I’m 52 and on permanent disability due to multiple health conditions) SSA Disability and SSI to suffer the consequences. Oh well, California just passed a form of assisted suicide. Maybe I’ll have that to fall back on.
Anonymous
Interesting comments and discussions. I am involved in the healthcare industry. I have to now due annual certification on the Federally Facilitated Marketplace every year in regards to health insurance and receipt of subsidy $’s or (Advanced Premium Tax Credits). You will be interested to see the below exam question (and shocking correct answer) for the 2016 testing- see below:
Which of the following is NOT a best practice for assisting mixed immigration status families?
A. Tell your clients who are immigrants that the Department of Homeland Security only reviews their status to determine eligibility for health coverage through the Marketplace and not for immigration enforcement purposes.
B. Avoid asking for the Social Security Number of a non-applicant, unless he or she likely qualifies for a premium tax credit to help pay premiums for the applicant.
C.Ask your clients direct questions about their citizenship or immigration status so you do not waste your time assisting them if they are not eligible for Marketplace coverage.
Shocker!- The answer is C! I AM supposed to ensure them that even though they are here illegally we will NOT report them or are interested in turning them in to enforcement, we are only trying to get them healthcare assistance. I am NOT supposed to qualify them to make sure they are here legally and I do not waste mine and everyone else’s time.
Judith M.
After all these years, I’ve learned that our government says nothing, does nothing and cares nothing about its senior citizens (y’all remember, the ones who built this country?)
Dorothy g.
So a box cake is on sale for .99 cents. Big deal, the ounces have been reduced. That is true for many items in the store. Maybe your total bill Iis $50.00 but you get maybe
3/4ths of the weight of the items you used to get.
michael m.
No shock here i am sure the Government will see there pay increase , remember they get the loaf of bead we get the crumbs
ROBERT H.
No cost of living increase! The Government needs to get their head out of the sand. My cost of living has increased more then last year! Medical, Food, Prescription Insurance Doubled! And many more!!! I guess the Government needs our money to pay the Trillions of dollars for our so called Defense! Makes me Ashamed to be and AMERICAN!
Lynn
Funny, I don’t remember ever seeing an”opt out” option on any of my W2’s. They force me to pay in and then they have the nerve to control how I live when I retire. Once you stop paying them and they start paying you, you are expendable in this country. Cheaper to bury you than it is to feed you. I have a deal for the US government…..return EVERYTHING I paid in, SS and Medicare, lump sum and we’ll call it even. Oh yeah, and my passport!!!!
Robert I.
That OK asm long as Medicare Part B deductions stay the same and Congress votes them selfs no raise in 2016. Ha Ha.
Edwin M.
So does this mean that our useless congress won’t be awarding themselves a raise?