Recent inflation trends could boost the 2018 cost of living adjustment (COLA) for Social Security beneficiaries to its highest since 2012, according to advocacy group The Senior Citizens League.
While any increase would be welcomed news for seniors living on a fixed income, the potential six-year high won’t necessarily be something to write home about, according to TSCL.
“The rate of inflation is the driver of COLA increases. But the truth is that it would not take much to beat COLAs of the past five years — 2013 thru 2017. During that time COLAs ranged from a low of zero in 2016, and 0.3% this year, to a ‘high' of 1.7 percent in 2013 and 2015, anything above 1.7 percent would make it the highest since 2012,” said Mary Johnson, TSCL’s Social Security and Medicare policy analyst. “The bar is set pretty low.”
Johnson discussed with FOX Business TSCL’s predictions for 2018 COLA, which the Social Security Administration will announce in the fall, and what it means for retirees.
Boomer: What are some of the changes we might see for Social Security in 2018?
Johnson: Recent CPI data indicates that the COLA in 2018 could be the highest since 2012. (Remember that could be anything higher than 1.7 percent). I’m projecting that the COLA for 2018 will be around 1.9-2.1 percent. Keep your fingers crossed, the 12 – month rate of inflation growth has weakened over the past month.
Boomer: With benefits losing 30 percent of their buying power in 2017, do you see any chance of COLA increases playing catch up over the next few years?
Full story at FOX Business