2018 COLA Speculation: Maybe a Good News/Bad News Story Ahead?
If CPI-W numbers in the early months of 2017 are any indication of what will happen in the July, August, and September period, the possibility of a higher Cost of Living Adjustment (COLA) for 2018 may be in the cards for Social Security recipients. CPI-W, the Consumer Price Index for urban wage earners, is the primary factor for calculating COLAs, and this factor has shown an uptick so far in 2017. April’s 1.4% jump is an example, but of course we won’t know the final calculation base until mid-October.
But what’s the bad news? Well, looking at the CPI-W from another angle, remember that it’s also an indicator of inflation. As wages go up, commodity prices also tend to rise, so the gains might erode in the long-term. Until a COLA factor more representative of the spending patterns of seniors is implemented, this good news/bad news scenario is likely to remain in effect.
Dan Caplinger provides thoughts on the COLA situation in a post on www.pantagraph.com…check it out here
.
This posting is presented for informational purposes only and does not represent legal or financial guidance. Any opinions or interpretations presented are either those of the original author or, in the case of articles authored by the AMAC Foundation, are the opinions of AMAC Foundation staff, originally trained and accredited by the National Social Security Association (NSSA) and certified via the AMAC Foundation. Any links included in the article are valid on the posted date; socialsecurityreport.org cannot guarantee the duration of the links’ validity. NSSA and the AMAC Foundation and its staff are not affiliated with or endorsed by the Social Security Administration or any other governmental entity. To submit a question, visit our website (https://amacfoundation.org/services/) or email us at ssadvisor@amacfoundation.org. Because we are a non-profit organization, there is no charge for these services.