Small COLA Predicted. But there WILL Be One
Dan Caplinger of The Motley Fool takes readers through how the Social Security Administration uses price increases from July, August, and September as compared to the previous year using those months to figure the cost of living adjustment (COLA) Social Security recipients will get. Two months of data are in, and it is now possible to predict a COLA of 1.2 to 1.4 percent as we await September data. The announcement will come in October and be effective January 1. The COLA is intended to preserve the purchasing power of Social Security benefits when there is inflation. While paltry COLA increases disappoint many, benefits can never be decreased (even if there is deflation) and compared to the pay cuts and lost hours in the overall economy, any increase should be considered welcome news. Full article in The Kenosha News here.