No 2016 Social Security COLA

Social Security 6 comments

Again in May 2015 the CPI-W increased at a pace too slow to generate a Social Security COLA in 2016. 

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) decreased 0.6 percent over the last 12 months to an index level of 232.908 (1982-84=100). For the month, the index rose 0.6 percent prior to seasonal adjustment.

For there to be a 2016 COLA the average index for July, August and September 2015 must exceed 234.241. As things stand now, that significant an increase in inflation during the third quarter of 2015 is increasingly unlikely. 

6 comments

  1. I believe Social Security was and is a retirement plan for two reasons.
    The Social Security Act (Act of August 14, 1935) [H. R. 7260]
    PREAMBLE
    An act to provide for the general welfare by establishing a system of Federal old-age benefits, and by enabling the several States to make more adequate provision for aged persons, blind persons, dependent and crippled children, maternal and child welfare, public health, and the administration of their unemployment compensation laws; to establish a Social Security Board; to raise revenue; and for other purposes.

    1.) “the general welfare” is defined as the good fortune, health, happiness, prosperity, etc., of a person, group, or organization; well-being, which is the general basis for a retirement plan.

    2.) A defined benefit plan and a defined contribution plan are both types of retirement plans. Therefore, if an employee pays a portion of his income to the Social Security Administration along with an equal amount from his employer, they combined are contributing to a defined contribution plan. And by definition, to a retirement plan.

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  2. This is totally wrong..due to financial issues..sometimes Social Security is a blessing..but if congress does not get off its collective butt and do something to repair Social Security..this blessing will be gone..Stop giving yourselves raises and such..give the money back to the people where it belongs..

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    1. Congress hasn’t gotten a raise in years. Besides even if they did, it would be a tiny drop in the bucket in terms of SS. There are just too many people collecting benefits and too few working and paying taxes because of demographics. How much more should we tax working Americans to give more benefits to seniors?

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      1. Let me guess..u are not a senior citizen?? U cannot know what it is like to have financial issues..that require a person to take SS early..perhaps when u are in your 70s..u will understand..that SS is necessary ..its hard for some people to make it ..i work PT..and make piddle..so in order not to be out on the streets..i had to take early SS…i didnt want to know beleive me..i would have rather waited..they need to fix this Social Security mess once and for all..and I will not understand..why those that are no longer presidents or whatever..still get an income?? that is wrong..they are earning money that could be given back to ordinary citizens…yes i am pissed..and this is how i feel about the idiots in washington

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      2. In fact I am 72 and began taking Social Security at age 66. However, I am lucky that I have a pension as well. I cannot begin to understand your situation nor do I criticize. But to say a President should not receive a pension is not fair and if they didn’t it would make no different to Social Security in any case. SS was never intended to be the primary retirement income. For people to work their entire lives and after 45 years plus end up living on only Social Security is a sad commentary. Something is wrong and in most cases what is wrong is the life choices and lifestyle of the individuals. For a relatively few pure misfortune comes into play.

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      3. Ok i do thank u for not judging my situation..and i do apologize for my crude remarks. but the thing is..i do work PT..and make ifim lucky maybe 1000 monthly.. plus i receive 720 in early SS…which i had no choice but to do early due to a bad financial situation. It is a bit better and Im doing a bit better now..but im still not out of the woods..as they say. Im sure in your eyes..my choices made were wrong ones..i dont have a pension..like u..to fall back on..ive worked over 20 years..doing medical typing and its beginning to catch up to me….so in my case..SS is a much needed income..

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