Social Security News for Senior Citizens
Social Security News
No Social Security COLA for senior citizens in 2016 appears certain as do Medicare hikes
Means problems for Medicare: Part B premiums cannot increase for most , so minority has to bear burden of rising costs
Oct. 8, 2015 - It’s not official, but the experts seem to be in agreement that senior citizens will not get a cost-of-living adjustment (COLA) from Social Security for 2016. It will be just the third time in 40 years, according to an analysis by Alicia H. Munnell and Anqi Chen of the Boston College Center for Retirement Research.
Other key findings in the brief - No Social Security COLA Causes Medicare Flap - find trouble in Medicare with no COLA:
· No COLA means that Medicare Part B premiums cannot increase for most beneficiaries, so a minority has to bear the full burden of rising costs.
· Beyond this immediate flap, a broader issue is that Medicare premium growth is not fully captured by the inflation measure used to set the COLA.
· As a result, when Medicare premiums rise rapidly, older Americans cannot maintain their non-Medicare spending.
· In short, even the Social Security COLA does not fully insulate older households from the erosive impact of inflation.
The Center for Retirement Research regularly presents analysis on Social Security issues. Click Here to menu of past reports.
The Squared Away Blog has been added to the Retirement Section of SeniorJournal.com. It will regularly provide a menu of choices including all the recent blogs by Kim Blanton that link to the Center for Retirement Research at Boston College.