Or that is what is being thought by the Social Security Administration as we round out 2015 and head into 2016. And the culprit? “Persistently Low Inflation.” How could that be, didn’t the Fed just meet and there were concerns of looming inflation? Apparently not enough inflation to rock the CPI-W.
The SS COLAs are determined in a different manner using the CPI-W which is the consumer price index for all urban wage earners and “clerical workers” as compared to the more commonly know CPI-U for all urban consumers. Ending the 12 months in August, the CPI-W has been trending downwards(?) at 3 tenths of 1%.
It kind of makes sense as we are now talking about the upper 10 of the income brackets starting at ~$110,000. Going into the future, Social Security trustees suggest COLAs will average 2.7%. And banks, the Fed, and Congress continues to worry about inflation.
This will be the 3rd year after 2010 and 2011, a COLA has not be given to Social Security recipients.