A report from the New York Times forecasts that benefits for people on Social Security will not rise in the upcoming year. If predictions are correct, this is the first time this would happen in more than three decades.
The reasoning behind the forecast is the C.O.L.A. (Cost of Living Adjustment), a formula that yields proper adjustments to benefits to meet the requirements of living day-to-day. For a better perspective think about this, increases have been the norm since 1975 and just last year the increase was 5.8 percent.
The forecasts, which were put out by the current administration and the Congressional Budget Office, shows that an increase in C.O.L.A may not arrive until 2012. Then it may just be a 1.4 percent hike from the previous year.
“Most seniors have never been through a year in which there was no Social Security COLA,”
– David M. Certner, legislative counsel at AARP
Want to learn more about C.O.L.A? Click Here