We are already getting questions on what the 2017 Cost of Living Adjustment (also known as COLA Increase) will be for Social Security beneficiaries receiving Disability and Retirement benefits. Even though it is currently way to early to tell, I thought I would share some of the numbers for you.
2017 Final Social Security COLA Numbers at Bottom of Article
Social Security adjustments for Cost of Living are based off from the CPI-W, also known as the Consumer Price Index for Urban Wage Earners and Clerical Workers. These are monthly numbers issued by the Bureau of Labor Statistics however only the numbers for July, August and September are used for each year.
The CPI-W for the third quarter (July, August and September) is averaged for the current year, and the year before. If the number is higher the percentage of increase is the Cost of Living Adjustment. If the number is lower like it was last year, there is no COLA Increase.
April Update on 2017 COLA Increase
So far this year, the CPI-W is trending higher than what it was last year at this time for all four months that have been reported. May numbers will be reported later this month. While the exact amount of the Cost of Living Adjustment will not be known until after September it is looking exceedingly likely that there will be a Cost of Living Adjustment for people on Social Security Disability and Retirement in 2017.
June Update on 2017 Social Security COLA Increase
Numbers continue to be positive when looking at the Social Security Cost of Living Adjustment for 2017. I’ve now added numbers to the chart below comparing the Consumer Price Index (CPI-W) from last year to this year. As the CPI-W continues to trend upwards compared to last year, we should be expecting a COLA Increase, however it will likely be a small one.
July 2017 Social Security COLA Increase Updte
The numbers for July 2016 CPI-W are out and as we stated before the CPI-W is the number that is used to determine the Social Security Cost of Living Adjustment, also referred to as the COLA Increase.
The CPI-W for this year (red) continues to trend upwards compared to last year (blue), however the margins are now closer which is not a good sign as July, August and September are the only months that count for a COLA Increase. If the margin continues to narrow we should only expect a narrow COLA Increase. The month of July is only 1 percent higher than last years CPI-W which means those receiving $733 for SSI would only expect $7 more a month if the numbers for July continue for August and September, however it is still way to early to know for sure and the situation can get worse or better during the months of August or September.
Final COLA Increase Number for 2017
Screw the graphs… I’m not going to even bother. The final cola increase number for social security recipients in 2017 will be .3 percent. For the average person who lives on social security that will amount of between $3 and $4 a month. That is before the expected Medicare Premium hike which will reduce the actual income on many that are on Social Security.