On October 15 the Social Security Administration (SSA) announced that there will be no cost of living adjustment (COLA) for Social Security recipients next year. This means that about 57 million Americans who receive Social Security checks because they are retired, disabled or veterans will not get a bump to help them make ends meet.
The SSA justified this move by citing a lack of consumer price inflation, which in their minds means that it should not cost seniors and disabled individuals any more to eat and pay bills next year than it does right now.
This disappointing announcement comes after last year’s well-received 5.8 percent COLA increase – the largest in the last 25 years. Social Security recipients also received a $250 payment last spring, a move that may be repeated as lawmakers try to soften the blow.
Another $250 payment for retired, disabled or veteran Social Security recipients would cost the government around $13 billion. Advocacy groups like AARP are not happy about the lack of COLA and agree that the $250 payout would help individuals suffering in this bad economy.
As people watch the values of their nest eggs, retirement funds and home values plummet, the news that there will be no COLA is not good. Considering the skyrocketing cost of healthcare and prescription drugs, many elder or disabled Americans are already struggling.
It remains to be seen if Congress will approve another much needed $250 check for Social Security recipients.