It's that time of year when publications start trying to estimate the Cost of Living Adjustment (COLA) for Social Security benefits. Forbes is giving itself plenty of wiggle room by estimating it at 8.6% to 10.5%. Even the low figure is high. The upper figure is alarming.
Obviously, the COLA is crucial for recipients of Social Security benefits but inflation that high has serious implications for Social Security's administrative budget, Social Security employees who won't receive a COLA anywhere near this great and Social Security attorneys who are subject to a fee cap that isn't indexed for inflation.
Like the rest of the working population is going to get anything over 3%. Get real Chuck you think Pizza Hut is going to give 10% COLA to its employees?
ReplyDeleteAll it does is crank up the Part B Premium for those filing in the next couple years because it is going to go up about as much as the COLA.
Using June's figure, the COLA is at 9% but it's the average of July, August, and September that count. You will have a better idea by mid-September when you have July and August available.
ReplyDeleteA high cola is not a good thing
ReplyDeleteEmployees get a wage increase, retirees get cost of living adjustments. They are not the same thing. So SSA employees will never get a COLA but may get a pay increase. Lawyers should know that things with names should be called by their names.
ReplyDeleteMy employer literally calls it a Cost of Living Adjustment when we get a yearly bump, but whatever.
ReplyDeleteWe get a salary adjustment when new tasks are added or a change in position or title.