Cool. Inflation is above 3% and we only get a 2.8% COLA. So thankful to Trump and his party for helping those of us below the top 1% fall further behind economically. If only you idiots weren’t too ignorant to realize that this is exactly what the “gilded age” Trump promised to return us to was like for the vast majority of Americans.
The COLA isn't based on one month's figure, and, by statute, uses a specific COL index, the one for Urban Wage Earners and Clerical Workers. To calculate the COLA they compare the average cost of living index for the 3 months of the 3rd quarter of this year (July, August and September) with the average of those months for the third quarter of last year.
Specifically, in 2024 the figures for July through September were 308.501, 308.640 and 309.046, an average of 308.729. For 2025 those figures were 316.349, 317.306 and 318.139, an average of 317.265. If you divide 317.265 by 308.729 you get 1.0276488, which would round up to 1.028.meaning a 2.8% is correct. This is all by statute that has been in effect for many years.
You can complain the specific index used and how various expenses are weighed in the calculations, but the calculation this year was done in the same manner it has been done for several decades under both Republican and Democratic administrations.
Last I heard, the standard Part B premiums for 2026 are trending towards about an 11-12% increase over 2025, while Part D was looking at about a 6+% increase for the low cost plans (with the better ones increasing more than that).
We'll see at the end of November when the administration drops that Thanksgiving turd on everyone.
Federal salaries are on pace to be just a 1% increase -- and we've been working with no pay at all since the start of the month. 2.8% sounds absolutely wonderful.
The SSA said the adjustment, known as the cost-of-living adjustment, or COLA, will raise average monthly payments to Social Security recipients by about $56 starting in January. The hike applies to retirement, disability and supplemental income checks for roughly 71 million Americans.
The outcry was immediate. Senior groups said the increase was too small to offset real-world inflation pressures and accused Washington of ignoring retirees’ financial struggles. “The 2026 COLA is going to hurt for seniors,” said Shannon Benton, executive director of the nonpartisan Senior Citizens League
Year after year, they warn that Social Security’s meager increases won’t be enough.” Benton said her group’s research suggests that nearly one in ten retirement-age Americans lives in poverty — and that the true figure could be higher. “It’s about time our elected representatives show up for seniors, or else seniors won’t show up for them at the voting booth,” she said.
Social Security Commissioner Frank Bisignano defended the calculation, saying the annual adjustment “is one way we are working to make sure benefits reflect today’s economic realities and continue to provide a foundation of security.” Bisignano’s agency had delayed the announcement by more than a week because of the government shutdown that stalled September inflation data.
Earlier forecasts warn the retirement trust fund could be depleted within seven years, forcing automatic benefit cuts of as much as 24% if Congress fails to act. Economists said the 2.8% raise roughly matches average COLAs over the past decade, which have averaged 3.1%, but doesn’t reflect how sharply costs have risen for retirees in recent years.
These numbers are cooked like everything else in this administration. 👩🍳
ReplyDeleteMy mind have suspicion too. Cooked on the low side.
DeleteThere is a reason why this is happening..
ReplyDeleteHamburger Helper sales surge as Americans tighten budgets for meals.
Cool. Inflation is above 3% and we only get a 2.8% COLA. So thankful to Trump and his party for helping those of us below the top 1% fall further behind economically. If only you idiots weren’t too ignorant to realize that this is exactly what the “gilded age” Trump promised to return us to was like for the vast majority of Americans.
ReplyDeleteThe COLA isn't based on one month's figure, and, by statute, uses a specific COL index, the one for Urban Wage Earners and Clerical Workers. To calculate the COLA they compare the average cost of living index for the 3 months of the 3rd quarter of this year (July, August and September) with the average of those months for the third quarter of last year.
ReplyDeleteSpecifically, in 2024 the figures for July through September were 308.501, 308.640 and 309.046, an average of 308.729. For 2025 those figures were 316.349, 317.306 and 318.139, an average of 317.265. If you divide 317.265 by 308.729 you get 1.0276488, which would round up to 1.028.meaning a 2.8% is correct. This is all by statute that has been in effect for many years.
You can complain the specific index used and how various expenses are weighed in the calculations, but the calculation this year was done in the same manner it has been done for several decades under both Republican and Democratic administrations.
Gee I wonder how much the Medicare B premium will go up to wipe that COLA increase out?
ReplyDeleteLast I heard, the standard Part B premiums for 2026 are trending towards about an 11-12% increase over 2025, while Part D was looking at about a 6+% increase for the low cost plans (with the better ones increasing more than that).
DeleteWe'll see at the end of November when the administration drops that Thanksgiving turd on everyone.
Federal salaries are on pace to be just a 1% increase -- and we've been working with no pay at all since the start of the month. 2.8% sounds absolutely wonderful.
ReplyDeleteI'm sorry federal workers are without pay. If democrats ever gain enough power they should institute some sort of federal unemployment program.
DeleteThe SSA said the adjustment, known as the cost-of-living adjustment, or COLA, will raise average monthly payments to Social Security recipients by about $56 starting in January.
ReplyDeleteThe hike applies to retirement, disability and supplemental income checks for roughly 71 million Americans.
The outcry was immediate. Senior groups said the increase was too small to offset real-world inflation pressures and accused Washington of ignoring retirees’ financial struggles.
“The 2026 COLA is going to hurt for seniors,” said Shannon Benton, executive director of the nonpartisan Senior Citizens League
Year after year, they warn that Social Security’s meager increases won’t be enough.”
Benton said her group’s research suggests that nearly one in ten retirement-age Americans lives in poverty — and that the true figure could be higher.
“It’s about time our elected representatives show up for seniors, or else seniors won’t show up for them at the voting booth,” she said.
Social Security Commissioner Frank Bisignano defended the calculation, saying the annual adjustment “is one way we are working to make sure benefits reflect today’s economic realities and continue to provide a foundation of security.”
Bisignano’s agency had delayed the announcement by more than a week because of the government shutdown that stalled September inflation data.
Earlier forecasts warn the retirement trust fund could be depleted within seven years, forcing automatic benefit cuts of as much as 24% if Congress fails to act.
Economists said the 2.8% raise roughly matches average COLAs over the past decade, which have averaged 3.1%, but doesn’t reflect how sharply costs have risen for retirees in recent years.