Social Security COLA Expected To Be Low, Possibly Zero.

August 5, 2020

USA Today (8/5, Powell) reports experts are predicting that the Social Security cost of living adjustment (COLA) for 2021 will be small or nonexistent. The increases are “based on increases in the cost of living, as measured by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W),” and the “the year-over-year increase in the CPI-W through the second quarter of 2020 is 0.15%.” That figure could decline to COVID-19-related price deflation. Fortunately, “most Medicare beneficiaries fall under the ‘hold harmless’ clause,” which prevents Medicare premiums from increasing “more than the dollar increase to the recipient’s Social Security benefits.”

Last modified on 08/07/2020

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