Low gas prices to blame for lack of Social Security increase in 2016
Low gas prices are likely the reason why there won’t be any increases to Social Security benefits for both disabled people and retirees next year, economists say.
This is because the annual cost-of-living adjustment, or COLA, which is based on the government’s measure of inflation, has been kept at a minimum by lower gas prices, actually causing prices to drop below 2014 levels.
American Institute for Economic Research economist Polina Vlasenko said that there’s a “very high probability” that Social Security benefit increases in 2016 “will be zero”.
Congress passed a law for automatic increases for Social Security beneficiaries in 1975, a time when inflation had been at a high and there was pressure to enact automatic increases for benefits.
Our attorneys at the Hankey Law Office in Indianapolis help individuals file and appeal for Social Security disability benefits. If you need legal assistance regarding these matters, you may speak with a member of our legal team by calling our offices today at (800) 520-3633.