No Cost of Living Boost in 2016
Some 65-million retirees on Social Security will not receive a cost of living boost in 2016. Its’s a first in five years. The reason? A decline in inflation caused by falling gas prices. In other words, if the price of goods doesn’t increase, Social Security benefits stay flat. Unfortunately, the way the government measures inflation may not accurately reflect how many on Social Security spend. Many seniors drive very few miles per month and spend little on gas. But medical costs, a big ticket item for many retirees, have risen faster than inflation. The typical retiree’s benefits is about 13-hundred-dollars a month.