For the first time in five years, there will be no annual raise in their Social Security benefits in 2016.
The reason? A decline in inflation caused by falling gas prices.
The amount of money that Social Security pays out is adjusted each year to take into account the rate of inflation. This is known as the cost of living adjustment, or COLA.
The inflation measure used by the Social Security Administration was down 0.6% for the 12 months that ended in September — largely due to a nearly 30% drop in gas prices. The COLA is set every October based on the September inflation report.
In 2015, Social Security benefits rose 1.7%, and they’ve climbed by less than 2% for three years in a row.
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