How Much Will Social Security Checks Increase In 2016?

The short answer is.. THEY WON'T!

First The Bad News
According to the Associated Press, "For just the third time in 40 years, millions of Social Security recipients, disabled veterans and federal retirees can expect no increase in benefits next year."

Now For Even More Bad News
According to this CNBC headline: Medicare Part B premiums to rise 52% for 7 million enrollees. I urge everyone affected to read this article which explains measures some can take to avoid getting hammered.



Further information can be found HERE which goes into greater explanation as to why this has happened. Although I find it hard to understand why, one thing I do understand very clearly is future retirees and some current ones (about 30%) are going to get it put them.

Although the raise in 2015 was only 1.7% it sure beat the hell out of 0% !

Gone But Not Forgotten
These changes go back to 2007 under G.W. Bush's final two years in office when Democrats controlled both chambers of the 110th Congress. The same congress that also failed to enact the "Medicare Prescription Drug Price Negotiation Act of 2007". Obviously there's plenty of blame to go around. Perhaps more so with the Democrats who crow about their record on financing social needs. In this case, not so much.

For most seniors who rely on interest rates for payments from their savings the last few years has been terrible. Often times less then 1%. Those who gambled on stocks unless they were investment wizards also took a few hits. At least seniors could always count on SS coming through with a couple of bucks. Apparently not anymore !


Social Security Is Not The Same As The Dept. Of Labor's COLABecause SS is calculated differently then regular inflation (COLA) retirees have lost an estimated 33% of their purchasing power over the last 15 years. SSA only takes the average cost of living increases over a three month period (July, August, September). Then divides that by the same three months of the year prior.


UPDATED
(10/15/2015)

Now it's official. Social Security today announced, "Social Security and Supplemental Security Income (SSI) benefits for nearly 65 million Americans will not automatically increase in 2016."