Even though the 2016 year is not even half over there is already some speculation as to what will happen with Social Security benefits in 2017. Each year those who receive Social Security benefits, whether they are retirement, disability or survivor’s benefits, brace themselves to learn whether or not they will get an increase in their benefits. Last year there was no increase in benefits because inflation was low and now it is possible Social Security recipients could face a second consecutive year without any pay increase because inflation remains low.
Increases to Social Security benefits occur when there is an increase in inflation as measured by the Consumer Price Index for Urban Wage Earners (CPI-W) and is based on the third quarter CPI-W from the year before. Considering the third quarter of 2016 ends at the end of September and the latest tally from the CPI-W is just 0.3 percent inflation, it is not looking good for an increase, or at least a meaningful increase. There is a potential for a very small increase, which won’t make much of a difference in the lives of most beneficiaries.
The good thing is that those who collect Social Security benefits will not have to wait until the end of the year to find out if they will be receiving an increase of benefits. The Social Security Administration will make an official announcement at some point in October. Unfortunately, unless inflation increases the rest of the year an increase is unlikely making it the second consecutive year without any pay increase and the fourth time within the last six years.
It could even be worse for some Social Security recipients who could see no increase in benefits, but an actual increase of their Medicare premiums which would actually result in a next loss. To learn more click here.
