Social Security

Social Security COLA of 3.6% for 2012 confirmed by September inflation index

Look for a COLA in Social Security benefits next year of 3.6%.

This is based on the increase in the CPI-W index from the third quarter 2008 to the third quarter 2011. The index for the 2008 period was 215.495.

The index for 2011 is: July 222.686, August 223.326 and 223.688 September for an average of 223.2337.

Subtract 215.495 from 223.2337 and you get and increase of 7.738 or a change from 2008 of 3.590% which means a Social Security COLA of 3.6% (assuming I have the rounding right)

This also means the Part B Medicare premium will increase for the 75% of beneficiaries who have had their premium frozen for the last several years.

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Categories: Social Security

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