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.
Categories: Social Security