Many seniors have a unique view of the Social Security COLA. Some believe it is not based on true cost-of-living, others feel it’s manipulated by Congress or even the President. Some beneficiaries believe they paid for their COLA; they earned it as they say, they are entitled.
Prior to 1975 a COLA required an act of Congress, today it is based on changes in the CPI-W and nothing more. The amount of the COLA rises and falls based on inflation as the chart below shows. Some years have seen substantial increases, a few no increase and several in the past were increases similar to the COLA likely for 2015.
The 2015 COLA will be known October 22nd when the September 2014 CPI-W will be released.
Categories: Social Security