Social Security

Social Security 2017 COLA is 0.3% but you won’t see it. 

Note: my original calculation below rounded the increase to the nearest 0.0% as indicated on the SS webpage. However, Social Security Administrstion has calculated the number at 0.3% 

Upon further investigation I discovered that the CPI-W for July and August 2016 had been retroactively adjusted downward slightly thereby affecting the COLA calculation just enough to discount the rounding to 0.4% as I originally calculated. 

Original post today:

The CPI-W for July 2016 was at 234.789. The August CPI-W was 234.909 and for September it was 235.495. Thus the average for the third quarter of 2016 is 235.064

The average for the previous benchmark of July, August and September 2014 (last year of a COLA December 2014/January 2015) was 234.241.

A difference of 0.35 or rounded to 0.4%

Therefore the 2017 COLA is 0.4% so if your monthly benefit is $1,300, your benefit will increase by $5.20 but because of Medicare premiums going up, the typical beneficiary will see no increase in their Social Security net income. 

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7 replies »

  1. .

    Medicare B premiums for many will have big increases in 2017… creating an even bigger divergence in Medicare premiums among those on Social Security. For example, those who turned 65 and on Medicare for the first time in 2016 already pay a lot more than those who came on Medicare before 2016. And those newcomers who turn 65 and go on Medicare in 2017 will pay even more than the newcomers in 2016.

    As one article says at link below… it’s a mess… soon to become a bigger mess.

    See news article references at link

    http://www.early-retirement.org/forums/f28/ss-cola-and-medicare-b-premiums-83768.html

    .

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  2. Independent Health dropped their ‘0’ premium Medicare Advantage plan and now have to pay $65 monthly premium (single). I understand the Medicare premium goes from approximately $104 to $121. So much for a $4-$5 increase in Social Security.

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  3. “Upon further investigation I discovered that the CPI-W for July and August 2016 had been retroactively adjusted downward slightly thereby affecting the COLA calculation just enough to discount the rounding to 0.4% as I originally calculated.”

    Upon further investigation I have noticed that the government bean counters adjust things up or down retroactively in favor of the government more times than in favor of the citizens. It is the (TRUMP) rigged system at it’s best. How many millions did they save the government by trimming the COLA by .1%.? I will be getting $4 instead of $6 and I am not on Medicare yet. Not affecting my monthly budget much. But will it help with the 19 Trillion dollar debt, NO because the politicians will just spend the savings on something else.

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    • Don’t know yet, but whatever it is it won’t go higher than the amount of an individual’s COLA amount except for higher income. I can’t see it being less than $4 or $5 a month, but they still have to play catchup from last year.

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