Social Security Changes for COLA 2012 to be finalized in October

This year seniors should be seeing an increase in their monthly Social Security checks.  Cost of Living Adjustments (COLA) are made each year based on the change in the average Consumer Price Index (CPI-W) for the 3^rd quarter of the current year compared to the last year that the index rose.  Since we are nearing the end of the 3^rd quarter of this year there is speculation about what the increase might be.  The CPI average for September will be finalized on Oct 19^th 2011.  Based on the average CPI-W for July and August the increase could be as much as 3.5%.

Each year there is an automatic adjustment made for cost of living increases automatically.  It is not dependant on how things are going in Washington but rather solely based on the CPI-W averages from one year to another.  There has been no COLA increase in the last 2 years as the average CPI-W was less than the previous year.  Theoretically that means that costs for seniors have remained the same.  Many would argue that is not the case.  Since many seniors rely on SS for more than one half their income, the adjustment is very important and they are awaiting the final results.  The exact increase should be known next month and will take effect in 2012.

Related posts:

1. Social Security COLA: 2012 Will See an Increase
2. Social Security COLA Increase Expected for 2012
3. Security Level Severe for Britain’s 2012 Olympics