Social Security COLA Increase Expected for 2012
The Social Security Cost of Living Adjustment, also known as COLA, looks set to make its first rise in over three years during 2012 – albeit most likely by a modest amount. However, it remains to be seen how much extra cash the increase actually puts into the pockets of recipients once other factors have been taken into account.
As most will know, there are rather complex and abundant ties between Social Security and the US Medicare system. As it stands, depending on the level of annual income a person receives and when they began their Medicare coverage, it is entirely possible for most or perhaps even all COLA gains to be swallowed up by Medicare Premiums.
Social Security payments have remained unchanged for over three years now, forcing millions of Americans to live off the same level of income, despite rocketing prices across most areas of daily life. On the plus side, there have also been no increases in Medicare Part B payments in the same three years, so at least there have been no additional costs in this area.
Unfortunately, a rise of a few percent in COLA in 2012 would also be certain to trigger a rise in Medicare Part B premiums, which could in turn make the extra contributions all but redundant in many cases.
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