Seniors on limited income are likely to feel a huge pinch for 2016, as there will be no cost of living increase (COLA) for 2016 according to the Social Security Administration.
The reason for this decision is continued low inflation in the United States. However, much of this is due to a drop in gas prices in 2015. Expenses that have a much more major impact in many senior’s lives, such as food and medicine did actually increase for 2015. Medical costs in 2015 rose by 3.7% while food costs were up 1.6% and prescription drug costs went up a huge amount – 11%.
These means that while seniors will not be receiving any more funds in their monthly checks, their daily expenses have likely gone up a considerable amount for 2015. This unbalanced situation needs to be addressed by the government, so that the seniors who rely on Social Security checks (over half of all seniors, according to the AARP) will not be harmed more in coming years!