No cost-of-living increase, no COLA.

• In 1975, a system was set up to automatically increase Social Security benefits so that recipients (elderly and disabled Americans) could keep up with the cost-of-living increases brought about by inflation.
• At the end of 2010, the Social Security Administration decided to cancel automatic cost of living adjustment (COLA) because the inflation rate (usually around 3%) was too low to justify it. Now the SSA has decided to cancel the increase for 2011 as well.
• Despite low the inflation rate, many Social Security recipients have lost money on their retirement investments and the value of their homes.

Facts & Figures

• Social Security provides benefits for 58.7 million Americans.
• In 2009, the COLA reached a 27-year high of 5.8%.
• The average monthly Social Security check is $1,072.

Best Quote

“We’re a little bit upset because our bills are going up and our Social Security isn’t.” – Betty Dizik, 83, Retired Tax Preparer and Social Worker

Tags: cost of living, disability, inflation, retirement, social security, SSA, SSI