October 18, 2016 — The Social Security Administration today announced a very modest Cost of Living Adjustment (COLA) for 2017 of 0.3%. There was no COLA in 2016, whereas the COLA in 2015 was 1.7%. The 2017 increase results in a whopping $4 a month based on the average SS retiree benefit of $1350.
The government measures changes in the cost of living through the Department of Labor’s Consumer Price Index (CPI-W). Since the CPI-W did rise this year, the law increases benefits to help offset that inflation. As a result, monthly Social Security and SSI benefits for over 65 million Americans will increase 0.3 percent in 2017.
Other changes will also begin in January 2017. For example, the maximum amount of earnings subject to the Social Security payroll tax will increase to $127,200.
Information about Medicare changes for 2017, when announced, will be available at www.Medicare.gov. For some beneficiaries, their Social Security increase may be partially or completely offset by increases in Medicare premiums.