The PBS News Hour reported that Social Security beneficiaries will get no increase in their monthly benefits for 2016. This is because inflation was pretty much non-existent for 2015. Per PBS, the main cause of low inflation is gas prices. This is a bit ironic, given that the disabled and retired probably drive less than other Americans. So, while low gas prices are a boon they don’t particularly benefit from, SSA recipients see a stagnant monthly check as a result of said low prices. All things considered, I am sure it is better to have no inflation and no benefit increase than to have run away inflation. But that provides only so much comfort. While overall inflation is low, some items have seen dramatic price increases. Think medical care. Which is precisely what the disabled and retired need more than most. To that point: the Medicare premiums for 2016 are going to go up. For most retirees, this will not be a big issue. Federal law prohibit a decrease in SSA benefits to cover increased Medicare premiums. But this leaves about 30% of SSA beneficiaries exposed to the higher Medicare premiums. For those unlucky folks, there will be an actual decrease in their monthly benefits. And all beneficiaries are going to feel the effects of the increased Medicare deductibles. If you add it all up, it sounds like almost all SSA beneficiaries are going to see less money in 2016. But, at least gas is cheap, right?
Looks Like No Increase in Benefits For 2016
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