Social Security cost-of-living adjustment expected to have a near-flat increase

Retirees will not see their Social Security checks improve much next year as the cost-of-living adjustment (COLA) is projected to be 0.2%, according to the annual report of the trustees for Social Security and Medicare released on Wednesday.
After no automatic adjustment in 2016, this will be the fourth year in a row where the increase fell below 2%, with modest increases of 1.7% in 2013, 1.5% in 2014 and 1.7% in 2015.
This latest slight raise would continue the trend of COLAs not increasing at a pace that matches the increasing expenses for seniors.
Over the past 16 years, COLAs have increased benefits by just 36%, while typical senior expenses, influenced heavily by higher medical and prescription drug costs, jumped about 75%, according to the TSCL’s 2016 Survey of Senior Costs.
The trustees report did not hold positive news for high-income retirees who could see a 22% increase in their monthly premiums for Medicare Part B, which covers doctor visits and other outpatient care.
This is due to Social Security Act’s “hold harmless” provision which protects the majority of retirees from paying a larger increase in these premiums than what they receive in a Social Security COLA increase to avoid a reduction in their net Social Security benefits.
(More: Mary Beth Franklin on how Medicare fits in with COLA)
For now, these are only projections made by the trustees; the Social Security Administration is expected to make an official announcement in October.