Good Day World!
Lower gas prices this year has been good news for the American consumer.
But, those low gas prices are going to take an unexpected toll on over 70 million people, more than one-fifth of the nation's population, next year.
The main reason for no benefit increases next year for millions of people is…believe it, or not, low gas prices.
By law, the annual cost-of-living adjustment, or COLA, is based on a government measure of inflation. This year, because gas prices have dropped, no one will get a cost of living increase in 2016.
That affects retirees, disabled workers, and spouses with children, who get Social Security benefits.
That also goes for 4 million disabled veterans, 2.5 million federal retirees and their survivors, and more than 8 million people who get Supplemental Security Income, the disability program for the poor. (Source)
It seems ironic to me that when something good happens for consumers in this country, it comes with a caveat.
Time for me to walk on down the road…