No COLA adjustment for Social Security recipients in 2011

social security documents
social security documents

The prediction from scholars that the Social Security Administration will announce zero cost-of-living adjustment, or COLA, to Social Security recipients in 2011 is a blow that many older and disabled Americans can ill-afford.

In 2010, Social Security recipients were stuck without an annual cost-of-living increase for the first time since 1975, when the annual COLA changes were adopted. At the time the administration made that decision, they forecasted no change for 2011, either.

Now, the projections are bearing out -- news that, sadly, is not serving as a reason to trust in the forecasting abilities of the Congressional Budget Office. Economists say that the stagnation of income for the 58.7 million people receiving Social Security or Supplemental Security checks will have a net drag on the economy, as expenses for utilities, rent, and other unavoidable costs could possibly rise despite the government's constancy.