Lower gas prices leads to no Social Security increase next year

Published: Updated:
MGN

PORT CHARLOTTE, Fla. – Relief at pump this year may leave millions scrambling to make ends meet in 2016.

“It could be, you know, less groceries, fewer trips with your car, a lot of things,” said Charlotte County resident Steven English.

Next year, retirees, disabled veterans, and anyone who receives Social Security can expect no increase in their benefits.

“It could affect us a lot because we’re on fixed income, and everything keeps going up around us and it’s just hard to provide for our families,” said English.

The annual cost-of-living adjustment (COLA) is based on inflation. Economists say this year, prices have actually dropped and a main reason is lower gas prices.

“Well I think that not everyone is affected by gas prices the same way, so I think there are some who would benefit more from a Social Security increase,” said resident Larry Knowlton.

Congress added automatic increases for social security in the 1970s, when inflation was high. Since then, increases have averaged 4 percent a year. This is only the third time people haven’t seen an increase.

The government is scheduled to announce the COLA on Thursday.

Copyright ©2024 Fort Myers Broadcasting. All rights reserved.

This material may not be published, broadcast, rewritten, or redistributed without prior written consent.