KirkLindstrom.com - Articles - 2016 -  2017 Cost-of-Living Adjustment (COLA)
Kirk Lindstrom on Cover of Timer Digest 2017 Social Security COLA
Cost-of-Living Adjustment (COLA) for 

    2017 Social Security Payments

==> Automatic Social Security COLAs by Year <==
 

Kirk's NewsletterSubscribe     Free: Articles  -  Charts  &  Blog
 
October 26, 2016: The Cost of Living Adjustment to 2017 Social Security payments will only be 0.3%
  • A COLA effective for December of the current year is equal to the percentage increase (if any) in the average CPI-W for the third quarter of the current year over the average for the third quarter of the last year in which a COLA became effective. If there is an increase, it must be rounded to the nearest tenth of one percent. If there is no increase, or if the rounded increase is zero, there is no COLA.
  • The tax combined tax rate for Social Security at 6.20% and Medicare at 1.45% will be 7.65%
    • NOTE:  The 7.65% tax rate is the combined rate for Social Security and Medicare.  The Social Security portion (OASDI) is 6.20% on earnings up to the applicable taxable maximum amount.
    • The Medicare portion (HI) is 1.45% on all earnings.
    • Individuals with earned income above $200,000 ($250,000 for married couples filing jointly) pay an additional 0.9% in Medicare taxes. The tax rates shown above do not include the 0.9% extra.
  • For those of us still working, the maximum amount of earnings subject to the Social Security tax (taxable maximum) rises from $118,500 to  $127,200.
  Automatic Social Security Cost-Of-Living Adjustments by Year:
 

July 1975 -- 8.0%
July 1976 -- 6.4%
July 1977 -- 5.9%
July 1978 -- 6.5%
July 1979 -- 9.9%
July 1980 -- 14.3%
July 1981 -- 11.2%
July 1982 -- 7.4%
January 1984 -- 3.5%
January 1985 -- 3.5%
January 1986 -- 3.1%
January 1987 -- 1.3%
January 1988 -- 4.2%
January 1989 -- 4.0%
January 1990 -- 4.7%
January 1991 -- 5.4%
January 1992 -- 3.7%
January 1993 -- 3.0%
January 1994 -- 2.6%
January 1995 -- 2.8%
January 1996 -- 2.6%
  January 1997 -- 2.9%
January 1998 -- 2.1%
January 1999 -- 1.3%
January 2000 -- 2.5%
January 2001 -- 3.5%
January 2002 -- 2.6%
January 2003 -- 1.4%
January 2004 -- 2.1%
January 2005 -- 2.7%
January 2006 -- 4.1%
January 2007 -- 3.3%
January 2008 -- 2.3%
January 2009 -- 5.8%
January 2010 -- 0.0%
January 2011 -- 0.0%
January 2012 -- 3.6%
January 2013 -- 1.7%
January 2014 -- 1.5%
January 2015 -- 1.7%
January 2016 -- 0.0%
January 2017 -- 0.3%
Before 1975, Social Security benefit increases were set by legislation. 
CPI-U and CPI-WAs a result of budget cuts and because little difference was seen between the CPI-U and CPI-W measures during 1978–1980, the BLS discontinued the separate but overlapping samples of individual items and outlets maintained from 1978–1980 for the CPI-U and CPI-W. Because maintaining two independent samples was not sustainable, BLS economists track spending and prices by using the CPI-U sample of geographic areas, outlets, items, and prices. The CPI-W is then derived by adjusting the weights for various spending categories, reflecting that the spending habits of the wage earner population differ somewhat from the all urban consumer population.  For more, see Why does BLS provide both the CPI-W and CPI-U?

Don't Miss Out!
Kirk Lindstrom's Investment Letter  Subscribe NOW

Kirk Lindstrom on Cover of Timer Digest

Click for FREE sample of Kirk Lindstrom's                    Investment Letter

Kirk's Newsletter Explore Portfolio Performance Graph
TOP of Page

Kirk's NewsletterSubscribe  -  Charts 
Kirk
                Windsurfing at Palo Alto in SF Bay in May 2009 KirkLindstrom.com

Home of "CORE & Explore®" investing.

Blog
Disclaimer:  The information contained in this web site is not intended to constitute financial advice, and is not a recommendation or solicitation to buy, sell or hold any security. This blog is strictly informational and educational and is not to be construed as any kind of financial advice, investment advice or legal advice. Copyright © 2016 Kirk Lindstrom. Note: "CORE & Explore®" was coined by and is a registered trademark of Charles Schwab & Co., Inc.