Beginning in January 2010, Seniors will not get a cost of living adjustment in their Social Security checks. Normally, Seniors get a two to three percentage increase in benefits. That might seem like much but with increasing medical cost rising each year that is going to hurt.
Social Security benefits are adjusted every year to keep up with inflation. Adjustments are based on the Consumer Price Index for urban wage earners between the third quarter (July-September) of the previous year and the third quarter of the current year. The 2010 COLA will be based on a period marked by sharp drops in prices and deflation.
This will also be the case for the year 2011 as well unless Congress makes some changes. Senior won’t see a modest increase until 2012.