UNCOLA:

Social Security cost-of-living adjustment expected to be lower (AP, 10/18/06)

The nation's nearly 49 million Social Security recipients are in line to get a smaller average increase in their monthly benefit checks in 2007 than they did this year, though less of the gain will be eaten up by rising Medicare premiums.

Private economists are predicting an increase of around 3.4% for 2007. That follows a benefit increase of 4.1% this year, which was the largest percentage rise in 15 years.

Phasing out the COLA altogether would be a good way to continue the transition to private accounts.

Posted by Orrin Judd at October 18, 2006 8:27 AM