No Social Security COLA

People on Social Security will get no COLA — cost of living adjustment — for the next two years, according to this AP report. These automatic increases were adopted during the stagflation of the 1970s. Since the adjustments are tied to inflation and recent inflation has been negative, no adjustment is required. I suppose it would not make sense. But many seniors live on fixed incomes, and the average monthly SS payment is $1,153 this year. They spend a larger share of their income on health care than most other people. Their drug costs under Part D will rise slightly. Part B premiums will probably also rise. So seniors will have to get by on less. Our government is saying good luck until 2012.