The news hit hard. When San Diego radio station KFMB reported that there would be no cost of living adjustment (COLA) in 2016 for people who receive Social Security disability benefits, hearts fell. After all, many recipients struggle to meet their monthly bills as it is and they were hoping for at least a small boost in benefits.
This is only the third time in the past four decades that the Social Security Administration has kept its payments to retirees and disabled workers flat. "No COLA increases may not sound like a big deal to a lot of people. But when Social Security is the largest piece of someone’s income, it becomes a very big deal," said one financial advisor.
The cost of living is tied to the Consumer Price Index, which has actually fallen slightly over the past year, the Christian Science Monitor reported. Because fuel prices have steadily declined over the past 12 months, there's no increase in inflation and therefore no COLA for SSDI recipients.
The publication says that although the news hits hard, you can still gain a sense of control over your finances. One way is to create a budget. If you don't already have one, make one. It helps you see where you spend money and possibly find corners to cut.
Another suggestion: consider part-time work. We know SSDI recipients can't return to their former jobs, but in some cases, they can perform limited, part-time duties that can supplement their income. You can check the Social Security website for details on how much you can earn per month before putting any benefits at risk.
Please feel free to share any cost-cutting measures you have implemented in the Comments section. Also feel free to check out our page called "San Diego Lawyer For Denied Social Security Disability Claims." It gives you more information about how the Law Office of Jennifer Zorrilla puts knowledge and experience to work for you in the SSDI appeals process.