With the release of the CPI report this morning, we now know the Cost of Living Adjustment (COLA), and the contribution base for 2017.
Currently CPI-W is the index that is used to calculate the Cost-Of-Living Adjustments (COLA). Here is a discussion from Social Security on the current calculation (0.3% increase) and a list of previous Cost-of-Living Adjustments. Note: this is not the headline CPI-U.
The latest COLA is 0.3 percent for Social Security benefits and SSI payments. Social Security benefits will increase by 0.3 percent beginning with the December 2016 benefits, which are payable in January 2017.
The contribution and benefit base will be $127,200 in 2017.
The National Average Wage Index increased to $48,098.63 in 2015, up 3.48% from $46,481.52 in 2014 (used to calculate contribution base).