Johnson points out that though 20 are likely to see record increases, they won’t be able to make up for years of increases that averaged around just 1.4%. Though inflation is hard on all consumers, it is particularly painful for retirees who live on a fixed monthly income. This year, the average retiree’s checks are $92 bigger each month, says Johnson. The COLA was just 1.3% in 2021, and raised Social Security Income by an average of about $20 per month. The CPI-W weights clothing, food, and transportation costs more heavily than the CPI-U. The Social Security COLA is calculated based on the Consumer Price Index for Urban Wage Earners and Clerical Workers, or CPI-W, a more general inflation measure than the headline Consumer Price Index for all Urban Consumers, or CPI-U. “I have never witnessed inflation this high,” Johnson says. The official Social Security COLA will be announced in October, which means there is still six months’ worth of economic data to be taken into consideration before it is finalized. Then, make sure to join us in urging politicians in Washington to pass this essential bill now.The 2023 cost-of-living adjustment, or COLA, could be as high as 8.9%, according to a preliminary analysis released Tuesday from the Senior Citizens League, a nonpartisan seniors’ advocacy group. Learn more about our bill and how it can help seniors nationwide. This allows seniors to receive more money that can be used for any health complications, medications, and regular check-ups that are needed. One way the bill does this is by ensuring all COLA calculations include healthcare costs. We support a groundbreaking bill – The Senior Citizens Bill of Rights – that will guarantee senior citizens have more financial security. That is why Senior Security Alliance is taking action. The increasing healthcare costs cannot continue to outpace inflation. Creating A More Financially Secure Future Healthcare costs, for example, have eaten away at seniors’ COLAs.īecause of this, it is likely that any 2022 COLA calculated using the current formula will not be enough. However, this does not fix the diminished buying power seniors have faced over the past two decades. However, what exactly does inflation mean for beneficiaries?Īccording to National Interest, the COLA adjustment is meant to account for inflation, allowing senior citizens to retain their buying power as prices increase. Higher inflation has created larger COLA estimates from many different individuals. In fact, Forbes explains that it is very possible the COLA, no matter what it ends up being, would be “absorbed by higher Medicare Part B premiums.” COLA Calculations Despite this great news for seniors, this increase may not be enough for retirees relying on benefit payments. However, it’s not quite time for celebration yet. This is a significant estimate for retirees nationwide as COLA calculations have not given a raise this high since 1983, as Forbes reports. Recent speculation has put the 2022 cost-of-living adjustments (COLA) for beneficiaries anywhere from an increase of at least 5.8%.
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