Posted on 10/13/2021 5:52:54 AM PDT by blam
Rising inflation is expected to lead to a sizeable increase in Social Security's annual cost-of-living adjustment, or COLA, for 2022. Exactly how much will be revealed Wednesday morning after a Labor Department report on inflation during September, a data point used in the final calculation.
Over the last 10 years, the Social Security COLA has averaged about 1.7% annually as inflation remained low. But the economic recovery from the coronavirus pandemic has triggered rising prices for a wide range of goods and services, and that's expected to translate to bigger checks for retirees.
Policymakers say the COLA works to preserve the purchasing power of Social Security benefits, and shouldn’t be seen as a pay hike for retirees.
At one time Congress had to approve inflation increases, but starting in the mid-1970s lawmakers turned that function over to nonpartisan experts within the government bureaucracy. The annual review is now tied to changes in an official measure of inflation and proceeds automatically and with no political brinksmanship.
2022 COLA Could Be Big
Stay tuned.
The Great Recession saw a COLA increase of 5.8% for 2009, and the number for next year may rival that.
This summer, government economic experts predicted a COLA in the range of 6%. If that's the case, it would be the biggest Social Security hike the vast majority of baby boomer retirees have seen. Up to now, they've collected meager to modest annual adjustments, not counting three years for which there was no COLA because inflation barely showed a pulse.
A 6% COLA would increase the average Social Security payment for a retired worker by close to $93 a month, to $1,636 next year. Compare that to this year's COLA, worth only about $20 a month.
As the economy recovers from the shock of coronavirus shutdowns...
(snip)
(Excerpt) Read more at newsmax.com ...
Well, well......... a new trick for an old democrat dog
Buy votes with the COLA
(they are free)
“nonpartisan experts” no such animal exists.
Of course, the premiums for Medicare will go up by the same amount in dollars.
I’m betting that any COLA increase will be eaten up by health-care premium increases. So seniors like me will just break even.
Oh, wait. I won’t break even because there will be nothing left to balance out food and energy price increases. Living in a ‘Build Back Better’ paradise is gonna be tougher than I thought.
Don’t buy that new Ferrari just yet.
“Of course, the premiums for Medicare will go up by the same amount in dollars.”
always has in the past
No COLA - PEPSI.
Cheeburgi Cheeburgi Cheeburgi
If you make “too much” in their eyes, they confiscate to pay for others, even though it’s my money. Happened last year and likely will happen again.
Fighting inflation with more spending.
They can give me the COLA, but I still ain’t voting for them. Screw ‘em..
Sure. And all the health premiums go up 10%.
That has nothing to do with Biden, that formula has been in place for decades. Biden will try o take credit but our answer should be it’s because of the huge jump in inflation.
OG Geeez, Same ole crap. Its still spinning wheels. 1M today buys you what 100K bought you in 1960. We keep shoveling crap against the tide, but they only keep giving us bigger shovels. Are we striving for the wheel barrel of money to buy a loaf of bread? Better hold on to those Zimbabwe bank notes, they may become our currency.
Naw....they left me with $1 gain last time around.
Inflation shrinks the buying power of the dollar. Among other things, it reduces the value of social security, pensions and annuity payments.
The pensioner does not cause inflation, the government does. Inflation is an insidious means to reduce payment obligations. COLAs are required by law for SS payments. IMHO, other pension accounts (company/union pensions, annuities) that were funded by the pensioner should similarily be required by law to have COLA adjustments.
And people receiving food stamps have received a 25% increase in benefits. Go figure.
True and it’s never been more self-evident. Never, ever trust anyone who says different.
Prices go up the same for both lowest & highest groups.
how was that gas station coffee that buck bought ya?
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