Social Security cost-of-living hike coming, but might not matter for many
Social Security recipients are in for their biggest cost-of-living increase in years in 2022, but much of the extra cash is likely to get eaten up by higher costs. Beneficiaries could see their payments rise 6% to 6.1% in January, according to a recent estimate from the Senior Citizens League, an advocacy group for seniors. The Social Security Administration typically announces its annual cost-of-living increase in October and it then takes effect in January. That would be the biggest cost-of-living hike since 1983, when a 7.4% increase took effect.
Much of the extra cash will probably be consumed by higher prices and rising Medicare premiums, according to The Motley Fool, a finance website. Medicare Part B monthly premiums will rise 6.2% next year, the Fool said. That’s higher than the cost-of-living increase predicted by the Senior Citizens League.
Rising prices throughout the economy will also consume some of the raise beneficiaries will get. In July alone, consumer prices were up 5.4% year over year, according to Yahoo Finance. In August, food inflation was up 3.7% and electricity was up 5.2%, according to The Motley Fool. Shelter inflation was up 2.8%.
The figures suggest many Social Security beneficiaries will simply see their cost-of-living hikes disappear thanks to higher prices. Social Security’s overall purchasing power has declined 30% since 2000. That means if you spent $100 in benefits today, you’d wind up with nearly a third less in goods and services than you would have two decades ago.
https://www.pennlive.com/news/2021/10/social-security-cost-of-living-hike-coming-but-might-not-matter-for-many.html
The Grim Reality of Social Security's Record "Raise" in 2022
https://www.fool.com/investing/2021/09/26/grim-reality-social-securitys-record-raise-in-2022/
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