Read the following excerpt from a news story. Then ask yourself. Why are older Americans struggling financially because of COVID-19? (🔴) If there is paltry inflation, why would the COLA be any higher? What makes people take more out of savings? I’m guessing it is spending.
Older Americans already struggling financially amid the COVID-19 pandemic probably won’t find much solace in their Social Security checks next year.
The 68 million people – including retirees, as well as disabled people and others – who rely on Social Security are likely (actually confirmed) to receive a 1.3% cost-of-living adjustment next year because of paltry inflation, according to an estimate by the Senior Citizens League, an advocacy group. For the average retiree who got a check of $1,517 this year, that would mean an additional $19.70 a month.
“It makes people have to take more out of savings,” says Mary Johnson, a policy analyst for the Senior Citizen League who releases an estimate ahead of next month’s official government figure. “Other people who don’t have savings will go into debt. Many may go into poverty.”https://www.usatoday.com/story/money/2020/09/15/social-security-benefits-checks-could-rise-1-3-next-year/5798699002/?for-guid=fc581102-3b74-4cd1-8565-3568488453c9&utm_source=usatoday-Retirement&utm_medium=email&utm_campaign=baseline&utm_term=hero
IT as mentioned above is presumably the low Social Security COLA, but that has nothing to do with the pandemic. In the vast majority of situations, seniors are not struggling financially as a result of COVID.
THERE IS A LESSON IN ALL THIS a lesson repeated over and over and which mostly goes unheeded by younger Americans. Unless you want to greatly change your lifestyle, you cannot, nor was it ever intended to live in retirement on Social Security alone.
(🔴) The fact is older Americans are mostly not struggling financially from the pandemic (except some of those still working and needing that income in retirement.)