HEADLINE:
Social Security checks could grow by nearly 11% next year if inflation persists
Source: FORTUNE
Text: Social Security recipients could see their monthly checks balloon by 10.8% next year if inflation persists at its current rate, a recent analysis finds.
But wait, the article later says: But given inflation has remained stubbornly high all year—with the consumer price index increasing 8.6% in May—the increase will likely fall somewhere between those two figures, potentially around 8.8%, says CRFB. That would still be the fourth highest COLA ever.
8.8% is not 11%, but no matter, whatever sells publications works.
QUINNSCOMMENTARY 
Gas prices don’t affect us that much (except psychologically, maybe) since we don’t drive much. Housing costs are stable, mortgage locked in. Groceries and eating out are what we notice most, we haven’t changed our diet, just decreased our monthly savings and investment. My wife is leery about putting more money in the market. I’m Leery about keeping cash during inflation. We have what they recommend, three to six months living expenses in FDIC savings.
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Then again, now that I recall, in 2008, while still working, I took a night school class on personal finance. The 2008 “Great Recession” was a frequent topic. One man asked about those of us who have recession proof jobs and locked mortgages, does the recession really hurt us? Because he seemed to feel unaffected.
I asked him if he had family or close friends out of work, because we did, and yes, it affects us greatly. People didn’t really demand, or even ask much, but we couldn’t help but give financial aid if we could.
As far as I know, this time around, most of the family is OK
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SD – Take a look at I-bonds, currently paying 9.63 %. Way better than the .05 % I get at the credit union. I now use ZERO interest credit cards for any emergencies, I love using the Banksters money for free.
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I do not care what the COLA turns out to be in Jan, it never keeps you even with inflation.
Because you have been paying higher prices for 12 months. I am now spending $300 more per month, but my Jan COLA was only $205 more per month. The only way to make it, is spend less, or have savings to cover additional costs. Having zero credit card debt or credit card debt that has zero interest payments. I have been using zero interest credit cards for over 5 years, earning over $500 in cash back every year, never paying one cent in interest.
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And for all the higher costs and impending taxes we should be greatfuul?
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We aren’t gaining ground for sure, but it helps keep even.
Dick Richard D Quinn Blogging at Quinnscommentary.net and HumbleDollar.com Twitter @quinnscomments
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The increase will be welcome, however, along with these approx figures comes what will the Medicare figures be as a net increase? It always has such an impact on the COLA raises for seniors. I read that possibly it will be lowered, however, isn’t there a percentage of raise of SS COLA that effects the Medicare premium? I read the cost of the Alzheimer drug was miscalculated which caused such an increase this past year in our premium so there may be a reduction in Medicare, however not with that much of an increase. in SS COLA Medicare premiums are close if not more than regular insurance costs. Do you have any information on those figures ? Thanks. Your comments are always appreciated especially now in an inflationary period of time.
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Pretty good bet the Medicare Part B premium will stay as it is now, no increase. Politics you know and an election year too. 😀
Dick Richard D Quinn Blogging at Quinnscommentary.net and HumbleDollar.com Twitter @quinnscomments
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No formal announcement expected until Nov 11th, 3 days after the election. Though I am expecting the premium to remain unchanged thanks to the overcharge in 2022 premium.
Interesting that there is so much glee about the SS COLA even though the pending depletion of fund reserves is just few years away. I guess it is a case of wanting our cake and eating it too.
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The SS reserve cannot do anything but decrease unless the revenue increases. The 2022 Medicare trustee report already projects no change in the Part B premium for 2023 at $170.10
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Although 8.8% or higher COLA may be welcome or necessary, it really is a sign of how bad things are in this economy and it should be worrisome.
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Very true
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I’ll take it no matter higher or lower.
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