Quantcast

Social Security Recipients May Be in For a Rude Awakening Next Year

(MarketWatch) Social Security beneficiaries might not receive much of a cost-of-living adjustment next year — and some say recipients might not get anything at all.

COLA is linked to the consumer-price index, which has suffered lately because of low oil prices. Based on the CPI data between January and April of this year, COLA for next year would be zero, according to Mary Johnson, a Social Security policy analyst for The Senior Citizens League…

The adjustment in 2020 was considered minimal, at 1.6% this year, down from 2.8% in 2019. COLAs have averaged 1.4% over the last decade, down from the average 3% it was between 2000 and 2009.

But even if the adjustment was above zero, it still wouldn’t be enough for most retirees, studies show. Many Americans rely on Social Security benefits for some, and in some cases most, of their retirement income, but the benefit doesn’t align with actual cost of goods for retirees.

Since 2000, Social Security COLAs have increased benefits by 53% but the prices of what retirees typically buy has grown almost double, to 99.3%.

The problem: Social Security’s cost-of-living adjustment is linked to the consumer-price index for urban workers.

There’s another subset of CPI, known as CPI-E, which tracks elderly spending. The difference is primarily in health care and housing. Those expenses, including Medicare premiums and homeowners’ insurance, grow rapidly year over year, but benefit adjustments don’t reflect that growth.

[Read more…]

TRENDING NOW

GOP State Lawmakers Seek to Nullify Federal Gun Limits

(Associated Press) With Democrats controlling the presidency and Congress, Republican state lawmakers concerned about the possibility of new federal gun control laws...

Fauci’s Daughter Is a Software Engineer at Twitter, Which Suspends People for Disagreeing with Her Father

(The National Pulse) While Dr. Anthony Fauci is spearheading the nation’s COVID-19 response, his daughter is working for the social media platform...

SUV in Crash Where 13 Died Came Through Hole in Border Fence

(Associated Press) The 13 people killed in one of the deadliest highway crashes involving migrants sneaking into the U.S. had entered California...

Federal Court Unseals Complaint Detailing Secret Plot to Damage Papa John’s Founder and Company Brand

(PRNewswire) The U.S. District Court for the Western District of Kentucky has ordered that an Amended Complaint filed by Papa John's founder and former Chairman...

Trump’s Cash Plea Could Complicate GOP Fundraising Efforts

(Associated Press) "Trump needs you," one fundraising email implored. "President Trump's Legacy is in your hands," another pleaded.