When the news broke that the Social Security Cost-of-Living Adjustment (COLA) was going to be 5.9 percent for 2022, people were delighted. Now, as we watch inflation surge and food and gasoline prices spike, we realize it might not be big enough.
Given the current rate of inflation, early data from the Bureau of Labor Statistics indicates the 2023 COLA could be even bigger, possibly around 6.2 percent. Will it be enough to offset the negative impact of inflation?
The problem with inflation is that it not only affects your buying power but also makes your retirement savings and investments not worth as much as they once were.
Social Security COLAs are based on data reflected in consumer price indices. But they rely on a look back, not a forecast of future data.
Even with a potentially larger COLA in 2023, Social Security beneficiaries should start considering how they budget for this year and what spending cuts they may want to put in place for 2023.
Council of Seniors Wants to Help Build Your Benefits
Inflationary times put a real pinch on seniors’ wallets. Here at Council of Seniors, we recognize the urgent need for Congress to pass The SAVE Benefits Act. To make up for inadequate Social Security cost of living adjustments (COLAs) in some recent years, action is needed right away to put $581 back in eligible seniors’ pockets.
Sign our petition without any delay. Congress needs a wake-up call about how many people support this bill.
Do you have a budget for 2022 to help with your spending? Leave us a comment and let us know.
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