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COLA will probably be a let-down for most seniors on Social Security - Motley Fool
As we move into the fall months each year, we all look forward to finding out how much of a Social Security raise we will get next year. Each year in mid-October, the Social Security Administration announces next year’s Cost of Living Adjustment (COLA). According to many pundits, we can likely expect about at 3.4% to 3.6% increase. But will that be enough to offset the inflation we’ve all experienced for the past years? Well, no, it won’t, because the prices we pay inexorably increase at a rate much more than that.
According to this Motley Fool article, senior’s have lost nearly 14% of their buying power over the last 10 years, largely because COLA simply doesn’t keep up with the inflation seniors are actually experiencing. The article seems to blame the government’s inflation measuring methodology, but the problem actually runs deeper than that. Nevertheless, the expected 2027 COLA increase will be a welcome event for most, even if it doesn’t fully offset the inflation caused by past years of our government’s inflationary actions. Click here to read about how seniors are losing buying power due to inadequate COLA.
For additional perspective, you might also wish to read this AMAC Foundation article about COLA: https://socialsecurityreport.org/the-mysterious-cost-of-living-adjustment-cola/
Social Security is a complex topic. If you’re unsure about how these basics apply to you, or if you have any questions about your individual situation under Social Security or enrollment in Medicare, note that the AMAC Foundation provides a free-to-the-public advisory service to help Americans navigate the complexities of these programs. All questions are answered quickly, at no charge. Learn more about it here…