A silver lining in rising gas prices?
Anyone who drives has certainly noticed by now that the price of gasoline has been steadily rising and, by all projections they are expected to continue upward throughout the summer. This is due to rising crude oil prices, especially on the domestic market. But while that is not a pleasant thing for those who need to regularly fill their gas tanks, it may suggest something else more positive – a larger Cost of Living Adjustment (COLA) for American seniors collecting Social Security. COLA increases are determine each year using the Consumer Price Index for Urban Wage Earners & Clerical Workers (or “CPI-W”) and transportation costs are a significant part of that index. If this year’s 3rd quarter CPI-W is measurably higher than last years, a larger COLA increase would result. In this Motley Fool article, Sean Williams explains this phenomenon in some detail and suggests why Social Security recipients should be excited about rising oil prices. Click here to read more.