Are There Benefits to Inflation Beyond Just Social Security’s Increase? - AMAC & Yahoo Finance
The 8.7% cost of living adjustment coming in January 2023 is welcome news for seniors on Social Security, even if it only allows folks to just keep pace. But Selena Fragassi notes here that there are other benefits to higher than normal inflation. Rates are starting to spike on bank savings accounts and certificates of deposit, and more seniors save than apply for new mortgages. Federal income taxes will be lower due to bracket adjustments. Retirement plan contribution limits are increasing significantly on 401k plans and IRAs, which is especially helpful for near retirees. Fragassi admits inflation is still painful but nonetheless explains the positives in depth in the full article here.
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