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Inflation Likely to Fuel Higher COLA Next Year
If you’ve spent any time in a supermarket lately, or if you buy gasoline for your vehicle or eat out occasionally, you’re already aware that inflation is taking a big chunk out of your disposable income. Prices have risen sharply in recent months, and that is already being reflected in monthly changes to the national Consumer Price Index, from which annual Social Security (and other) Cost of Living Adjustments (COLAs) are computed. Early predictions are that Social Security recipients may see an increase of 4% – 5% next year, but the actual COLA increase won’t be known until October, after the end of the 3rd quarter. While a sizable bump in Social Security will certainly be welcomed by most, the warm feeling from a higher COLA may be largely cooled by paying more for nearly everything you buy. This FedSmith article by Ralph R. Smith discusses the possible 2021 COLA increase. Click here to read more.