On Benefit Increases
Many retirees rely on their Social Security benefits as a primary source of income. Each year without an increase hurts these seniors the most as their benefits don’t match the rate of inflation. Social Security already lags behind inflation with the COLA system, and years without an increase can be a double whammy putting them even further behind. The COLA system only increases when certain criteria are met, it takes in to account not only essentials such as food and water but also prices of services and gas. Last year saw no COLA increase for benefits because of gas prices dipping so low in the latter half of the year yet prices on other commodities went up. The seniors that this affects the most are those that already travel very little, now they are spending more on other essential items without seeing the benefit of lower gas prices. For more information on this subject, visit this article by Brian Feroldi with The Motley Fool.
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