Senior Conundrum: Inflation is Higher Than Upcoming COLA - AMAC & Fox Business

What is one to do?  Yes, the 5.9% cost of living adjustment scheduled to take effect January 1, 2022 is the highest in 40 years for Social Security recipients.  But prices are rising faster than that.  Kelsey Ramirez analyzes different inflation data, including the Consumer Price Index in this piece.  She concludes the protection afforded by the automatic COLA, and its calculation, may not be doing seniors the service is was intended to.  [Editor note: all but the wealthiest seniors did receive a third stimulus in April 2021 of $1,400 per person/$2,800 per couple; of course, many economists think that very stimulus has fueled the inflation we are now seeing.]  Read Ramirez’s full article here.

The Association of Mature American Citizens (AMAC) believes Social Security must be preserved and modernized.  This can be achieved with no tax increases by changing cost of living adjustments, the retirement age, and delayed credits.  AMAC advocates for a bipartisan compromise, “The Social Security Guarantee Act,” taking selected portions of bills introduced by former Rep. Johnson (R-TX) and current Rep. Larson (D-CT) and merging them with the Association’s own research.  One component is Social Security PLUS, a voluntary plan to allow all earners to have more income at retirement.  This component is intended to appeal especially to younger workers.  AMAC is resolute in its mission that Social Security be preserved and modernized and has gotten the attention of lawmakers in DC, meeting with a great many congressional offices and their staffs over the past several years.  Read AMAC’s plan here.

 

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