HomePersonal FinanceSocial Security COLA Benefits Reduced to 5.9% for 2022

Social Security COLA Benefits Reduced to 5.9% for 2022

Recently IMF revised its global growth forecast from 6 percent in July 2021 to 5.9 percent in October 2021.

Now with the latest consumer price index, Wall Street & Washington is worried about increasing inflation in the United States.

Some time back, Social Security Administration announced boosted benefits for senior citizens.

However, now the rise in inflation has made everyone worried including senior citizens who were looking forward to seeing the biggest COLA increase in 13 years.

When asked, Jimmy Fiore of Hickville wasn’t surprised as the consumer prices jumped way beyond what was estimated last month.

It was 5.4%, with food costs, especially meat and dairy, surging.

In an interview with CBS2’s Jennifer McLogan, Fiore says, “I’m 69 years old. I’ve been through inflation before. I would welcome that 5.9. I would like it”

After the recent rise in Inflation rates, Fiore and other retirees learn that their Social Security COLA benefits will decrease to 5.9%.

However, despite the recent reduction in the Social Security COLA benefits, the increase happening next year would be the biggest one in the last 4 decades.

When the cost of living adjustment comes to effect in 2022, it’s estimated that it would affect 70 million Americans.

Unlike Fiore, Joan Tynan, a retiree from Forest Hills, Queens is skeptical about all this. Tynan Says, “An increase is always nice, but if you pay for it down the road?”

Martin Melkonian, a professor at Hofstra University’s Zarb School of Business, said, “I suspect this may not be permanent, that we have great ability to produce enough output in order for us to avoid long-term inflation.”

Be it wall street, Washington, or consumers of all ages, everyone is dead worried as Energy, weather, labor, bottlenecks, transportation are all contributing to inflation.

Students on Rising Inflation

When CBS2’s Jennifer McLogan asked a nursing student Emily Lewis whether Inflation is a scary word, she said, “It is, considering I am living paycheck to paycheck as a college student.”

journalism student Alexandra Whitbeck said, “Entering the job market is terrifying if the word ‘inflation is hanging over your head like a sword hanging over it,”.

Many hope it’s a blip, with a temporary solution.

With many Americans panicking, Jake Tavello, vice president of Stew Leonard says, “Don’t panic, but buy ahead if you can. If something is on special, or you can buy ahead and freeze it, it would probably be good to do that, especially coming into Thanksgiving.”

Uniondale teacher Nathaniel Wilcox further added, “Stores have a lot of apps, coupons in the Sunday paper that I clip. I try to go from store to store to see where I can get the best buys.”

As the holidays season is ahead of us, experts have clearly advised against panic buying.

That’s all for now.

What do think about this? A one-time Cost of Living Adjustment is the right solution going forward?

Do let us know in the comments section given below.

Hikaru Y.http://theeastcountygazette.com
Hikaru is the lead editor at The East County Gazette. He covers news in & out of Sand Diego & the rest of California State.
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