Increasing US Social Security COLA: What you should know?

“The public should know that both ends of the political spectrum pose risks to the issue of the COLA review,” he said. “Some politicians think it’s too low, others think it’s too high.”

If Social Security adjusts to inflation, why is it always said that retirees have a steady income?

In fact, it is not an accurate description.

“Those who get Social Security benefits certainly don’t live on a steady income,” he said. “They have great features that increase over time when consumer prices go up.”

But this does not mean that what Social Security provides is sufficient to cover the needs of retirees. For example, the Seniors Index, which measures the cost of living for older Americans, shows that for one person renting a home, the average benefit covered just 68 percent of basic living expenses in 2021 (housing, food, transportation, and health services). ). For the older couple, the similar figure was 81 percent.

“Social Security does not and will not cover necessary expenses if benefits continue to grow on the basis of cost of living alone,” said Jan Machler, the professor who created the index.

Census Bureau data released last month revealed that the poverty rate has risen among older Americans, though Improvement in all other age groups. The poverty rate among Americans over 65, which was 8.9 percent in 2020, increased to 10.3 percent in 2021. Put another way, 5.8 million older Americans were below the poverty level. Federal poverty line in 2021, a statistic that added another 950,000 people year.

“These numbers are concerning, as they indicate a long and continuing trend of increased poverty among older adults than we think is yet to come,” said Ramsey Alwyn, president and CEO of the National Council on Aging. “There are a lot of elderly people in a very fragile financial position. Once a crisis occurs, they will face financial difficulties, and the poverty figures express this situation.”

I haven’t asked for Social Security payments yet. Am I already missing out on the big tweaks to next year’s COLA?

No, if the benefits suit you.

The annual COLA adjustment is applies to the amount of your benefits, Even if you haven’t asked for it yet, from the year you can start asking for it (at age 62). If you are thinking Wait to submit your application Because you think you’ll receive higher monthly payments later, not receiving COLA adjustments should not be a discouraging factor.