How much will your social security check be increased?
I have good news and bad news. Let’s start with the good news. CNBC is report that this increase in the cost of living (COLA) of your Social Security check will be increased by what some estimate to be around 5.3%. This would represent the largest increase since 2009.
The Senior Citizens League is basing the 5.3% increase on the Bureau of Labor Statistics Consumer Price Index. The reason for the biggest increase since 2009 is the origin of the bad news. office of Labor Statistics Consumer Price Index is the agency that calculates our inflation rate and they predict a very high inflation rate for that year. Our annual inflation rate at the end of May was an annual rate of 5%. It’s the upper since 1981, when the average for that year was 10.3%.
This means that your increase will be spent on increasing the prices of the goods and services you buy. The increases in the cost of living are supposed to compensate for these increases in goods and services, the problem is that the increases we see in grocery stores, gas stations and in the residential area are much larger than the rate of inflation of the CPI. For example, the CNBC article points out the following:
- The price of gasoline saw the biggest increase, increasing 56.2% from May 2020 to May 2021.
- Prices for used cars and trucks increased 29.7% during this one-year period.
- Other articles in the daily also saw prices skyrocket. Bacon increased by 13%, citrus fruits by 9% and milk by 7.2%.
As you can read, all of these price increases are greater than much higher than the rate of CPI inflation.
One final thought, politicians will try to take credit for the large increase in COLA from your Social Security check, but in reality the increase is due to the very negative consequences of their policies. One being their completely uncontrollable spending of your tax money and that of the next generation and paying it by essentially printing money.
At least you’ll get a raise to help offset the real high rate of inflation you’re seeing. Although I would say that the increase in the cost of goods and services is well over 5.3% as proved above. This is because they leave a lot of products out of their inflation calculation, that’s another story.
Once the COLA rate is determined, the increase will not begin until January 1, 2022.
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