One of the great concerns of people who are in retirement has to see that their retirement payments, in many cases, have not increased based on the current inflation that exists throughout the United States, a situation that puts all the retired people in serious financial trouble.
For this reason, 69 million Americans who collect Social Security, after almost 40 years, could benefit from an increase that can be equivalent to 6.1% due to the increase in inflation. This has come to light after the Senior Citizens League raised its voice for the same.
If this is authorized, the Social Security Administration will make the corresponding adjustment for it to be implemented beginning in January. That means the seniors and other Social Security beneficiaries would receive the cost of living adjustment in early 2022.
According to the available data, since 1983, there has not been a considerable increase in the cost of living adjustment, after which the increases have been slim. In 2021, the adjustment represented 1.3%, a figure that is insufficient if one will think about how inflation has skyrocketed.
CBS reported that according to a new forecast from the Senior Citizens League, an association that fights for the rights of the elderly, Social Security recipients next year will see the largest increase in decades, estimating an increase of 7.4%.
Although there is no officially defined percentage, the Social Security Administration will announce the figure that will correspond to the 2022 annual cost of living adjustment next October. Until now, it is expected that the adjustment represents at least more than 6% due to the conditions that exist.
Social Security uses the average inflation rate for the previous three months to determine the annual cost of living adjustment. Although experts and representatives from the Federal Reserve have stated that inflation will decline, a considerable adjustment is expected to be provided.
Despite the fact that the increase in Social Security benefits is great news, retired Americans will have to continue to deal with the little salary they receive per month with the constant expenditure increases that have arrived since April in basic products and energy such as gas.
Apart from the inflationary phenomenon that is being experienced at this time, the Senior Citizens League, through a study, asserted that Social Security payments had lost purchasing power for all those who receive them since 2000. For this reason, the organization has urged congressmen to do what is necessary to make adjustments based on the reality that older adults live throughout the United States since the precarious conditions they live in can have them one step away from poverty.