2022 Social Security Checks – Huge COLA Raise Ever – Funny Thing is Inflation Increases too?

social security checks huge cola rise
social security checks huge cola rise

The possible increase can be seen as high as this much…, But what about the high inflation rates, Rise of the prices of everything from electricity bills to your gasoline.

The most increase which is expected to be done by next year is a 5.3 percent increase in Cost-of-Living Adjustments as decided by The Senior Citizens League. They have completely based their calculation on every tiny detail they had received by the Consumer Price Index data entirely in the month of May. Ralph Smith human resources expert and author of the Senior Citizens League website shared recently, that no one knows the accurate percentage of the Cost-of-Living Adjustments increase which everyone will see in January. This increase will be different than some of the hikes done recently in some years when there was no such rise.

Social Security Increase Will Be Completely decided by the upcoming Month – Biggest Cost-of-living Adjustments Bump In 13 Years

Members who are eligible for Social Security will be informed about the final increase in the Cost-Of-Living Adjustments also known as COLA for the following year 2022. The possible increase is expected to be as high as 5.3 percent.

The Biggest increase in Cost of living Adjustments Rise  In 13 Years

The estimated 5.3 percent average growth in Cost-of-Living Adjustments will be the highest rise in the past 13 years. The rise of Cost-of-Living Adjustments for this year was only by 1.3 percent. In the month of April, of the upcoming year, 2022 Cost-of-Living Adjustmentsincrease is estimated at 4.7 percent as reported.

The increase is completely dependant on the performance of the  United States economy in the coming few months. Moreover, the increase will be completely dependant on whether the Federal Reserve will increase its interest rates to handle the higher inflation.

The most increase which is expected to be done by next year is a 5.3 percent increase in Cost-of-Living Adjustments as decided by The Senior Citizens League. They have completely based their calculation on every tiny detail they had received by the Consumer Price Index data entirely in the month of May. Ralph Smith human resources expert and author of the Senior Citizens League website shared recently, that no one knows the accurate percentage of the Cost-of-Living Adjustments increase which everyone will see in January. This increase will be different than some of the hikes done recently in some years when there was no such rise.

Social Security Checks
Social Security Checks

How can you calculate the Cost-of-Living Adjustments?

The Cost-of-Living Adjustments spike is completely dependent on the rates of all the goods and services provided. As such prices can range variable and all the advantages provides to retirees, people who are disabled for the long term, and all those who survived along with deceased workers also rise. Since 1975, Cost-of-Living Adjustments of Social Security have been calculated directly in line with the user Price Index for all the Workers working for a wage and Clerical Workers as well. The CPI-W  is also provided to the clerical workers for the increased amount. It will be provided only from the third quarter, which will begin from July to September, to calculate next year’s Adjustments.

Would The Increase actually Help Social Security Beneficiaries?

In spite of the next year’s Cost-of-Living Adjustment raise is the biggest thing done in the past 13 years, it has been reported that it might not be of that help. For any average retired worker who at present must be receiving $1,658 per month, the overall calculated increase by the next year would mean a $94 extra payout. However, due to the higher amounts for the goods and services that the officials use their payouts on, the increase may not be of help.

Inflation costing US households extra $175 per month, economist says

For households earning the US median annual income of about $70,000, the current inflation rate has forced them to spend another $175 a month on food, fuel and housing, according to Mark Zandi, chief economist at Moody’s Analytics. 

“That’s the equivalent of a full grocery, electric or cellphone bill,” Zandi said.

Although government officials have called the inflation “transitory,” it’s running at a 30-year high, and has been for months. 

Unpredictable supply-chain issues, including a record number of more than 70 cargo ships waiting to dock at the Port of Los Angeles, have made it difficult to predict when prices will stabilize. 

To make matters worse, a trucker shortage has exacerbated the situation and shows no signs of abating. Everything from wood to electronics is becoming scarcer and more expensive. 

Many consumer experts do not see any immediate relief in sight — with some bracing for a surge in credit-card debt. During the pandemic, many consumers had paid down debt because they were spending less while collecting larger unemployment checks. 

But since April, credit-card balances and delinquency rates have been ticking up after decelerating for most of the pandemic, according to Zandi. Delinquencies are 1.54 percent as of Sept. 21, compared with 1.30 percent on April 21. 

“Price increases will continue until the middle of next year,” predicted Gordon Haskett analyst Chuck Grom, pointing to a PepsiCo announcement this week that consumers can expect another round of price hikes in early 2022 on the company’s snacks and beverages. 

Indeed, a 10-ounce bag of Lay’s potato chips — Frito-Lay is owned by PepsiCo — cost $3.75 in August, 50 cents more than a year earlier at Dollar General stores in the Southwest, Grom said. 

The prices of other items have also ratcheted up at the discount chain, including a dozen 12-ounce Coca-Cola cans that cost $5.75 in August — 50 cents more than in 2020 — at its Southwest stores, and a half a gallon of 2 percent store-brand milk that now costs $4.49, 74 cents more than a year earlier, according to Grom. At Family Dollar stores in the Northeast, the 12-pack of Coke cost $6.90 in August, up $1.50, and a can of Folger’s coffee costs 85 cents more, $8.80, he found. 

In the Big Apple, grocery chains Gristedes and D’Agostino’s have increased prices by as much as 15 percent on chicken wings and beef, 10 percent on milk and 5 percent on eggs, while non-food related items have gone up by about 10 percent, according to owner John Catsimatidis. 

What’s more, some consumers are reporting that it has become more difficult to cover their usual expenses. 

The number of US households that report that it is “very difficult” to pay for their usual expenses has increased by 8 percent since early August, to 26.5 million, according to the Oct. 6 Census Bureau’s Household Pulse Survey. 

Allison recently reached out to a debt-relief attorney, Leslie Tayne, to help her consolidate and lower her outstanding debt, which includes a hefty student loan. 

“My business has exploded,” Tayne told The Post. 

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