Great news! Social Security in their generosity and wisdom have given retirees the biggest bump in their payouts in over 40 years. That's right, folks, a 5.9% increase! Just like a Christmas tree, 2022 is going to be lit. Source
This is really great because the monthly inflation numbers for the last 12 months are only 5.3%. In other words, inflation since this time last year (August to August) has only gone up 5.3%. Source
In other news, the national price of gas has gone from $2.31 per gallon on August 31 of 2020 to $3.23. Candidly, I'm not great at math, but that's higher than a 5.3% or a 5.9% rate of increase. Furthermore, the cost of fuel seeps into the cost of travel, manufacturing, shipping and food.
So as you celebrate your "raise", remember cost of living adjustments (COLA) factor in the cost of more than just gas, groceries and medical care. But retirees on social security aren't buying flat screen TVs and washing machines quite as much as younger families. But gas, groceries and medical care are daily necessities. In the big scheme of things, this is a diet COLA. Want to discuss further? Click here to contact me.