Your Social Security Check Will Be Increased By How Much?
I have some good news and some bad news. Let’s start with the good news. CNBC is reporting that that cost-of-living (COLA) increase in your social security check will be increased by what some are estimating will be approximately 5.3%. That would clock in as the highest increase since 2009.
The Senior Citizens League is basing that 5.3% increase on the Bureau of Labor Statistics Consumer Price Index. The reason for the biggest increase since 2009 is where the bad news comes in. The Bureau of Labor Statistics Consumer Price Index is the agency that calculates our inflation rate and they are predicting a very high inflation rate for this year. Our annual inflation rate at the end of May was running at an annual rate of 5%. That is the highest rate since 1981 when the average for that year was 10.3%.
That means your increase will be spent on the increased prices of goods and services you will be purchasing. Cost of living increases are supposed to offset those goods and services increases, the problem is the increases we are seeing at the grocery store, gas stations and in the housing area are much larger than the CPI inflation rate. For example, the CNBC article points out the following:
- The price of gasoline saw the biggest hike, rising 56.2% from May 2020 to May 2021.
- Used car and truck prices rose by 29.7% in that one-year period.
- Other day-to-day items also saw a spike in prices. Bacon rose 13%, citrus fruits are up by 9% and milk is up 7.2%.
As you can read all of those price increases are higher to much higher than the CPI inflation rate.
One last thought, politicians will attempt to take credit for the large COLA increase in your social security check but in reality, the increase is because of the very negative consequences of their policies. One being their completely out-of-control spending of your and future generation’s tax dollars and paying for it by essentially printing money.
At least you will be getting an increase to help offset the true high inflation rate you are seeing. Although I would say the increased cost of goods and services is much higher than 5.3% as proven above. This is because they leave quite a few products out of their inflation calculation, that is a story for another time.
Once the COLA rate is determined the increase will not start until January 1, 2022.