With inflation at 40-year highs some seniors feel this year’s big cost of living increase in Social Security is falling short. Yahoo Finance had an article last week that said, “According to a new survey by the Senior Citizens League, 54% of older Americans think the 8.7% increase in the Social Security cost-of-living adjustment (COLA) this year won't keep up with inflation.”What’s troubling is that the government’s rapid interest rate increases over the last year have done little to slow infl...
With inflation at 40-year highs some seniors feel this year’s big cost of living increase in Social Security is falling short. Yahoo Finance had an article last week that said, “According to a new survey by the Senior Citizens League, 54% of older Americans think the 8.7% increase in the Social Security cost-of-living adjustment (COLA) this year won't keep up with inflation.”
What’s troubling is that the government’s rapid interest rate increases over the last year have done little to slow inflation. The latest government reports reveal inflation is remaining elevated at 6.4%. The government has stated they are resolved to bring inflation levels down to the 2% range, which means we have a long way to go at our current rate.
It’s a juggling act. The economy has continued to grow despite the rate increases which is a problem for the government. The Federal Reserve is attempting to not break the economy, and get inflation lowered.
Interestingly, for the first time in recent memory the government is on the other side of the table from investors like you and me. Generally, the government is trying to keep the economy going and the stock market growing. AARP reports, “Nearly half (48 percent) of households headed by someone 55 and older lack some form of retirement savings, according to the latest estimates by the U.S. Government Accountability Office.”
So, the government is now on the side of the table of folks with little to no savings. What I mean by this is the government is trying to lower the cost of things for those most impacted by price increases: those with little savings. We’ve got a front row seat to see how this plays out.
What should you do? Listen in to find out...
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