The Senior Citizens League reports that those living off Social Security continue to see an uptick in the cost of living despite declining inflation rates.
Inflation rates are decreasing, but the cost of living for Social Security recipients continues to rise.
Living on a fixed income means that every penny counts. According to the Senior Citizen League’s most recent membership survey, 34% of retirees admitted to visiting a food pantry or applying for food stamps within the last 12 months, which may not change any time soon, given a recent forecast of the Social Security cost-of-living adjustment also known as COLA.
“Social Security’s cost-of-living adjustments (COLAs) are based on the average inflation rate during the third quarter, the three-month period that includes July, August, and September. Curiously, COLAs are calculated using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), a subset of the better-known CPI-U,” according to Motley Fool.
While the most recent report shows that Social Security recipients may start to see their checks fall behind the overall pace of inflation, it is important to note that price surges are likely at any time of the year. The COLA may not account for the changes. The official forecast for the next year is generally announced in October.
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Source: Black Enterprise
