As we’ve kept our finger on the pulse of the economy over the past year, we’ve continued to hear a common complaint: The prices of gas, food, and other essentials seem to be rising more quickly than usual.
Indeed, data from the Consumer Price Index, which measures inflation, is currently reflecting that reality. Gasoline is up a whopping 56.2 percent from May of last year to May 2021. Milk is also up 7.2 percent and citrus fruits rose by 9 percent. Those are just a handful of examples that represent an overall trend toward higher prices.
That’s the bad news. The good news is that, hopefully, Social Security checks will also rise in 2021 to help retirees adjust to changing budgets.
At least, that’s the prediction by the Senior Citizens League, a nonpartisan organization that represents older Americans. After analyzing data from the Consumer Price Index from January through April, the League released their prediction of an impending 4.7 percent increase to Social Security checks. Now, with new data from May and June included in their calculations, that estimate has been revised to a 5.3 percent cost of living adjustment.
But are they correct? Time will tell, as four more months of data must be tallied before Social Security makes a determination about next year’s benefits. We will definitely keep an eye on this issue and update you as we learn more.
In the meantime, remember that Social Security benefits are only meant to serve as a supplement to your retirement income. If you feel concerned about your retirement plan, give us a call. We can tell you more about establishing streams of income that potentially keep pace with inflation throughout your retirement.