“The changes don’t make sense to me,” said Donna Purchase. Older Americans say soaring prices for everyday items have blindsided them. In response to the announcement posted on the Social Security Administration’s Facebook page, commenters fretted that even a 6 percent bump in their benefits wouldn’t keep up with the climbing cost of gas, groceries and other expenses, including health insurance and prescription drugs. This worries economic experts as well as ordinary Americans - even those benefiting from the increase - the largest by percentage since 1982, when it rose by 7.4 percent. Shepherdson also pointed out that increases in fuel and food - two components stripped out of the so-called core CPI, even though they reflect some of the most common things people pay for on a regular basis - were high. “The fading of the delta wave is very likely to trigger a clear rebound in the Covid-sensitive components,” Ian Shepherdson, chief economist at Pantheon Macroeconomics, said in a research note.
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According to a recent survey by Allianz Life Insurance Company of North America, nearly 4 in 5 Americans are bracing for rising prices over the next year 72 percent said they worry that the higher cost of living will jeopardize their retirement. The Consumer Price Index also measured a 0.4 percent increase on a month-to-month basis, and Americans are becoming more worried about the long-term implications for their financial security. The Social Security Administration’s announcement comes on the heels of yet another higher-than-expected inflation reading, which reflected prices rising by 5.4 percent on an annualized basis. The average disabled beneficiary will see a $76 rise, bringing their monthly payment to $1,358. The average monthly Social Security payment to retirees will rise to $1,657, a $92 increase. More than 64 million recipients of Social Security will see their benefits increase starting in January due to the annual cost-of-living adjustment, with recipients of Supplemental Security Income seeing that increase kick in as of Dec.
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The Social Security Administration's announcement that 70 million beneficiaries are getting, in effect, a 5.9 percent raise next year comes as welcome news for seniors - but for many, that hike can’t come soon enough.