Well this could be good news.
The folks over at the fool.com are giving us reasons to think that the Social Security Cost of Living Adjustment for 2019 could be the largest since 2012.
Given what I posted two days ago on how inflation is destroying Social Security beneficiaries purchasing power, a 3% or more COLA is long coming.
We’ll see if it comes to fruition. But, as the fool points out, it looks pretty set.
The problem with Social Security adjustments is that it’s based on the CPI-W which is more an analysis of cost increases for working people, not retirees. So, things a retiree may be affected by may be counted less in the CPI numbers than what affects a worker.
Energy, for instance, represents less than 5% of the CPI-W. Does the average retiree have a larger energy expense? How about health care? etc.
Until the COLA adjustment is made more geared towards retirees there is nothing we can do other than be happy when a larger COLA comes down the pike, like seems will happen next year. We shall see.