Monday, February 6, 2023
Social Security cost-of-living adjustments have fallen short of inflation by $1,054 since the start of pandemic
New data used to measure government inflations shows that average Social Security benefits fell short of inflation for the past two years. The Social Security Administration uses a measurement called the Consumer Price Index for Urban Wage Earners and Clerical Workers, or CPI-W to calculate the cost of living adjustment each year.
The average benefits fell short by about $1,054 from the start of the pandemic through 2022. This excludes Medicare Part B premiums. This is going to be difficult for people to recover from and will largely depend on how much inflation comes down. This serves as a reminder for retirees to carefully plan their income streams and not rely solely on Social Security.
For more information see Lori Konish “Social Security cost-of-living adjustments have fallen short of inflation by $1,054 since the start of pandemic”, CNBC, January 12, 2023.
Special thanks to David S. Luber (Florida Probate Attorney) for bringing this article to my attention.