The 2022 COLA has been announced, giving Social Security beneficiaries a 5.9% increase on their monthly payments. This increase is expected to provide an additional $76 each month, on average.
However, according to Fox Business, this will not be enough to combat the inflating prices. Specifically, five price increases are expected to be more severe. These increases will hurt any senior citizen who relies more heavily on their Social Security payments in 2022. These include the prices of food, housing, heating, and prescriptions.
Rate of Inflation 2021 And 2022 Predictions
Over the course of 2021, each of these categories has seen prices rise more than 5%; unfortunately, this increase is not expected to stop.
The article states that in 2022:
- food prices will increase anywhere from 1.5% to 2.5%
- rent for senior housing should increase by at least 7%
- heating costs could rise 21% to 25%
- prescriptions may cost up to 5% more
The Bottom Line
Unfortunately, with all these expectations, senior citizens should not assume the large COLA expected for 2022 will be enough. In fact, the expected increases to healthcare costs alone may consume the 5.9% increase anticipated– a possibility that would cause a lot more financial insecurity with seniors relying on their monthly benefits.
We Are Here To Help
Looking at the numbers, there are many problems with Social Security. However, one of the most harmful is the decrease in spending power senior citizens have seen over the past two decades. This drastic decrease impacts the daily life of senior citizens and is one reason why we must demand change.
Senior Security Alliance recognizes the impact inflation, a “silent killer,” has on senior citizens. That is why we are urging you to help us create the change seniors deserve; help us urge the politicians in Washington to pass our groundbreaking bill and help seniors achieve more financial security.
