Social Security Announces the Largest COLA Increase in 40 YearsThe Social Security Administration (SSA) recently announced the largest cost-of-living adjustment (COLA) in four decades. For Americans receiving Social Security benefits, the 5.9% increase, which is effective January 1, 2022, is expected to add $92 to the average monthly benefit, bringing that estimated amount to $1,657.1 While this is good news for retirees, it’s driven by the steep rise in inflation over the past 12 months, which reduces consumer buying power, especially for those living on fixed incomes in retirement. In September, the Consumer Price Index, a broad measure of inflation, rose 5.4% over the previous year, marking the largest annual gain since 2008.2 As a result, much of the Social Security COLA increase is expected to be absorbed by the rising cost of goods and services, along with the projected $10 rise in Medicare Part B premiums, from $148.50 in 2021, to $158.50 in 2022. For comparison, last year’s Part B increase was only $3.90 per month.3 For most retirees, Medicare Part B premiums are automatically deducted from their monthly Social Security benefit payments. 2022 marks the final incremental annual increase in FRA What if you’re still working and receiving benefits? If you have questions about optimizing your benefits, contact the office to schedule time to talk. 1 https://www.ssa.gov/news/press/factsheets/colafacts2022.pdf 4 Ways to Keep Online Spending in Check This Holiday SeasonDespite supply chain bottlenecks, inventory challenges, and rising prices, this holiday season is expected to break records for online shopping and spending. According to Adobe Analytics, online holiday sales are expected to hit $207 billion for the Nov. 1 to Dec. 31, 2021 period, a 10% increase over 2020.1 The ease and convenience of online shopping gradually pushed ecommerce adoption rates upward in recent years. However, the pandemic sealed the deal by exponentially driving adoption rates as ecommerce became an essential service. While 43% of Americans plan to do all or a part of their shopping at brick-and-mortar retail stores this year, 57% say most of their holiday shopping will take place online.2 However, one potential drawback to ecommerce sites it that they are available 24/7, which can lead to impulse purchases or spending more than you intended. While it can be easy to overspend when shopping online, consider the following tips to help keep your budget in check this holiday season:
If you have questions about ways to stay on track toward your important spending and savings goals, contact the office to schedule time to talk. 1 https://blog.adobe.com/en/publish/2021/10/20/adobe-forecasts-record-billion-holiday-season-online-us-billion-globally.html#gs.ebjzvm This information was written by KRW Creative Concepts, a non-affiliate of the broker-dealer. |

Retire Wise | November 2021
November 09, 2021
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