Social Security beneficiaries already felt the effects of inflation since Covid-19 started. It continued until 2022 when inflation soared and adjustments fell short to nearly half.
Retirees on Social Security have been feeling the effects of inflation since the start of the COVID-19 pandemic. (Photo: Marca)
Social Security Falls Short of Actual Costs
The Senior Citizen’s League reported that inflation-based COLA for benefits always fell short due to pandemic-era inflation. The 2022 COLA fell short of covering the added costs of inflation by an average of 46 percent per month.
According to a published post by The Epoch Times, TSCL found that Social Security recipients fell about $53 with the COLA adjustments in 2020 and about $612 with the COLA adjustments in 2021.
Retirees on Social Security have been feeling the effects of inflation since the start of the COVID-19 pandemic. (Photo: Flex Jobs)
Can Seniors Catch Up to Inflation?
With the trend of inflation-related shortfalls, TSCL questioned if seniors on social security will be able to catch up. Social Security recipients can catch up with inflation if prices go down significantly. This year’s COLA for Social Security is set at 8.7 percent. TSCL stated that it would be a record high for beneficiaries to receive a COLA this high.
The organization warned that it’s too early to say how well the 8.7% COLA will keep pace with inflation in 2023. A report by the U.S. Bureau of Labor Statistics stated that inflation slowed to about 6.5 percent in December, from 7.1 percent in November.
TSCL also pointed to a drop in Medicare Part B premiums in October. This will make the standard Part B premium in 2023 will be $164.90, or a decrease of $5.20 per month, from $170.10 in 2022. These changes in Medicare premiums, along with the 8.7 percent COLA for Social Security, could help senior citizens catch back up financially.
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