Why your Social Security could feel like a lot less next year

Interesting. We know that social security gets a cost of living boost each year. We also know that inflation has caused the price of most commodities to go up. So why won't COLA increase in 2021?

Falling energy prices. So those that rely on SS to meet monthly bills are going to take a big hit.

Ugh. Seen the price of eggs lately? Up 16.1% in April, according to the Department of Labor’s monthly Consumer Price Index (CPI). And that’s not all. Meat, poultry, fish, baked goods, beverages, dairy are up. Fruits and vegetables too. They all went up last month, pushing grocery prices higher by—get this—the most in nearly 50 years. 50 years! That’s pain. And unless you’re loaded, choices have to be made. Especially if you’re heavily dependent on a fixed income stream like Social Security—like millions of senior citizens are.
What do I mean by heavily dependent? According to the Social Security Administration (SSA), Americans aged 65 and over:

  • Get 33% of all income from Social Security
  • 50% of married couples and 70% of unmarried persons rely on Social Security for 50% or more of their income from Social Security
  • 21% of married couples and about 45% of unmarried persons rely on Social Security for 90% or more of their income
I fall into a forth category when I can start collecting: SS payments will fund business class trips to Europe for vaca.