Although millions of retirees are looking forward to the Social Security Retirement Income cost of living adjustment (COLA), there’s actually another question that’s equally if not more important. Estimates of next year’s COLA are runnng around 8% due to the high rate of inflation.
Here’s the other question. What impact will the COLA have on the Social Security Trust Fund? For that we’ll need to wait until the trustee’s report comes out which, judging by the last few years, may be anywhere from May to July. I’m betting that the COLA shaves a whole year off the date at which the trust fund is expected to be unable to pay full SSRI.
If you think things are miserable now, wait until that one hits.
The last trustees’ report predicted 2034.
I don’t look forward to a COLA adjustment because I know that the actual cost of living will outpace it.
I also don’t see SS running out of money because congress will act.
Although everyone will be dissatisfied with the results.
A lower standard of living.
So…..Eat Drink and be Merry,
Meh. SS has been “fixed” multiple times. Just raise the tax. Funny thing, just increasing the money stream can fix any ill-conceived and structurally unsound financial scheme.
PS – next up. Means testing. Demonizing the rich. A total bait and switch.