A new year will start in a few weeks and the media is now talking about the increases in social security for seniors.
The 2021 increase was 1.3 percent. For 2022, the social security benefit for seniors will increase by 5.9 percent. That is the largest increase in well over 20 years.
At first glance that amount looks great if you are a senior on social security. If you get $1,500 in 2021, you will get that 5.9 percent increase of $88.50. In 2022, you will get $1,580.50 per month. Most people have only looked at that number and said life will be better for me next year. Unfortunately nothing could be further from the truth. Mr. or Mrs. Senior you are actually going to go in the hole.
The Bureau of Statistics report for October 2021 put the annual consumer price index at 6.2 percent. That is a .3 percent loss on your 5.9 percent increase. Your check in real dollars will be less next year. But it is still worse. The consumer price index is an average of all consumer products across the board. It does not necessarily reflect a certain segment of society. Seniors have higher medical costs and their fixed costs are less likely to be able to be reduced.
• See the complete column in the Friday, Nov. 19, print edition of the Clinton Journal or now in the Journal E-Edition.