Description

From ssa.gov, “the Social Security and Supplemental Security Income (SSI) benefits for approximately 70 million Americans will increase 1.3% in 2021, the Social Security Administration (SSA) announced last week.”

Michael and Adam discuss how that is assessed, what it means for retirees, and how to maximize social security for the future.

Here’s the announcement.

A Step-by-Step of How Social Security's COLA Is Calculated

https://www.fool.com/retirement/2019/03/09/a-step-by-step-of-how-social-securitys-cola-is-cal.aspx

Here's the Average Social Security Benefit in 2021

https://www.fool.com/retirement/2020/10/25/heres-the-average-social-security-benefit-in-2021/

Other References:

2018 Loss of Buying Power Study Social Security Benefits Lose 34% Of Buying Power Since 2000

https://seniorsleague.org/assets/2018-Loss-of-Buying-Power-Report.pdf

Consumer Price Index

https://www.bls.gov/cpi/questions-and-answers.htm#:~:text=The%20Consumer%20Price%20Index%20for%20Urban%20Wage%20Earners%20and%20Clerical,at%20least%20one%20of%20the

Why Social Security’s annual increase doesn’t actually keep up with cost of living

https://www.pbs.org/newshour/economy/making-sense/why-social-securitys-annual-increase-doesnt-actually-keep-up-with-cost-of-living

Show notes

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