Over the last 12 months, the all-items index is up 5.4% before seasonal adjustment. In addition, the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W)-which is used for the Social Security COLA-increased 6% over the last 12 months. 11 by the Bureau of Labor Statistics.Īccording to the BLS’s data, the Consumer Price Index for All Urban Consumers (CPI-U) increased 0.5% in July on a seasonally adjusted basis after rising 0.9% in June. The new, updated estimates from The Senior Citizens League (TSCL) show that the annual COLA could be 6.2% next year, based on July Consumer Price Index (CPI) data released Aug. But without the 8% raise, I know I’d be worse off.Based on new data for July, it’s starting to look like next year’s annual Social Security cost-of-living adjustment may be the highest in nearly four decades. It may even leave me worse off than I am now. As such, I look at the 8% increase in SSA benefits as a windfall. When you put together your budget, decide which items are necessary FOR YOU and which you can live without or reduce. non-discretionary) whereas for others, the amount spent on food, clothing, or entertainment - clearly a personal choice - would be another non-discretionary expense. For some, a gym membership might actually be a high priority necessity (i.e. Note that some of these are fixed amounts and some variable, like gas and utilities which will go up and down during the year but are certainly not discretionary. Same can be said for things like taxes, insurance, loan payments, utilities, and automobile or transportation expenses, including gas. Rent or mortgage payments would, of course, be put into the non-discretionary category. Yes, that’s a handy way to look at it.īut for most people I tend to favor a more nuanced approach: I prefer to divide my expenses into two categories, Discretionary and Non-Discretionary. Most budgets, of course, have you divide your expenses into two categories: fixed and variable. In my book, AARP Roadmap for the Rest of Your Life, I spend a good number of pages on creating a budget. The bottom line appears to be that this might be a good time to put together an estimated budget for the coming year. In my area, Palm Beach County, Florida, and in many similar locales, some rents are increasing 30 or 40%! Your 8% raise in SSA benefits could be dwarfed by a rent increase. If you’re a renter, you might also consider just how much your rent might increase. If you’re driving as much as you have been, you’re already feeling the pinch. Gas prices are now over $5 nationally, and higher in many places. So before you go out and spend that 8% Social Security raise, you’d be wise to wait to find out just how much you take in from it, after higher Medicare premiums are deducted.Īs for inflation, it’s obvious that it’s taking a toll. Healthcare costs certainly have not leveled off. There’s no word yet about how much the Medicare Part B payment will rise for 2023, but you can bet it will match or better last year’s increase. Also, for higher income folks, the premium was much, much higher, going up to as much as $578 per month. Although the SSA benefit went up, $21 of the $132 increase was lost to the Medicare payment. How much inflation will actually affect our ability to buy what we need and want.įor 2022, the payments for Medicare Part B went up a whopping 14.5%, up to $170.10 (from $148.50 the year before).How much the Medicare Part B premium increases, and.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |