Social Security, financial portfolios hit hard by ongoing inflation
CAPE GIRARDEAU, Mo. (KBSI) – For many Americans, inflation has created a financial hardship.
Milk, gas, and even bread prices have continually increased.
According to the United States Congress Joint Economic Committee, inflation in Missouri has increased by 0.6% and gas by $0.18 per gallon since last month. Inflation continues its ascent, and there doesn’t appear to be a light at the end of the proverbial tunnel.
But as these prices increase, savings accounts, various financial portfolios, and SocialSsecurity are decreasing in value.
“2022’s been interesting,” says Allen Bowling of Northwestern Mutual. “This year, inflation has kind of done the opposite of what[the] economy is doing and it’s skyrocketed, especially this summer. With the recent rates at around 9 percent through the summer, it’s really impacted people’s day-to-day savings. It’s impacting the type of planning that we do.”
According to the Cost-of-Living Adjustment (COLA), Social Security will increase by 8.7% in 2023.
More than 70 million Americans will be affected by this. While the news should be a bit of fresh air from an economics standpoint, the message is resonating on the opposite end of the spectrum.
As news broke of the uptick, some are skeptical, saying the increase is not enough.
“Yeah, I totally agree that. I don’t think it’s going to completely make up for what people in retirement have been seeing this past year,” added Bowling.
Bowling explains the best plan-of-action would be to connect with your local financial advisor for any questions or concerns.
For more information about Social Security, visit COLA’s website: https://www.ssa.gov/cola/.