How Rising Gas Prices Could Affect Social Security
Gas prices have jumped about 20 percent in recent months. According to a Newsweek article, this type of inflation can make a “substantial difference” in Social Security payments.
That’s because gas prices are a major driver of inflation, and inflation determines the annual Social Security cost-of-living adjustment (COLA). Analysts believe next year’s COLA could be over 3 percent, largely because of gas prices. And higher gas prices mean higher prices for food, goods, services, and utilities, too.
The article points out that while Social Security benefit checks might be higher next year because of gas prices, a bigger COLA is not necessarily good news. It “often reflects rising living costs, not increased financial security.”
The Seniors Trust is committed to improving the financial well-being of older Americans by passing the Social Security Expansion Act. It will give retirees an immediate increase of about $200 a month in benefits, a fair annual COLA, increased minimum benefits, and ensure the long-term solvency of the Social Security program.
