Phew: Social Security To Boost Payments To Cover Inflation

  • The Social Security Administration will increase benefit payments this week to respond to rising inflation, analysts say.
  • The agency is expected to announce the scheduled benefits increase Thursday, and the Senior Citizens League has predicted that increase will be 8.7%, one of the largest hikes ever.
  • “Across the board, retired and disabled Social Security recipients spend a bigger portion of their incomes on healthcare costs, housing, and food and less on gasoline,” said Mary Johnson, Social Security and Medicare policy analyst for the Senior Citizens League. “Over the past 12 months, they rank food costs as their fastest growing expenditure, housing, and transportation in that order. Wall Street, however, clearly believes that the August numbers indicate that inflation is still with us, and higher than hoped. We agree. In fact, according to the Bureau of Labor Statistics August press release, ‘increases in shelter, food and medical care were the largest of many contributors’ to the August increase.