Page 16 - Investment Advisor October 2022

RETIREMENT PLANNING

“This suggests that the pandemic
and inflation have caused significantly
higher numbers of adults living on fixed
incomes to turn to these programs to
supplement their Social Security and
Medicare benefits as prices have contin-
ued to climb,” she said.
“This group of older and disabled
Social Security recipients are at risk
of experiencing low-income assistance
benefit trims when the COLA boosts
their Social Security income … in 2023.
In 2022, when the COLA is 5.9%, some
14% of survey participants said their
low-income assistance was reduced
due to their COLA, and another 6%
reported losing access to one or more
programs altogether when the COLA
boosted their income over the limit,”
Johnson explained. A high COLA will be eagerly anticipated
The league surveyed more than
2,557 participants from May through to address an ongoing shortfall in benefits
July 2022. that Social Security beneficiaries are

WHEN WILL THE 2023 SOCIAL experiencing in 2022 as inflation runs
SECURITY COLA BE ANNOUNCED?
There are only two months of consumer higher than their 5.9% COLA.
price data left before the Social Security
Administration announces the COLA —Mary Johnson
for 2023. The Senior Citizens League
expects the SSA to announce it on Oct, After rising 7.5% in June, the energy apparel indexes were among those reg-
13, after the release of the September index fell 4.6% in July; the gasoline and istering declines.
consumer price index data. natural gas indexes declined while the For the 12 months ended in July, infla-
The Social Security Administration electricity index rose. tion on items excluding food and ener-
uses average inflation in the third The food index increased 1.1% in July gy increased 5.9%, the same increase
quarter, based on the CPI-W, to cal- after a 1% gain the previous month, the logged for the year ending in June.
culate the benefit adjustment for the seventh straight monthly rise of 0.9% The BLS stated that over the past 12
following year. or more. The food at home index rose months the energy index rose 32.9%, a
Medicare Part B premiums may not 1.3% in July, with all major grocery food smaller increase than the 41.6% rise for
grow very much next year, accord- group indexes climbing, led by nonal- the year ended in June. The food index
ing to Johnson, who doesn’t expect an coholic beverages, the bureau reported. gained 10.9% over the same period, the
announcement until mid-November. The index for all items excluding largest increase since the period ending
food and energy rose 0.3% in July, a May 1979.
JULY INFLATION NUMBERS smaller increase than seen in April, May The shelter index rose 0.5% in
The gasoline index fell 7.7% in July and June, the BLS reported. Indexes July, slightly less than the 0.6% in
after an 11.2% increase in June, offset- for shelter, medical care, motor vehicle June. For the last 12 months, the shel-
ting increases in the food and shelter insurance, new cars, recreation, and ter index increased 5.7%, contributing
indexes, which resulted in the all-prices household furnishings and operations about 40% to the overall increase in
index being unchanged for the month, increased over the month, while the air- all items excluding food and energy. Adobe Stock
the Bureau of Labor Statistics reported. fare, used vehicle, communication and —Dinah Wisenberg Brin

14 INVESTMENT ADVISOR OCTOBER 2022 | ThinkAdvisor.com