{"id":91602,"date":"2020-10-17T19:52:30","date_gmt":"2020-10-17T16:52:30","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/opinion-this-is-how-much-your-social-security-will-rise-in-2021\/"},"modified":"2020-10-17T19:52:30","modified_gmt":"2020-10-17T16:52:30","slug":"opinion-this-is-how-much-your-social-security-will-rise-in-2021","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/opinion-this-is-how-much-your-social-security-will-rise-in-2021\/","title":{"rendered":"#\n  Opinion: This is how much your Social Security will rise in 2021"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a5026548877d\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a5026548877d\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/opinion-this-is-how-much-your-social-security-will-rise-in-2021\/#The_cumulative_effect_of_low_COLA_increases_can_be_%E2%80%98deeply_damaging\" >The cumulative effect of low COLA increases can be \u2018deeply damaging\u2019<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/opinion-this-is-how-much-your-social-security-will-rise-in-2021\/#Paul_Brandus\" >Paul Brandus<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#<br \/>\n  Opinion: This is how much your <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Social<\/a> Security will rise in 2021<br \/>\n<\/strong>&#8221;<\/p>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"The_cumulative_effect_of_low_COLA_increases_can_be_%E2%80%98deeply_damaging\"><\/span>\n  The cumulative effect of low COLA increases can be \u2018deeply damaging\u2019<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"10AF0CC0-0D6A-11EB-B9E4-09867C275203\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       Social Security recipients will get a cost-of-living increase of 1.3% in 2021, trustees for the gargantuan federal program said Tuesday. <\/p>\n<p> For the 64 million Americans who get Social Security, this would lift the average monthly benefit\u2014which is $1,503 this year\u2014to $1,522. Disabled workers and their dependents will get the sane 1.3% increase, raising their average monthly benefit to $1,274.<\/p>\n<div class=\"paywall\">\n<div data-layout=\"\n              \" data-layout-mobile=\"\" class=\"\n        media-object\n        type-InsetMediaVideo\n            \n            \n  article__inset\n        article__inset--type-InsetMediaVideo\n            article__inset--\n  \"><\/p>\n<figure class=\"media-object-video article__inset__video media-object-video--standard\">\n<div class=\"wsj-media-summary clearfix\">\n<div class=\"strap-container\">\n<h4 class=\"strap\" itemprop=\"description\">\n<\/h4><\/div>\n<\/p><\/div>\n<div class=\"video-container article__inset__video__player\" id=\"http:\/\/www.marketwatch.com\/news\/61AD778B-C50D-4EC0-A82F-2942D613BC47\" data-src=\"http:\/\/www.marketwatch.com\/news\/61AD778B-C50D-4EC0-A82F-2942D613BC47\" data-format=\"standard\" data-esplash=\"\" data-msplash=\"\" data-suppressheadline=\"\" data-verticalstill=\"\">\n  <\/div><figcaption class=\"wsj-article-caption article__inset__video__caption\">\n          80% of older Americans can&#8217;t afford to retire &#8211; COVID-19 isn&#8217;t helping<br \/>\n        <\/figcaption><\/figure>\n<\/div>\n<p>       What\u2019s interesting is that while <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a> of the 1.3% cost-of-living adjustment (COLA) was released by the Social Security Administration (SSA), another federal agency\u2014the Labor Department\u2014released its own data Tuesday showing that inflation rose a bit more than that\u20141.4%\u2014for the 12-month period ended in August. <\/p>\n<p>What this means is that the COLA seniors are getting will trail the prevailing inflation rate by one-tenth of 1%. This might not sound like much, but Mary Johnson, Social Security and Medicare policy analyst for the Virginia-based Senior Citizens League, says low cost-of-living increases like this have been the norm for years now\u2014and the cumulative effect has been deeply damaging. <\/p>\n<p>\u201cWe calculate that Social Security recipients have lost about 20% of their buying power since 2009,\u201d Johnson says, because while overall inflation has been low\u2014and that\u2019s what the annual COLA is pegged to\u2014the price of some things has soared.<\/p>\n<p>Read: Social insurance is the best way to save \u2014 now more than ever<\/p>\n<p>Similar criticism was leveled by another group, the Washington-based group, the National Active and Retired Federal Employees (NARFE). <\/p>\n<p>\u201cThis insufficient COLA fails to keep up with inflation experienced by seniors, further eroding their purchasing power,\u201d said NARFE President Ken Thomas. <\/p>\n<p>What has h<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ened this year alone supports the view of both groups. One major component of the Consumer Price Index is fuel prices (heating oil, gasoline and so forth). Thanks to the coronavirus-induced economic collapse, fuel prices plunged earlier this year and really haven\u2019t recovered. This has helped keep inflation\u2014and thus the COLA\u2014low.<\/p>\n<p>Read: Deaths of despair: Not everyone benefits from the \u2018longevity economy\u2019<\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p>At the same time, the price of some things has soared. As the economy was crashing earlier this year, the production and distribution of food was severely impacted. Remember just six months ago? The price of meat, poultry, fish, vegetables and baked goods all jumped, pushing grocery bills <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/www.washingtonpost.com\/business\/2020\/05\/12\/april-saw-sharpest-increase-grocery-store-prices-nearly-50-years\/\" class=\"icon none\">higher by the most in nearly 50 years<\/a>. <\/p>\n<p>Falling energy prices may not mean as much to seniors who don\u2019t drive as much as they used to, and who may live in warm-weather states where heating oil isn\u2019t a critical issue. But soaring food prices? That\u2019s another matter entirely. <\/p>\n<p>Thus some items that comprise the cost of living index are more relevant than others to seniors\u2014yet their COLAs reflect the prices of all components in the index. <\/p>\n<p>Johnson points out another flaw with how Social Security COLAs are calculated. Trustees look at a gauge called the \u201cCPI-W\u201d\u2014the Consumer Price Index for Urban Wage Earners and Clerical Workers\u2014which measures prices paid by working adults under the age of 62 (before the minimum Social Security eligibility age). CPI-W places greater weight on things that seniors need less of\u2014like electronics and, again, gasoline\u2014but less weight on things seniors do spend big on, like medical expenses.<\/p>\n<p>How on earth could the Social Security trustees de-emphasize medical expenses? It\u2019s only mid-October, but the cost of 42 key medicines has already gone up an average 3.3% this year, according to GoodRx, which tracks such things. Also burning a hole in the pockets of millions of seniors is premiums and deductibles for Medicare Part B, which helps cover things like doctor\u2019s services, outpatient services and other medical supplies. <\/p>\n<p>The cost of both Medicare premiums and deductibles are up about 7% this year, Johnson says, and will increase again in 2021, though recent legislation passed by Congress and signed by President Trump could limit that increase. <\/p>\n<p>Even so, \u201cthese low cost-of living increases seniors are getting are not keeping up with their true cost of living,\u201d Johnson charges. <\/p>\n<p>NARFE\u2019s Thomas says what Congress should do is stop pegging Social Security cost-of-living increases to workers under the age of 62, and pass legislation pegging it to what seniors actually spend money on. <\/p>\n<p>Such legislation \u2014 the so-called \u201cFair COLAs for Seniors Act\u201d \u2014 has been introduced in the House. But Thomas notes that none of four committees with jurisdiction over it has acted. <\/p>\n<div data-layout=\"\n              inline\" data-layout-mobile=\"\" class=\"\n        media-object\n        type-InsetCommentingPromo\n            \n            inline\n  article__inset\n        article__inset--type-InsetCommentingPromo\n            article__inset--inline\n  \"><\/p><\/div>\n<\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>      <span>By<\/span><\/p>\n<div class=\"author  hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Paul Brandus\",\"subhead\":\"The Wall Street Journal\",\"list\":[]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Paul_Brandus\"><\/span>Paul Brandus<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<\/div>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener noreferrer\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B10AF0CC0-0D6A-11EB-B9E4-09867C275203%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener noreferrer\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Opinion: This is how much your Social Security will rise in 2021 &#8221; The cumulative effect of low COLA increases can be \u2018deeply damaging\u2019 Social Security recipients will get a cost-of-living increase of 1.3% in 2021, trustees for the gargantuan federal program said Tuesday. For the 64 million Americans who get Social Security, this&#8230;<\/p>\n","protected":false},"author":1,"featured_media":91603,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-91602","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/91602","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=91602"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/91602\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/91603"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=91602"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=91602"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=91602"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}