Social Security Cost of Living Adjustment
HUGE news was announced today, and it’s going to affect you. Today, we learned that the Social Security cost of living adjustment (COLA) is going up only .3%. That’s just $3 for every $1000 that you get. For most people, that’s a meager $5 per month.
What does this mean for you? Simply put, you cannot rely on Social Security increases. The announcement about the Social Security cost of living adjustment proves the extreme importance of actively managing your retirement. Social Security benefits are quite modest. The average retiree will get a tiny $5 raise in 2017. Additionally, inflation can take a painful bite out of recipients’ purchasing power. This is on the heels of NO COLA increase in 2016!
For many, this raise is nowhere near enough. It could force millions of Americans to accept a lower standard of living. Many of these people rely solely on Social Security for their incomes! It infinitely increases the risks they take with their investments. Many of them now have to find other sources of income – even going back to work. So what does this mean for you?
If you’ve been depending on Social Security to keep you afloat, or to pay your bills, it’s time to look into other options. While it would be convenient if we could rely on Social Security, unfortunately that’s no longer practical. Do we really believe that our daily expenses i.e. utilities, taxes, groceries, prescription medications and gas are only going to increase by a meager five dollars a month next year?
That’s why it’s important, now more than ever, to have a much stronger plan A – one that doesn’t depend on those increases from Social Security. It’s important to have a retirement plan, and then to actively manage it according to the times, according to adjustments, and according to current events.