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Super-Sized COLA? Social Security Likely to Deliver a Big Benefit Boost in 2023

Super-Sized COLA? Social Security Likely to Deliver a Big Benefit Boost in 2023

| September 06, 2022
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After a year that has been saturated with worrisome economic news, here is a sign that better days may be ahead for America’s retirees. The Senior Citizens League, a nonpartisan older adults group, now estimates Social Security benefits may increase 9.6%, based on recent Consumer Price Index data. 

If the estimated increase happens, it will be the largest annual Cost of Living Adjustment (COLA) for Social Security recipients since a 14.3% increase for 1981. That’s 42 years! 

Source: Social Security Administration 

In addition to this positive prognosis, more good news is that bread and butter costs that have been burning holes in our pockets are showing signs of getting under control. 

For example, gasoline prices have come down substantially and continue to deliver savings. From June 14, there were 70 straight days of falling gas prices. That was the second longest on record back to 2005. 

Source: AAA 

In combination with falling prices for various key expenses, a larger Social Security check could provide investment opportunities for retirees. Even slightly increasing your savings deposits can pay off in the long run. 

Here are three investment options that can generate real returns during exceptionally high inflation: 

1. Equities

Equities generally offer a reliable shelter from the storm in tough economic times because the stock market’s general output exceeds inflation. Areas of resurgence include categories with lots of buzz like hospitality and leisure.

2. Real Estate

The rise in interest rates makes credit more expensive, which makes real estate less expensive, in time. Residential real estate is a haven for lots of inflation savvy investors who will be looking for deals in the next 18 to 24 months. Also look to buy stock in Real Estate Investment Trusts (REITS), public companies that own property or offer credit, as an alternative to buying property.

3. Savings Bonds

Another vehicle to consider as a tool to diversify your portfolio is savings bonds, which don’t go down in value. These are reliable, dependable hedges against volatility that will provide peace of mind as the market continues to improve.

These are just a few suggestions. There are many ways to ensure your investment strategies best meet your retirement income needs. 

I am here to help. Please reach out to schedule a one-on-one consultation with me to discuss your specific goals and needs.
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Related Resources:

Treece Talk Webinar: Savvy Social Security Planning

Social Security Planning Resources

Medicare Changes Retirees Need to Know About

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Photo by Ashley Kirk on Unsplash

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