Now that we’re into June, many seniors are looking ahead to October, wondering if the cost of living adjustment (COLA) will be lower for 2021, notes Grumpy Editor.
As pointed out by MarketWatch’s Paul Brandus: “Here’s some bad news for the 63 million Americans — nearly one in five — who receive Social Security benefits now: It’s possible that there won’t be much of a cost of living adjustment, if any, for 2021. Why? Because one major component of the Consumer Price Index — and thus the COLA — is fuel prices (heating oil, gasoline and so forth). These prices have plunged, thanks to the coronavirus-induced economic collapse that we’ve seen over the last few months.”
The COLA for 2020, announced last October, was 1.6 percent.
Brandus points out millions of senior citizens are heavily dependent on Social Security.
He cites Social Security Administration statistics that show Americans aged 65 and over get one third of their income from Social Security, 50 percent of married couples and 70 percent of unmarried persons rely on Social Security for half or more of their income, and 21 percent of married couples and about 45 percent of unmarried people rely on Social Security for 90 percent or more of their income.
Meanwhile, says Brandus, food costs are rising faster than the overall inflation rate, health care costs continue to soar as well, while pharmaceutical firms rang in 2020 by hiking drug prices an average 5.8 percent.
IN CASE YOUR FAVORITE NEWS OUTLETS MISSED THESE…
G.E. QUITS BULB BUSINESS. General Electric is quitting the lightbulb business, with roots dating back to G.E.’s founding 130 years ago when Thomas Edison invented the first incandescent lamp.
GRAMMYS TO SALUTE UNSUNG HEROES. The Grammys, airing June 21 on CBS, with a “Salute to the Unsung Heroes” honoring America’s essential workers, will feature Oprah Winfrey, Brad Pitt, Herbie Hancock and Harry Connick, Jr.
PRINTING OF 100 AUSTRALIAN NEWSPAPERS TO CEASE. News Corp. says it will stop printing more than 100 Australian newspapers by the end of this month. In the move, triggered by the coronavirus pandemic, 36 will be closed outright while the others move solely to the Internet.
'DANGEROUS WILDCAT' SHAKES UP LONDON. Excitement in London with sightings of a “dangerous wildcat” — with markings like that of a cheetah or leopard — on the loose in a tony neighborhood, sends police, including Scotland Yard, into overdrive. Armed cops and helicopters are dispatched seeking the animal. Turns out it is an oversided cat, someone’s pet.
LAYOFFS AT CBS. CBS' entertainment and news divisions are going through a round of layoffs as part of restructuring following the merger with Viacom.
WOMAN CEO PAY TOPS AP SURVEY. Lisa Su, with chipmaker Advanced Micro Devices, is the first woman to top the Associated Press annual survey of CEO compensation at S&P 500 companies. Her 2019 pay package was valued at $58.5 million.
LARGEST OUTDOOR RODEO CANCELED. Cheyenne (Wyoming) Frontier Days is canceled because of the coronavirus pandemic, marking the first time the event billed as the world’s largest outdoor rodeo has been called off in its 124-year history.
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