The largest Social Security cost-of-living adjustment (COLA) in four decades was given to pensioners in 2022. Benefits for Social Security pensioners increased by 5.9 percent, significantly more than the raises seniors had been entitled to previously. Although the COLA may have looked substantial at the time, an increase of about 8% is anticipated by 2023 according to the Social Security Administration’s senior actuary; that increase is 35.6 percent larger than what retirees saw in the previous year. This can appear to be a good thing—but it isn’t.
WE DON’T WANT TO BURST YOUR BUBBLE, BUT…
Despite the fact that it appears as though retirees will receive more money, the news is actually very bad. That’s because Social Security benefits are based on inflation, which develops organically over time.
The Federal Reserve has a target inflation rate of 2%, so prices will gradually rise. Most of those events have been occurring recently, which is why Social Security’s cost-of-living adjustments haven’t been very large. But inflation has been escalating recently, and seniors will get a significant increase in their Social Security checks next year as a result.
Although retirees will receive a cost-of-living adjustment next year, they are still in worse shape due to the enormous price increase. This increase is driven by sharp increases in the cost of groceries and electricity. Since Social Security replaces roughly 40% of pre-retirement income, most retirees rely on additional sources of money. The extra money they require usually comes from an investing account, but since retirees cannot wait for a market rebound, it is likely that they are not seeing 8.6% yearly returns on their investments.
As a result, retirees must withdraw more from their savings if they want to maintain the same purchasing power. This can accelerate the rate at which they exhaust their assets and run out of money. Their second choice would be to reduce spending by 8.6%, which won’t be easy at a time when the cost of basics are rising.
MAKE US A PART OF YOUR RETIREMENT PLAN
We know for sure that our economy will not improve soon. The coming years may even be worse than the ones we have been living through recently. It’s a scary, uncertain future for all of us, whether you are currently retired or still planning for your retirement. We are writing to you today to urge you to make a wise decision as soon as possible.
Investing in precious metals like gold can be a smart move for your future. The Gold Marketplace, LLC would love to provide you with this opportunity. Did you know that Gold will reach $2500 in 2022? Watch this video to learn more and grasp the reason why you should start buying gold NOW. Here are more reasons why you should invest in gold in 2022.
A product that we highly recommend is the 2022 Gold American Eagle 4 coin Set in Brilliant Uncirculated condition with a very low premium of 8.5%. Our easy-to-navigate website gives you other options like gold bars, coins, silver, and platinum.
We know that you’d love to learn more about our current economic situation and what precious metals can do for you. The Gold Marketplace, LLC provides you with the information that you need through our YouTube channel and our blogs.
Let’s work together to secure our futures. We are in this together, and we want you to know that we are here for you.
You are welcome to call or email us at (800) 960-6280. Monday through Friday, 9 to 7 Mountain time, and occasionally on Saturdays, we are in the office.
We look forward to working for you.