All the talk of inflation in the news is making some folks nervous about the prospect of future prices for goods and services. For several reasons we don’t think it’s worth too much worry.
1) The federal government has many stop-gaps in place to combat runaway inflation (they’ve learned from the past).
2) Historically, stock prices tend to increase with inflation (meaning equity investments tend to keep up with or surpass inflation rates).
3) Just like many employers provide raises connected to the cost of living, Social Security provides inflationary increases each year for retirees.
While we won’t know the exact increase until Social Security makes their official announcement in October, the non-partisan advocacy group The Senior Citizens League estimates the increase to be as much as 6.1%. That would be the highest cost of living increase for Social Security since 1983! Considering the 2021 increase was a modest 1.3 percent, the 2022 increase is sure to bring some good news to retirees.
As always, if you have any questions or concerns please don’t hesitate to reach out!
