Are you ready for a big Social Security hike? Here’s when you’ll see those checks | personal financing

Unfortunately, next year’s massive benefits increase likely won’t do that, given that COLA tends to fall short of accurate accounting for the inflation experienced by many Social Security recipients. That’s because CPI-W does not accurately reflect the rate increases that are likely to severely affect seniors receiving retirement benefits. Older people spend differently than urban wage workers and book workers, and CPI-W often underestimates the effects of some major spending increases.

Social Security beneficiaries have been losing power for decades, with Decreased purchasing power of benefits. This trend is likely to continue into 2022 as rising food, housing, and healthcare costs will affect the value of COLA. So even though you’ll see bigger checks starting at the end of this year or the beginning of next, you’ll need to make smart financial decisions about how you use the money to avoid deteriorating your quality of life.

Careful budgeting for inflation costs will be important even when larger checks arrive. In some cases, this may mean replacing more expensive items with more readily available and less expensive items, or taking advantage of coupons and big discounts when they present an opportunity to save.

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