Seniors on Social Security May Get Less Than $20 More a Month in 2021
Earlier this year, it seemed as though seniors on Social Security would have no shot at getting a cost-of-living adjustment, or COLA, for 2021. COLAs are based on third-quarter data from the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which measures changes in the cost of common goods and services.
When gas prices dropped drastically back in March and April, analysts were quick to predict that the CPI-W wouldn't move enough to allow for a 2021 COLA. But things changed over the summer, and the Senior Citizens League, a well-known advocacy group, is now projecting that Social Security beneficiaries will be in line for a 1.3% raise next year.
Of course, a 1.3% raise is better than nothing -- but it's hardly generous. In fact, if that number sticks, the average senior on Social Security will get less than $20 more on a monthly basis. And that's hardly cause for celebration.
Source Fool.com
