The gas pump and the grocery store are taking a much larger bite out of our collective wallets this year. At the start of 2021 the average gas price in the US was around $1.85 and currently the average has risen 59% higher in less than a year. The 70 million Americans that earned and receive Social Security (SS) benefits are affected most by this rapid inflation. Those currently working are receiving higher wages, but those already retired are dependent on the Social Security Administration to raise their SS checks enough to cover rising costs. The Social Security Act ties the annual Cost of Living Adjustment (COLA) to the increase in the Consumer Price Index [CPI] as determined by the Department of Labor’s Bureau of Labor Statistics. Based on the CPI the Social Security Administration will raise social security checks by 5.9% on the last day of December 2021. This is the biggest jump in inflation and social security payouts since the Jimmy Carter administration ended in 1981. This is a welcome increase for retirees, but many feel that the actual inflation rate may be much higher than 5.9%, especially when the average gas prices up 59% since 1/4/2021. The silver lining to all of this is that homeowners have also seen a rapid increase in their home values that may help to offset the increased costs of living.
If you would like to look into accessing your home equity to offset the rise in living costs, you may contact Robert Krepps firstname.lastname@example.org or toll-free at 877-567-7476.
Robert Krepps, NMLS #255191, at HighTechLending Inc. HighTechLending Inc, NMLS # 7147, is an Equal Housing Lender. Licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act.