LANSING, Mich. (WLNS) Social Security’s cost of living adjustment for 2022 will be the biggest jump in decades.
It’s set to go up by 5.9% of a person’s monthly check.
But rising costs due to inflation could mean the extra cash from social security…. Might not go as far as you think.
“It’s no doubt inflation cuts into people’s money.”
Charles Ballard, an economics professor at MSU says inflation is the highest it’s been in almost 40 years.
But Ballard says we don’t need to panic yet
“We need to wait and see a little bit longer before hitting any kind of panic button that’s because much of this inflation is caused by supply chain disruptions that are a result of covid
Ballard says the social security cost-of-living adjustment goes up each year but this year broke a record.
“It’s been written into the law for almost 40 years… it may be a surprise for some people but it’s not like all of a sudden this is a policy change signed by Joe Biden or by Donald Trump or anybody recent, this was a policy change singed into law in 1983.”
He says inflation protection is a good thing and needed.
“Because of the cost of living adjustment, the increase in your benefit check offsets the increase in the cost of living that was designed in the 1970s to protect senior citizens from inflation.”
Ballard says he’s not too worried about inflation in the grand scheme of things and it should eventually slow down.