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Leonel 23-02-21 13:56 view243 Comment0

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Advertiser disclosure You're our first priority. Every time. NerdWallet, Inc. is an independent publisher and comparison service and is not an investment adviser. Its interactive tools, articles as well as other content are available for free as self-help tools and for informational purposes only. They are not intended to provide investment advice. NerdWallet cannot and does not guarantee the accuracy or applicability of any information with respect to your individual circumstances. The examples are hypothetical and we encourage you to seek personalized advice from a qualified professional regarding specific investment issues. The estimates we provide are based on past market performance, and past performance is not a guarantee of future results. We believe that everyone should be able to make sound financial decisions without a doubt. Although our site does not feature every business or financial product that is available on the market, we're proud of the advice we offer as well as the advice we provide and the tools we develop are independent, objective easy to use and cost-free. How do we earn money? Our partners compensate us. This can influence the products we write about (and where those products appear on the site) However, it doesn't affect our recommendations or advice that are based on thousands of hours of study. Our partners cannot promise us favorable ratings of their goods or services. . Social Security Benefits Will Jump to a record 8.7 percent in 2023 Cara Smith Lead Writer | Investments, auto loans, cryptocurrency Cara Smith is a lead writer for NerdWallet, where she write about cryptocurrency, investing, and auto loans. She has reported on housing, commercial real estate and general business for Houston Business Journal, CoStar News and various other publications. She completed her studies in psychology and journalism in The University of Houston, where she was the editor-in chief of the university's student newspaper. She lives in Chicago where she hunts every day in search of the authentic Tex-Mex throughout the Midwest. Oct 13 2022, 2022 Edited by Laura McMullen, Assistant Assigning Editor news Laura McMullen assigns her editors to edit financial news articles. Her previous position was as a top writer for NerdWallet and covered saving, making and budgeting money; she also contributed to the "Millennial Money" column in The Associated Press. Before making the move to NerdWallet as of the year 2015 Laura worked for U.S. News & World Report in which she created and edited articles on health, careers and education as well as contributed to the company's ranking projects. Prior to joining U.S. News, Laura interned with Vice Media and studied journalism as well as history and Arabic in the Ohio University. Ohio University. Laura currently lives in Washington, D.C. Email:
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@lauraemcmullen

. A majority or all of the items featured here come from our partners who compensate us. This impacts the types of products we review and where and how the product is featured on a page. But this doesn't affect our assessments. Our opinions are entirely our own. Here is a listing of . The investing information provided on this page is for educational purposes only. NerdWallet does not provide advisory or brokerage services neither does it suggest or counsel investors to purchase or sell certain stocks or other securities. Similar to this, with the rising cost of the rising cost of fuel and inflation It's not a secret that your dollar isn't going as much as it did in the past. Today, the Social Security Administration released a report that demonstrates how much consumers have lost their purchasing power -- and how it's been done in record fashion. The SSA announced the cost-of-living adjustment for its year (COLA) is 8.7%. This is the highest cost-of-living rise in more than 40 years. For the majority of Social Security beneficiaries, this adjustment will result in an average of $140 or more per month starting in January according to an SSA press release. " are going down and benefits will increase in 2023. This will provide seniors with more security and more breathing space," Kilolo Kijakazi, acting commissioner of the Social Security Administration, said in the press release. What is COLAs and CPIs? The Social Security Administration uses annual COLAs to increase when necessary, the monthly payments of beneficiaries to match the actual prices of goods and services. In addition that, the administration has utilized COLAs since the 1970s in order to make sure that Social Security and Supplemental Security Income payments remain in line with . To understand COLAs, it helps to be aware of another acronym: CPI. The overall Consumer Price Index is calculated every month through the U.S. Bureau of Labor Statistics and measures the changes in the costs that consumers pay for services and goods like fuel, food and medical services. It is the Social Security Administration bases each cost-of-living adjustment on one specific index within the CPI umbrella - it is the Consumer Price Index for Urban Wage Earners and Clerical Workers. In simple terms, the index shows how prices could have increased and the COLA helps consumers compensate for the higher costs. The BLS released the latest CPI report in the early hours of this morning, before the announcement by the SSA. The CPI report indicates an 8.2 percent increase in price of consumer goods during the 12-month period ending September 2022. The past COLA figures compared with today's The last COLA, that was announced in December 2021 was 5.9%. The COLA that was announced today is 8.7 percent. Since the SSA began issuing COLAs in 1975, the largest adjustments were in the year 1980 (14.3%)) as well as in the year 1981 (11.2 percent). Since then, adjustments have remained in the single numbers. One of the other highest COLAs occurred in 2008 during the Great Recession. That year's COLA was 5.8 percent. How to weather the rising cost of living, whether you're an Social Security beneficiary or not the most recent COLA increase demonstrates how inflation impacts your the ability to spend a lot. Although there's no quick answer to inflation however, there are actions you can take to keep as much money as you can. As an example, you should prioritize higher-interest rates, like payday loans. And make sure you're aware of your spending, advises Travis Tracy, a certified financial planner and founder Of Fortitude Financial Planning in Durham, North Carolina. "It all boils down the cash flow" Tracy says. "That's what I work on with my clients: looking at the table and assessing how everything is going." Review your bank statements to see previous expenses or download a budgeting application that automates . If fuel is a significant expense, think about using an app for gas to locate the cheapest fuel within your region. Tracy also recommends clustering weekly errands on one or two days to help reduce the cost of fuel. If you're faced with the decision of what bills to pay for, make sure you're paying as little as feasible for the services you require. Get on the phone and call the businesses that are responsible for the bills you pay and respectfully ask to have your bills lowered or delayed. You can also call 211 or visit for assistance with regards to housing, food, health care and other necessities. Find out more news about money. NerdWallet reporters bring you the latest financial news and explain what it means for you. The author's bio: Cara Smith joined NerdWallet in 2021, after covering business and real estate in Houston as well as Chicago during eight years. In a similar vein... Find an even better broker. Check out NerdWallet's picks for the best brokers. Get even deeper into Social Security Get more smart money-related moves delivered right to your inbox. Sign up and we'll send you Nerdy articles about the topics in finance that are important to you along with other ways to help you get more out of your money.

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