There is a definite increase in the cost of living in the United States. This is due to a number of factors, such as rising prices, healthcare and transportation. Luckily, there are some things you can do to help keep your wallet afloat. One of these is to ask for a cost of living raise. It's true that you might not be able to take advantage of such a large raise right away, but you might be able to get a little boost in the coming years.
A cost of living adjustment (COLA) is a benefit increase provided by the Social Security Administration. The benefit increase is designed to offset the rising price of necessities, including food and medical care.
The rate of inflation has reached all-time highs. For many Americans, it's a financial pinch that they'll have to live with for the next few years. While the rise in the rate of inflation hasn't hit levels seen in the 1980s, it's still very noticeable.
The current rate of inflation has been steadily rising since the beginning of the decade. That means that many people on fixed incomes are feeling the pinch. But it's not expected to slow down anytime soon.
As of last month, the Consumer Price Index was 8.2 percent. According to the SSA, this is the largest cost of living adjustment in more than 40 years. With the increase, the average Social Security payment will go up by $20 a month.
Those with Medicare should also see a decline in their standard Part B premium in the coming year. However, for those who rely on the program, they'll be getting a larger increase in 2023.
In order to offset the increase in the cost of living, the Social Security Administration has set the COLA for 2023 at 8.7%. This is the highest percentage of any cost of living adjustment in more than four decades. The increase will be applied to benefits for 65 million beneficiaries in January of 2023.
The Social Security Administration will announce the cost of living adjustment for 2023 on Thursday. Until then, you can prepare for the increase by ensuring you're able to cover the costs of your basic necessities. You can use a cost of living calculator to find out how much money you'll need to maintain your lifestyle. And if you need a little help, you can contact a nonprofit group, such as the Senior Citizens League.
Regardless of whether you're a retiree or working, the rising cost of living is something you'll have to deal with. If you move to a city with higher cost of living, it may be worth asking for a raise to help you make ends meet.
Many companies offer cost of living increases to their employees. This is part of a collective bargaining agreement that's often included in employee contracts. Sometimes, companies give their employees cost of living raises based on merit, while others only provide raises if the employer can afford it.