The 8.7% bump in cost of living allowance or COLA this year, a senior spending surge is seen compared to other generational groups in the country. However, it is helping to maintain the standard for the seniors living.
As per the institution of Bank Of America, for the week coming to an end on 18th February, the baby boomers and some other beneficiaries of the Social Security born before the year 1964 has increased their spending in the household between four to six percent year-over-year compared to the same for other ages.
Using this transaction data by the Bank of America, the institution has found a recent growth in spending in the households with seniors who are getting 2.1% higher Social Security since last year’s November.
In last year’s October, the SSA announced their will be seventy million of the American taxpayers who will taste the benefits of these Social Security. These seventy million people are going to get a increase in COLA from the beginning of 2023. This increased the average of retiree benefits under the Social Security up to one hundred and forty-six hundred dollars.
The Social Security Benefits And Increased COLA:
People who are collecting these Social Security benefits this year saw the annual increase to eighteen hundred and twenty-seven US dollars as per the CNBC reports.
With the increased spending spree of the customers, it ill impact the inflation infected economy of America. Critics have gone far to point out that it might hamper the inflation efforts made the the national government.
However, when the consumer prices were up the COLA and the Social Security were lagging behind. People close to their retirement saw some benefits that forced them to save up money and reduce expenditure of food and medicines.
