Has your Social Security 2021 COLA of 1.3% been eaten up already?

Question

Since 2000, Social Security buying power has decreased by 30%. In my opinion, the Consumer Price Index for Urban Wage Earners is falsely kept below the actual rate of inflation. My lousy COLA of 1.3% (about five dollars) was totally eaten up today by Spectrum ISP raising the monthly fee $5. just for internet service alone. This leaves nothing for medical premiums (the wife's plan went up 100%), Food, Housing, Transportation, Prescriptions, etc. People have paid into the system all their working lives and now the IRS counts 85% of the benefit as taxable income. WTF? Social Security has evolved into a plan where the government pays itself through your account.

Update:

Wow! Lots of wool pulled over eyes here.

Update 2:

Sorry, no answers that make any sense. Since the year 2000, the buying power of Social Security had declined by 33 percent. No favorite answer award given.

StephenWeinstein · Answer

In 2000, most social security recipients didn't have Internet; when social security was created; there was no Internet.  It's not that you can't afford what you once could afford with social security; it's that you're spending money on more things, like Internet service, so you have less left for food.  (You are right about medical premiums being a problem, but most recipients are getting Medicare Part A without paying a premium, and pay only for Medicare Part B and a medigap plan, or have a Medicare Advantage plan.)

G · Answer

Energy prices and raw materials are down. Bulk agriculture and commodities are down. You’re just buying the wrong things, like medical insurance. Oh yeah that’s the law; I guess you are f’d.

STEVEN F · Answer

The cola is theoretically based on inflation. To the extent that is true, it is determined by how much has been eaten up when it is set.

Has your Social Security 2021 COLA of 1.3% been eaten up already?

3 Answers