Yesterday, I went into our local supermarket to pick up a few items and I became instantly “sticker shocked”. It seemed like it was hard to find any item for less than five dollars. My money didn’t seem like it was buying nearly as much as it had in the past.
That unfortunately is true.
Our COLA ( cost of living adjustment) issued annually was adjusted to 1.35% this year. But recent government data showed the cost of living actually rose 2.3% faster than previously forecasted. Higher prices for gas, rent, healthcare (and groceries) mean we will fall nearly 1% behind inflation this year. Regarding healthcare, greedy big pharma hiked drug prices nearly 6%! Now the fact our COLA is lagging may not seem too important until you realize that 21% of married couples and 45% of singles rely on the program for more than 90% of their income. More Americans are falling into poverty and having trouble just getting food on the table every day. Add to that high unemployment and our COLA is not only flat, but too many citizens are being crushed by the burden.
- Lou Reinitz LJR Insurance Solutions