In a recent interview with the Illinois News Bureau, Professor Richard Kaplan spoke about the harmful effects of inflation on senior citizens’ pocketbooks.
"Social Security’s cost-of-living adjustment takes some of the sting out of inflation, but not all of it. This adjustment is based on the government’s widely followed Consumer Price Index, but the CPI does not replicate the basket of goods and services that older adults in particular purchase, especially regarding health care costs. Although most of the medical expenses related to COVID-19 have been funded by the federal government, older Americans remain on the hook for other health care costs such as doctor visits, medications and the like – none of which show any signs of moderating. Thus, the increase in Social Security benefits was certainly welcome news to the program’s recipients, but it did not fully offset the effects of inflation as those recipients generally experience it."
Read the full interview at news.illinois.edu.