Local gas prices affecting East Texans’ Social Security benefits

Millions of people can expect no increase in Social Security benefits next year and they can blame gas prices. It’s all linked to something called COLA or the annual cost-of-living adjustment. Economists say this year, prices have actually dropped and a main reason is lower gas prices.

Congress tied Social Security increases to inflation in 1975… since then benefits have ticked up about four % a year on average.

However, when that doesn’t happen, a long-standing federal “hold harmless” law protects the majority of beneficiaries from having their Social Security payments reduced. It’s estimated those on “Medicare Part B” will see premiums jump by about $54 a month.

That doesn’t work in favor of fixed government income beneficiaries who know that costs for health care, housing and other expenses have been chewing bigger chunks from their checks.

That’s unwelcome news for more than one-fifth of the USA population.

“We deserve it”, said Bruce Fritzinger. It measures price changes for food, housing, clothing, transportation, energy, medical care, recreation and education. Consumer prices for July and August fell compared with a year ago.

The numbers for July and August show that, overall, consumer prices have fallen since past year.

The news has many calling for a new government measure of inflation for older Americans. They’ve been retired for about 20 years, and Social Security is also a big part of their income.