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Here’s How Inflation Will Affect Your Social Security Benefits Next Year
Manage episode 299181674 series 1212530
Recently, while answering some listener questions about early retirement, I pointed out that every piece of your financial plan is connected to every other piece. Adjust one lever, and you might trigger some unexpected consequences if you're not working with a professional who can help you anticipate and prepare for further changes.
We're certainly seeing those same kinds of interconnected effects with concerns about inflation. Even as our economy continues to accelerate out of the pandemic, massive government stimulus combined with ongoing supply chain disruptions and low labor participation have driven up the consumer price index (CPI) this summer. That's affecting how many seniors are thinking about their household spending and retirement timelines. But, as we discuss on today's show, inflation is also affecting how the government is looking at Social Security.
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Manage episode 299181674 series 1212530
Recently, while answering some listener questions about early retirement, I pointed out that every piece of your financial plan is connected to every other piece. Adjust one lever, and you might trigger some unexpected consequences if you're not working with a professional who can help you anticipate and prepare for further changes.
We're certainly seeing those same kinds of interconnected effects with concerns about inflation. Even as our economy continues to accelerate out of the pandemic, massive government stimulus combined with ongoing supply chain disruptions and low labor participation have driven up the consumer price index (CPI) this summer. That's affecting how many seniors are thinking about their household spending and retirement timelines. But, as we discuss on today's show, inflation is also affecting how the government is looking at Social Security.
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