STUART, Fla. — The Social Security cost of living adjustment will increase to highest level in 40 years. This, after new numbers out Thursday showed prices for food and rent continue to rise.
The increases are sending out shock waves to those in retirement who are already living on fixed incomes.
It’s not just price increases at the grocery store or medications. For those retirees living on a fixed income, every aspect of their retirement plan is getting blown up.
From the grocery store to the housing market and gas prices, Mary Walsh is shocked at what she’s paying to live.
"Things that I could do before, I could have a trainer, I can’t afford that anymore," Walsh said.
Walsh owns a condo in Palm Beach County and splits her retirement time between here and New York.
"We’ve actually seen a lot of retirees go and pick up a job, get back to work, which is unfortunate," said Charles Czajka with Macro Money Concepts in Stuart.
Czajka said Social Security’s cost of living adjustment at the beginning of the year was wiped out by increases in Medicare costs. Now, the Social Security Administration announced the cost of living adjustment for 2023 will be 8.7%, or on average about $140 more a month.
"When you draw down your retirement account to pay for all these increases, that money goes fast," Czajka said.
September inflation numbers show food is up 13% compared to last year, and rent is up more than 7%.
Gas prices dropped in September, but they're starting rise and are still 19% higher than last year.