If COVID-19 Isn't Better Contained, It Could Kill Seniors' Chance of a Social Security Raise in 2021
Earlier in the year, when things looked pretty bleak on the COVID-19 front, President Trump hoped the spread of the virus would wane during the summer months, which is what typically happens with the flu and other viruses that are more rampant during the winter. But clearly, that hasn't happened. In fact, it's fair to say that the COVID-19 outbreak has only gotten worse during the summer, and while some states are tightening restrictions in an effort to slow its spread, we're nowhere close to the lockdown conditions much of the public endured earlier on in the year.
Throw in the fact that in-person learning is about to kick off in schools throughout the country, and there's certainly reason to worry that the COVID-19 outbreak is heading for a dangerous trajectory. And while that certainly spells trouble from a public health perspective, it's also problematic for seniors on Social Security.
Each year, Social Security benefits are eligible for a cost-of-living adjustment (COLA), the purpose of which is to enable seniors to retain their buying power as inflation makes life more expensive. But COLAs are not guaranteed. In the recent past, we've had several years without a COLA. And if the COVID-19 outbreak continues to spread, seniors might not see a COLA for 2021.
Source Fool.com
