Coronavirus outbreak has badly affected the US economy and has affected millions of people. It has been reported that more than 36 million people have filed for unemployment benefits where the COVID-19 pandemic is the main reason for getting out of work.
It won’t be just limited to the US economy and the unemployed that has been disturbed by the coronavirus, around 64 million people receiving Social Security benefits will be disappointed soon. It is speculated that Social Security beneficiaries won’t get any kind of raise in 2021 and other COVID-19 relief funds will also be taken back.
October COLA Announcements for Social Security Benefits
The U.S. Bureau of Labor Statistics (BLS) releases its inflation data for September in the second week of every October. It also determines the cost-of-living adjustment (COLA) for the Social Security Administration (SSA) for the next year. COLA can be considered as the raise that Social Security beneficiaries receive so that helps people with the increased cost of goods and services.
The US economy has been continuously falling and even the federal reserve is depleting due to the COVID-19 domino effects. The major income sources are almost gone and the COLA raise is already increased to 42 times for what it was in 1975. The inflation data from April indicates that the Social Security beneficiaries won’t receive any kind of COLA raise in 2021′
COVID-19 has Failed Economy, No Raise or Benefits for 2021
COVID-19 outbreak has already destroyed the economy and millions of people have lost their jobs. Even after the lockdown is over or a vaccine is invented, it will not be possible for the world to go back to normal. There will be so many industries closed down, theaters, malls, clubs, etc. going out of business.
COVID-19 has failed the economy and it won’t be possible for the US government to give a raise under such dire conditions. The benefits that come under Social Security will be reduced to medical care and housing, decreasing the monthly payment to balance things.