Silver linings
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Publisher’s Note: The following is an analysis of current events and economic impacts facing residents in our area.
By Jeff Snyder
MOUNT AYR, Iowa — According to the 2020 census, Ringgold County has approximately 4,976 people. Of these, 1,415, or 28 percent are age 65 or older. Statistics further indicate that some 87 percent of eligible participants are actively receiving social security benefits.
Each year the federal government looks at the economy and applies a formula to make adjustments to benefit recipients, in an attempt to help beneficiary’s keep pace with expected inflation. The COLA (cost of living adjustment) is based on a calculation of the rate of inflation reviewed in the third quarter of each year.
Anyone who owns a car can attest to the rising costs facing everyone, including fixed income retirees. These increases in costs to live are tied directly to the country’s fiscal performance during the year. It is no secret that global issues are having an impact on the price of gasoline. Additionally, these fuel cost increases are trickling down to groceries and even housing costs to a certain extent. The COLA increase for 2026 was 2.8 percent, reflecting a strong performing economy in the previous year. Lower COLA increases are typically fairly accurate on the impact the country’s performance has on the day to day lives of the typical retiree. Events such as those taking place in the Middle East are typically short term and quickly revert back to a more normal pace once the issues are resolved.
If there is any good news to Social Security recipients, it’s that once the rate of benefit adjustment kicks in, it stays that way. This year economists are anticipating a COLA adjustment of approximately four percent. Final determination depends on the actual numbers generated during the review quarter, but projections are typically pretty accurate at this time of the year. Four percent will have an important and positive impact on beneficiaries and in fact have a greater impact as inflation rates continue to stabilize over time. Benefit impacts are not set at any level to go into effect until the turn of the new year, but retirees will be able to better plan their finances with this knowledge.
NOTE: Ag heavy communities, like Ringgold County, are particularly vulnerable in times such as these as farmers and ranchers consume copious amounts of fuel during planting and harvest season. Fuel cost stability can mean the difference between a profitable year and a year in which growers lose money. These costs are ultimately driven back through the supply chain and end up on the shelf tags of the local grocery stores.
