Less free coffee with those donuts
Here are three of the week's top pieces of financial insight, gathered from around the web:
Bigger COLA, bigger risks
The biggest cost-of-living adjustment to Social Security since 1981 will put more money in retirees' wallets, said Alan Rappeport in The New York Times — and put more strain on the program. The Social Security Administration announced a COLA, which is based on the inflation rate, of 8.7 percent for 2023, boosting retirees' average monthly payments by $146. However, rising benefits mean the program will be "under even more pressure to sustain itself." Annual reports in June showed that the Trust Fund used for paying benefits is ticking down toward depletion by 2034; that date will come sooner if COLAs continue at similar levels. If that fund — the result of years of surpluses — is depleted, Social Security will need to be funded by incoming payroll tax revenue, "unless Congress intervenes." That covers just 77 percent of payouts.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Less free coffee with those donuts
Some chains are discovering they've been too generous with their customer loyalty programs, said Laura Reiley in The Washington Post, but retracting them is bad business. Last week, Dunkin' Donuts infuriated many of its most faithful customers after it "revised its 8-year-old DD Perks program and released a new Dunkin' Rewards system that many said devalued their points." When customers learned they now must "accrue more than twice as many points" to obtain the same freebies, Dunkin' devotees flooded social media with angry posts. "What idiot do you think I am, Dunkin? I did that math," one former Perks member wrote. In August, Chili's said the company would have to "rein in free food giveaways" after concluding that "37 percent of customer checks had some kind of discount offer applied."
Goldman, Apple expand accounts
Apple and Goldman Sachs introduced a high-yield savings account for users of the Apple Card, said Steve Dickson and Sridhar Natarajan in Bloomberg. The account "builds on the existing credit-card partnership between the two companies." Apple didn't announce an interest rate, although it said the accounts would offer a rate that is competitive; Marcus, Goldman's existing savings account, "currently gives users an annual percentage yield of 2.15 percent." Apple is relying heavily on services to "help fuel growth in coming years" and has been steadily expanding its financial offerings. It has a "buy now, pay later" installment plan service in the works.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
This article was first published in the latest issue of The Week magazine. If you want to read more like it, you can try six risk-free issues of the magazine here.
Create an account with the same email registered to your subscription to unlock access.
-
Antony Gormley's Time Horizon – a 'judgmental army' of 100 cast-iron men
The Week Recommends Sculptures are 'everymen questioning the privilege of their surroundings' at the Norfolk stately home
By Adrienne Wyper, The Week UK Published
-
'King's horses take free rein through London'
Today's Newspapers A roundup of the headlines from the US front pages
By The Week Staff Published
-
Is pop music now too reliant on gossip?
Talking Point Taylor Swift's new album has prompted a flurry of speculation over who she is referring to in her songs
By Richard Windsor, The Week UK Published
-
Feds cap credit card late fees at $8
speed read The Consumer Financial Protection Bureau finalized a rule to save households an estimated $10 billion a year
By Peter Weber, The Week US Published
-
Nigeria's economic woes: what went wrong for African nation
Under the radar President Tinubu is struggling to tackle soaring inflation after 'shock therapy' of ending fuel subsidies
By Richard Windsor, The Week UK Published
-
Geopolitics and the economy in 2024
Talking Point The West is banking on a year of falling inflation. Don't rule out a shock
By The Week UK Published
-
How did America avoid a recession in 2023?
Today's Big Question A downturn was inevitable. Until it wasn't.
By Joel Mathis, The Week US Published
-
What rising gold prices can tell us about the economy in 2024
The Explainer Market hits all-time high, boosted by a weakening US dollar and rising global tensions
By Flora Neville, The Week UK Published
-
Inflation vs. deflation: which is worse for national economies?
Today's Big Question Lower prices may be good news for households but prolonged deflation is ‘terrible for the economy’
By The Week Staff Published
-
Interest rates: more ‘trauma’ for households
Talking Point Latest hike will cause ‘plenty of pain for borrowers’
By The Week Staff Published
-
Interest rates rise to 5.25% for first time in 15 years
Speed Read Inflation is slowing but at 7.9% it remains well above the Bank of England’s 2% target
By Julia O'Driscoll Published