In response to inflation, the Social Security Administration announced that 70 million Americans receiving Social Security and Supplemental Security Income will receive an increase of 1.3% in their cost-of-living adjustment (COLA).
But, this increase cannot capture all of the rises in costs for seniors.
CNBC reported that the average monthly benefit for 2021 will increase only by $20 each month.
Over the period of mid-January through April 20, 2021, 1125 people were surveyed by the Senior Citizens League, one of the largest nonpartisan seniors groups in the nation.
In their data, 62% of retirees believe that Social Security should guarantee a minimum of 3% for cost-of-living adjustments.
“When the prices on the goods and services that retirees depend on go through the roof, their Social Security benefits don’t buy as much, and that causes enormous financial stress for all retirees,” Mary Johnson, Senior Citizens League’s Social Security policy analyst, said
Members of the League recently announced that they were working with Congress to raise the retirement benefits of retirees to a 3 percent guaranteed minimum and include the Consumer Price Index for the Elderly (CPI-E) in calculations.
Read More: Biggest US Inflation Rise of 6.8% Since 1982 Makes It Hard For Middle Class to Survive
The Consumer Price Index for Urban Wage Earners and Clerical Workers increases from the third quarter of 2019 to the third quarter of 2020 were used to determine the latest cost-of-living adjustment, with inflation rising by 1.4% since last year.
As of the end of March, CNBC reported that the CPI-W was more than 3% higher than it was a year earlier. By contrast, the largest COLA was 5.8% in 2008.
According to the Social Security Administration, the average increase since 2010 has been 1.4%. Meanwhile, The CPI data through September will be used to determine whether Social Security benefits will increase.
