HomeSocial SecuritySocial Security COLAs Cannot Cover Seniors' Higher Costs Anymore

Social Security COLAs Cannot Cover Seniors’ Higher Costs Anymore

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.

NATE GARTRELL
NATE GARTRELLhttps://theeastcountygazette.com/
NATE GARTRELL is an author at TheEastCountyGazette.com, a publication in the East County region of San Diego County. He has been writing for the Gazette since 2012 and writes on many different topics including politics, business, health care and more.
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1 COMMENT

  1. 2022 we are supposed to get a 5.9% raise to our ss checks. 5.9% does very little to help . With any way I figure it I’m going to be worse off than expected from the inflation. At the minimum our ss checks should have raised 6.3%. With the cost of some insurances the raise will take the 5.9 and some on top. Thanks to our president selling our information to insurance companies so they could call us continually 50 to 60 times a day. This has made insurance companies raise their prices also.

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