According to a recent estimate, the 2022 COLA could be as large as a 4.7% increase. This would be the largest increase retirees have seen in over a decade. The proposed estimate was created using data based on a 12-month average inflation projection, CNBC reports.
However, even if the estimated 2022 COLA is correct, senior citizens may find their benefits still don’t go very far. In fact, the article reports that if the current inflation trends continue, seniors could see their benefit payments lose even more buying power.
COLA Calculations
COLA calculations are made using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). This data is regularly updated and provided by the Bureau of Labor Statistics. The latest findings can be found here.
However, the CPI-W does not account for the various expenses senior citizens have. Rather, it is data that measures a change in prices paid by two population groups—urban consumers and urban wage earners and clerical workers.
In particular, these prices do not reflect healthcare costs, and healthcare is a necessity, especially for seniors. While Medicare is a great program for some, it does not cover all healthcare expenses. Rather, some individuals are required to pay out-of-pocket expenses—a fee that benefits payments may not cover.
Change is Needed
This is why it is crucial we help seniors achieve more financial security, and the best way to do this is by getting the Senior Citizens Bill of Rights, passed. Among other things, this bill demands that the annual COLA calculations account for the rising healthcare costs, providing seniors with more finances to pay for any out-of-pocket expenses.
Still not convinced that seniors need more financial assistance? Check out the responses in our recent nationwide survey. There you will see that seniors throughout the country agree— our bill will help senior citizens achieve a more financially secure future.
Help create this necessary change by signing our petition and urging the politicians in Congress to pass this groundbreaking bill.
