After an unprecedented year of inflating prices, senior citizens can expect a larger-than-normal boost to their benefit payments each month during 2022. This bump in payment brings the average retiree from earning $1,565 each month to $1,657 each month, according to Go Banking Rates.

While this large increase may seem generous, it is actually far from enough.

Problem #1: Benefit Payment Buying Power Decreasing

According to The Motley Fool, almost 45 million senior citizens rely on Social Security for at least half of their monthly income. However, this money isn’t going as far as it should.

Since the year 2000, senior citizens have seen the buying power of their benefit payments decrease. This means that what $100 used to buy in goods and services in 2000 will only buy around $66 worth now.

And if this wasn’t problematic enough, inflation continues to drive costs higher, causing problems for seniors who rely on fixed incomes.

Problem #2: Healthcare Costs

The cost of healthcare is not decreasing. In fact, over the past two decades, Medicare Part B premiums have seen an increase of 5.9%. This large increase overshadows the average 2.2% increase in benefits seen over the same amount of time.

And because healthcare is not included in COLA calculations, this gap continues to grow. As the gap widens, beneficiaries continue to see their COLA increases consumed by healthcare costs.

The Solution

Senior Security Alliance believes that senior citizens should feel secure in their finances. To help this become a reality, we have crafted a groundbreaking piece of legislation titled The Senior Citizens Bill of Rights.

In this bill, seniors are guaranteed their benefits are never cut and COLA calculations account for healthcare costs—two essential ideas that can help seniors achieve more financial security in their retirement.

To learn more about our organization or find out how you can help support our bill, visit our page here.