Many senior citizens are looking forward to the impending increase in their Social Security payments. After a year of surging prices in many categories, the Social Security Administration decided on the largest cost-of-living adjustment (COLA increase) since 1982.
However, it seems that this raise—although it is the largest seen in years—may not be enough for many.
How Decision Was Made
This 5.9 percent increase was decided upon after reviewing the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). This index reflects the spending habits and patterns of urban and clerical workers, not senior citizens.
Unfortunately, this formula does not take several other factors into account; specifically, healthcare costs are not included when COLA increases are calculated.
The Impending Problem
Recently, inflation rates came in at 6.8 percent, The Motley Fool reports. This means the 5.9 percent COLA, although historically large, is not enough to help seniors.
To make matters worse, senior citizens won’t see the increase in full. Rather, the increase to Medicare Part B premiums will eat away part of the COLA increase before individuals even get their paychecks.
In fact, seniors can anticipate an average increase of $29.60 to their Medicare Part B premium. This increase knocks the average seniors’ $92 increase provided by the 5.9 percent COLA to a $62.40 increase—a decrease that could be devastating for many seniors trying to stay afloat, especially with the continual in basic living costs.
How We Can Help
Senior Security Alliance knows that senior citizens deserve a better formula for annual COLA calculations. That’s why we are taking a stand.
Our organization can help seniors achieve more financially secure futures with the passage of our revolutionary legislation: The Senior Citizens Bill of Rights. This provides seven guarantees, including one right ensuring that any COLA calculations will include the ever-increasing costs of healthcare.
This essential addition to the COLA calculations will help seniors nationwide, giving back some of the buying power that has degraded over the years. To learn more about The Senior Citizens Bill of Rights and how you can support our efforts to make Congress pass this important legislation, visit our page here.
