Recent speculation has put the 2022 cost-of-living adjustments (COLA) for beneficiaries anywhere from an increase of at least 5.8%. This is a significant estimate for retirees nationwide as COLA calculations have not given a raise this high since 1983, as Forbes reports.

However, it’s not quite time for celebration yet. Despite this great news for seniors, this increase may not be enough for retirees relying on benefit payments.

In fact, Forbes explains that it is very possible the COLA, no matter what it ends up being, would be “absorbed by higher Medicare Part B premiums.”

COLA Calculations

Higher inflation has created larger COLA estimates from many different individuals. However, what exactly does inflation mean for beneficiaries?

According to National Interest, the COLA adjustment is meant to account for inflation, allowing senior citizens to retain their buying power as prices increase. However, this does not fix the diminished buying power seniors have faced over the past two decades.

Healthcare costs, for example, have eaten away at seniors’ COLAs.

Because of this, it is likely that any 2022 COLA calculated using the current formula will not be enough. Luckily, we have a solution.

Creating A More Financially Secure Future

The increasing healthcare costs cannot continue to outpace inflation. That is why Senior Security Alliance is taking action. We support a groundbreaking bill – The Senior Citizens Bill of Rights – that will guarantee senior citizens have more financial security.

One way the bill does this is by ensuring all COLA calculations include healthcare costs. This allows seniors to receive more money that can be used for any health complications, medications, and regular check-ups that are needed.

Learn more about our bill and how it can help seniors nationwide. Then, make sure to join us in urging politicians in Washington to pass this essential bill now.