Every year, in an attempt to help balance out the rising costs of inflation, the Social Security Administration (SSA) calculates an annual increase for benefit payments. However, with the skyrocketing prices seen today, many senior citizens are left to flounder in financial insecurity. It’s time for a system change — cost-of-living adjustment (COLA) calculations need improvement and unjust taxation must stop!
Annual Cost-Of-Living Adjustments—Are They Really Helping?
To help compensate for inflation, Social Security benefits receive an annual increase. Unfortunately, this increase does not consider many factors; the biggest and most impactful factors disregarded include the costs of healthcare and continually rising costs of everyday items.
In fact, reports have deemed annual COLA increases useless, and found the increase mostly eaten up by rising Medicare premiums.
New Proposals For Change
There have been some proposals on how to help senior citizens as inflation continues to rise. One argument calls on the politicians in Washington to “index the taxation of Social Security benefits.” This proposed fix would give more retirees the freedom to receive the entirety of their benefit payments.
As things currently stand, 56% of Social Security recipients find their benefit payments unjustly taxed.
Demanding More Financial Security
While this proposal is a great place to start, things must go even further. Senior Security Alliance recognizes that many retirees depend on their fixed monthly incomes. That is why we are calling for an end to this wrongful taxation and demanding a new formula for COLA calculations through our bill The Senior Citizens Bill of Rights.
By ending the taxation of benefit payments, senior citizens are guaranteed a more financially secure retirement. For more information on our bill, progress made, and other things relating to Social Security and retirement, be sure to follow us on Facebook and Twitter.
