As inflation continues to rise and wreak havoc on the finances of many, retirees find their fixed monthly incomes insufficient. Luckily, a new bill has been proposed to Congress; this bill hopes to relieve some of the financial burdens senior citizens are facing during retirement.
Here’s what you need to know.
The Proposition
On June 9, Representative Peter DeFazio and Senator Bernie Sanders introduced The Social Security Expansion Act. This bill is looking to boost annual Social Security payments by $2,400.
“Many, many seniors rely on Social Security for the majority, if not all, of their income,” Martha Shedden, president of the National Association of Registered Social Security Analysts, told CBS News. “$200 a month can make a significant difference for many people.”
On top of the boost to benefit payments, the proposed bill is looking to tweak the annual cost-of-living adjustment (COLA). Rather than using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), the bill would try to reflect the spending patterns of senior citizens more accurately by using the Consumer Price Index for the Elderly (CPI-E).
Helping Social Security’s Finances
Along with boosting benefit payments, the proposed bill seeks to help the Social Security program gain more finances. If the government wants to prevent the program’s impending financial shortfall and the benefit cuts that would result, changes must be considered.
In order to do this, the bill increases the Social Security payroll tax on workers earning a higher income. Currently, workers only pay Social Security taxes on the first $147,000 of their annual income; for higher earners, this means they have earnings that go untaxed.
To help boost Social Security’s revenue, the bill proposes that high earners would see their earnings taxed for Social Security again after earning $250,000. The article notes that this change would only impact the top 7 percent of earners.
While the goal of this bill is commendable, the bill itself is not enough of a guarantee for retirees.
We Demand More Financial Security
Senior citizens deserve more financial security throughout their retirement. Seniors deserve guarantees. They should know that their hard-earned benefit payments will never be cut; they deserve a new formula for the COLA calculations, a formula that will consider the skyrocketing prices of healthcare. That is why Senior Security Alliance is pushing for change.
Our groundbreaking bill, The Senior Citizens Bill of Rights, will provide retirees with seven guarantees. Each guarantee helps senior citizens feel more financially secure, allowing them to live through their retirement in comfort.
To learn more about our grassroots organization and our amazing founder, check out our page here. Then, be sure to stay in the loop on all our progress and any news regarding Social Security by following us on Facebook and Twitter.
