Experts have been working to figure out estimates for next year’s Cost-of-Living Adjustment (COLA). With the current state of inflation, estimates are showing that Social Security recipients can look forward to a COLA increase of 9.6 percent. With average retirement benefits equaling $1,656 a month, this estimated increase would lead to an extra $158.98 for the average retiree.
Unfortunately, this is not enough. Current retirees are left feeling the impact of inflating prices.
Current Impact of Inflation
After watching inflation raise the costs of everyday necessities, senior citizens struggle to keep up. With fixed monthly payments, the rapid increase in prices decreases the fixed income’s buying power.
This means that anyone who bought $100 worth of goods or services with their benefit payments last year would fall short when paying for those same goods or services this year. Ultimately, this leads to seniors having less money to spend on things.
Overall, Preston Point reports the 12-month percentage change for a few categories and the results are surprising. The article explained that food costs rose 10.4 percent, electricity jumped up 37 percent, and gas prices skyrocketed 60.2 percent, in that period.
And these increases don’t take the mushrooming costs of medical expenses into consideration.
How to Help
This is why it’s critical we step in. Senior Security Alliance is dedicated to helping senior citizens achieve more financial security. The best way to do this is by getting our bill passed. This groundbreaking legislation demands that the annual COLA calculations account for the rising healthcare costs; this new calculation would allow seniors to have more money to help deal with the current effects of inflation.
Still not convinced that seniors need more financial assistance? Check out the responses in our recent nationwide survey. There you will see that seniors throughout the country agree— our bill will help senior citizens achieve a more financially secure future.
Help us create a more financially secure future for retirees nationwide and sign our petition now. Then, make sure to stay informed by following us on Facebook and Twitter.
