Social Security benefits don’t go as far as they used to. In fact, in the last 20 years, their purchasing power has dropped 30%, The Motley Fool reports. But what does this gap mean for senior citizens today?
“Purchasing Power”
What does the phrase “purchasing power” mean? The Motley Fool provides a simple explanation. They explain that a senior citizen who spent $100 in the year 2000 would only be able to buy $70 worth of the same things in 2020.
According to the article, the average benefit collected for retirees in 2000 was $816 a month. With the COLA increases over the years, these retirees would get $1,246 a month in 2020.
However, the article explains that these retirees would need an extra $380 a month, or a monthly benefit of $1,626, to buy the same amount of goods and services bought 2 decades prior.
What can $380 pay for?
So, what could senior citizens do with this additional $380 a month? Well, $380 can go a long way.
In fact, $380 can cover most of the monthly utility bills. According to move.org, the average total monthly utilities for a house in the United States is $398.24. The costs break down as follows:
- Electricity: $110.76
- Natural Gas: $72.10
- Water: $70.39
- Cable TV: $85
- Internet: $60
- Trash/Recycling: $14
This means that senior citizens could rely less on their additional income for their monthly bills, allowing them to relax and enjoy retirement.
Creating Change
Senior Security Alliance is urging the politicians in Washington to provide a more financially secure future for senior citizens.
Our bill, The Senior Citizens Bill of Rights, defines the very right of financial security that all senior citizens deserve, and ensures politicians recognize it. This includes changing the calculations of the cost-of-living-adjustment (COLA) to include healthcare costs—right number 3 of the bill.
Join us in the fight towards a more financially secure future for senior citizens by acting now.
