For millions of older Americans, Social Security is their primary source of retirement income. With the average monthly benefit payment being about $2,000, it’s easy to see why seniors struggle financially, especially with rising costs.
The annual cost-of-living adjustment (COLA) is designed to help make sure benefits keep pace with inflation. The problem, according to a Yahoo! Finance article, is that the way the COLA is calculated tends to fail seniors because it does not reflect their actual spending.
Social Security COLAs are based on third-quarter changes to the Consumer Price Index for Urban Wage Earners and Clerical Workers, or CPI-W. The article points out that Social Security beneficiaries “tend to spend a large portion of their income on healthcare, which is not heavily weighted in the CPI-W.” Senior advocates believe the solution is simple – adopt a new COLA calculator. There are calls to use the Consumer Price Index for the Elderly, or CPI-E, which better reflects senior spending.
Council of Seniors Wants to Give Retirees More Money
That would certainly be welcome, but those of us here at the Council of Seniors want seniors to receive the money they should have gotten years ago. We are working hard to get Congress to passThe SAVE Benefits Act. This crucial bill will put $581 back in seniors’ pockets to make up for Social Security cost-of-living adjustments that were far too low for years.
Greedy Washington politicians are using retirees’ hard-earned money in other ways, but we’re dedicated to giving it back to those who are rightfully entitled to it.
Please take a moment and sign our petition today to show your support.