Social Security provides for an annual cost-of-living adjustment (COLA) to help benefits keep pace with inflation. That’s why it’s such an important part of the program and one that retirees track closely. This year, seniors will see an extra $56 per month on average thanks to the 2.8 percent COLA.
That’s a modest increase, but certainly better than nothing. According to an article by AOL, that can happen. In 2009, 2010, and 2015, there was no COLA because inflation was close to zero.
The good news is that even if there is no COLA, Social Security recipients don’t lose previous COLAs. The article points out, “Like some retirement annuities that pay a guaranteed rate, seniors don’t have to worry about receiving less due to deflation.”
The big problem is that the formula used to calculate the COLA does not take into account the actual spending habits of those it is supposed to help — retirees. COLA is calculated based on expenses incurred by wage earners, and because of that, seniors have been losing buying power.
Council of Seniors Wants to Give Retirees More Money
The current COLA is not doing enough to help struggling seniors. All of us here at the Council of Seniors 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.