The recent announcement of a 5.9% increase in the annual Social Security cost-of-living-adjustment (COLA) comes at a time when inflation continues to surge in the economy, leaving seniors concerned it won’t be enough for 2022.
As a result, a new bill is being introduced that would change how future COLAS are determined. It would create a new Consumer Price Index (CPI-E) designed to incorporate how health care expenses affect the elderly.
Analysts believe this change will add 2% more to what traditionally has been provided in annual COLA increases through the current formula that focuses on urban wage earners and clerical workers.
The proposed law includes other improvements as well. The changes will apply to all Social Security recipients, not just the elderly. It will help low-income workers by establishing a new minimum benefit 25% above the poverty line to ensure the lowest benefit does not lag behind inflation.
Council of Seniors Backs Better Benefits for Seniors
Stronger benefits will ease retirement concerns, and that’s why we’re so focused on getting another bill passed that can help put more money in seniors’ pockets. Here at Council of Seniors, we strongly advocate for the passage of The SAVE Benefits Act. Congress must make up for the inadequate Social Security cost of living adjustment paid out in some recent years. Eligible seniors will be reimbursed for the $581 shortfall if it passes.
Take time now to sign our petition. Working together, we’ll show Washington politicians the time is right to strengthen Social Security. We’ll truly appreciate the support of you, your neighbors, and your friends to make this a reality.
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