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Insider’s Report: Expect a Much Lower COLA Next Year
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The health and financial security of you and millions of older Americans depends so much on getting an adequate Social Security Cost-of-Living Adjustment (COLA) each year.
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While last year’s COLA was 8.7%, the highest in decades, it still was not enough to offset the soaring costs of food, housing and prescription drugs. In recent years, millions of
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retirees have struggled under historically low or zero COLAs, while out-of-pocket health care expenses continue to grow.
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While last year’s COLA was 8.7%, the highest in decades, it still was not enough to offset the soaring costs of food, housing and prescription drugs. In recent years, millions of retirees have struggled under historically low or zero COLAs, while out-of-pocket health care expenses continue to grow.
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Seniors can expect to receive just a 3.2% COLA next year. And with the exception of a few years, it continues an alarming trend of low COLAs despite the fact that automatic COLAs were legislated to protect the buying power of Social Security beneficiaries!
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The current COLA formula fails to take into account that seniors must spend a significantly larger share of their income on health care expenses, even as these costs are rising faster than the rate of inflation. So how can Congress expect retirees to keep up now?
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They can’t. In fact, for years older Americans have endured a declining standard of living due to a deeply flawed COLA. The Government Accountability Office (GAO) has admitted that, “federal retirement benefits could be subjected to adjustment based on potentially inaccurate information.”
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Bottom line, Social Security is basing “raises” off of the spending habits of working-age urban and clerical workers — not off of the very different spending patterns of seniors who are actually receiving Social Security benefits!
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That’s why the National Committee is calling on lawmakers to pass legislation introduced in Congress that changes the COLA calculation by measuring inflation on the goods and services that seniors rely on — especially health care, groceries and housing. U.S. Representative John Garamendi (CA-08) has introduced a bill called the "Fair COLA for Seniors Act” (H.R. 716) which would ensure seniors receive a fairer and more adequate COLA every year.
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America’s seniors have paid into the system their entire working lives. They shouldn’t have to walk a financial tightrope every month, in constant fear of falling into poverty. This Congress, representing the wealthiest country in the world, must do better for its older — and most vulnerable — citizens.
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Please sign our Petition to Congress urging lawmakers to pass the Fair COLA for Seniors Act today!
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Caption: former Acting Social Security Administration Commissioner Carolyn Colvin with NCPSSM President and CEO Max Richtman
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Town Hall Reveals Enduring Value of Social Security
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The NCPSSM/AARP Social Security town hall series continues to make stops across the country. On September 28, Las Vegas hosted the latest town hall entitled, “Social Security: Here Today, Here Tomorrow.” Nearly 100 Las Vegas residents in attendance heard from some of the nation’s leading experts about the enduring value of Social Security.
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NCPSSM President and CEO Max Richtman warned against proposals in Congress that would cut Social Security benefits, including raising the retirement age to 69 or 70. “Just because some people are living longer doesn’t mean all Americans can work longer. Raising the age is a benefit cut, plain and simple,” he said.
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Max also pushed back against congressional proposals to create a special commission to scrutinize Social Security on the false assumption that it contributes to the debt. (As a reminder, Social Security is completely self-funded and does not add a penny to the debt.)
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“If recommendations from a commission are bundled together and enacted quickly, it allows Congress to avoid political accountability,” Max told the audience. He said that some members of Congress want “political cover” to cut benefits, knowing that Social Security is enormously popular with voters.
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The final “Social Security: Here Today, Here Tomorrow” town hall will take place in Milwaukee, Wisconsin on November 1, 2023.
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Medicare Open Enrollment Has Begun
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Have you looked at your Medicare Part D and Advantage plans to ensure they still work for you? Does it make more sense to enroll into traditional Medicare? Each year, both Medicare Advantage and Part D plans make changes to their benefits, cost-sharing, provider networks and monthly premiums. That means the plan that best served you in 2023 may not be the best plan for you next year.
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We certainly understand why so many beneficiaries choose inertia rather than the tedious and often challenging task of comparing the various private insurance plans offered in Medicare Advantage, Part D or joining — or staying in — traditional Medicare. However, given that out-of-pocket health care costs consume 28% of the average Social Security check, it’s especially important that beneficiaries take the time to ensure last year’s plans still meet their needs.
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And to help you or a loved one navigate through the sometimes complex Medicare program, you can find unbiased help from trained and knowledgeable counselors through your local State Health Insurance Assistance Program (SHIP).
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Ask Us!
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Whether you’re retired or approaching retirement, our team of experts in the field of Social Security policy is available to answer your questions about benefits.
You can either search our archives for valuable advice on a broad range of concerns or submit your question here.
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This week’s question is: Do pension offsets apply only to federal government pensions or also to state, county and city pensions?
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Click here to read the answer.
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Ask Us
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Whether you’re currently retired or approaching retirement, we can help answer your questions and provide valuable advice on Social Security.
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Join Now/Donate
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Your support sustains our campaigns in Washington to protect and strengthen Social Security and Medicare.
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Social Security Benefits
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Learn more about the Social Security program and the policies the National Committee supports that would strengthen your earned benefits.
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“If the purpose of the COLA is that you don't lose ground in your benefit, then the formula has to be accurate, and you have to measure inflation as it's impacting seniors,” NCPSSM President and CEO Max Richtman told NPR’s Scott Horsely on “All Things Considered.” (October 12, 2023, National Public Radio, Scott Horsley)
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Read Here →
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During the eight-week Annual Enrollment Period, which starts on October 15, we and our fellow Americans aged 65 and older will have an opportunity to enroll in the traditional Medicare program or one of its private competitors, collectively known as Medicare Advantage. We must decide by December 7, when the enrollment period ends. Plan changes take effect on January 1, 2024. (October 13, 2023, Next Avenue, Amy McVay Abbott)
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Read Here →
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The SWIFT Act is cosponsored by Sens. Richard Blumenthal (D-Conn.), Amy Klobuchar (D-Minn.), Debbie Stabenow (D-Mich.), Patty Murray (D-Wash.) and Bernie Sanders (I-Vt.). It also has been endorsed by a number of organizations, including the National Committee To Preserve Social Security and Medicare, the Alliance for Retired Americans, the Women’s Institute for a Secure Retirement and the AFL-CIO. (September 26, 2023, Go Banking Rates, Vance Cariaga)
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Read More →
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A federal court judge in Ohio denied an attempt by the US Chamber of Commerce to immediately stop the Biden administration’s implementation of Medicare’s new drug price negotiation program. (September 29, 2023, CNN, Tami Luhby)
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Read More →
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The trust fund is scheduled to run out of money in 2034. What went wrong? Stephen Goss, who has been the Social Security Administration's chief actuary for more than 20 years, posed this question recently during a retirement conference hosted by the Harkin Institute. (September 27, 2023, Market Watch, Brett Arends)
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Read More →
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Social Security retirement benefits provide guaranteed monthly income for the duration of your retirement. But when you die, your checks stop coming. Certain family members may be eligible to receive survivor benefits based on the deceased beneficiary’s earnings record. (October 2, 2023, CNBC, Lorie Konish)
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Read More →
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President Joe Biden announced today that the manufacturers of all of the first 10 prescription drugs selected for Medicare's first price negotiations have agreed to participate, clearing the way for talks that could lower their costs in coming years. (October 3, 2023, ABC News, Will Weissert)
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Read More →
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