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John,
The Social Security Administration just announced that the Cost of Living Adjustment for 2021 will be only 1.3%―barely an increase at all.
As the pandemic rages ever onward, seniors’ costs are going UP, not down. Social Security’s modest benefits―only $1,400 per month, which is the primary income source for ⅔ of seniors 55 or older―are stretched thinner than ever. Seniors are at the highest risk of death from COVID, and thus must rely more on delivery services to feed themselves and get vital medicine.
And that’s for those who don’t get sick―hospitalization from COVID is more frequent for older Americans, and that’s not cheap either. Any senior will tell you, their costs went up a lot more than 1.3% last year.
So what’s the problem? Social Security undermeasures the inflation that Social Security beneficiaries face. Its inflation is based on inflation for workers, not retirees and people whose disabilities make them unable to work.
Social Security beneficiaries in general spend more on health care and long-term care, where prices are rising more rapidly, and less on more stable expenses like clothing and recreation. Some younger people have saved money on food during the pandemic by dining out less, while seniors who weren’t dining out before are dealing with rising grocery costs and delivery fees.
What can be done? In 1987, Members of Congress instructed the Bureau of Labor Statistics (BLS) to produce an index measuring the cost of living of the elderly. In response, BLS developed the Consumer Price Index for the Elderly (CPI-E), but Congress has not yet applied it to Social Security. It’s long past time to fix that. That is exactly what the Democrats propose to do if they win in November.
As Donald Trump raids the Social Security and Medicare trust funds to bolster his reelection, Democrats are fighting back! Social Security Works is making sure that seniors know where each side stands. Chip in $7 so that we can keep our voter outreach up through Election Day!
Thanks,
Alex Lawson
Social Security Works
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