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Insider's Report: Next Year's Social Security COLA Is Woefully Inadequate
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The health and financial security of millions of Americans depends so much on getting an adequate Social Security Cost-of-Living Adjustment (COLA) next year and every year. In recent years, millions of retirees have struggled under historically low or zero COLAs, while out-of-pocket health care expenses, especially prescription drug costs, continue to grow and grow. And next year's 1.3% COLA is among the lower COLAs seniors have received!
This year's Social Security COLA continues an alarming trend of record low or no COLAs, despite the fact that automatic COLAs were legislated to protect the buying power of Social Security beneficiaries!
The current COLA formula fails to take into account that seniors must spend a significantly larger share of their income on health care and housing expenses, even as these costs are rising faster than the rate of inflation. So how can Congress expect retirees to keep up now?
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."
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!
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. In response to the low COLA for 2021, U.S. Representative Peter A. DeFazio (OR-04) introduced a bill which would provide an emergency 3% Social Security COLA for 2021.
We must not let our lawmakers ignore the needs of so many seniors who rely on modest Social Security benefits for their basic needs … and whose retirement security depends on a fair COLA.
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REMINDER: Mail-in Ballot Deadline Approaching
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Record numbers of American voters are casting ballots by mail in the 2020 election. If you're considering casting an absentee or mail-in ballot, I urge you to do so early. If you decide to cast your vote by mail, please read all of the instructions carefully since each state has its own rules as to what counts as a legitimately cast ballot. And remember to sign your ballot before mailing it back. Early voting allows you to be able to fix any issues with your ballot if they arise.
In some states, ballots must be received by November 2nd or 3rd, while in other states, the ballot must be postmarked by November 2nd or 3rd. The U.S. Postal Service is urging voters to mail back their ballot at least a week before the election. Learn more about your state's rules and deadlines on absentee and voting ballot by mail.
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| Good Bills |
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The National Committee strongly supports the "Fair COLA for Seniors Act" (H.R. 1553), introduced by U.S. Representative John Garamendi (CA-03), which would adopt the Consumer Price Index for the Elderly (CPI-E) for the purpose of determining future Social Security Cost-of-Living Adjustments (COLAs) for Social Security beneficiaries.
Given the trend of zero or low Social Security COLAs over the past decade, many seniors must choose between paying for food, prescription medications and/or housing expenses. Since the current CPI does not account for the differences in the spending patterns of the elderly, such as their higher health care expenditures, a fully developed CPI-E would more accurately measure how inflation affects America's seniors. And so this legislation would go a long way in boosting Social Security benefits and strengthening the retirement security of America's seniors.
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| Ask Us |
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Whether you're currently retired or approaching retirement, the National Committee's "Ask Us" section can help answer your questions about Social Security. You can either search our archives for valuable advice on a broad range of concerns at www.ncpssm.org/ask-us-recent/ or email your question to [email protected].
This week's question is: I know that Medicare is deducted from your Social Security check at age 65. If I retire at 62, is Medicare deducted also?
Click here to read the answer.
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| Poll Results! |
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We asked our readers the following question in the last issue of Benefits Watch:
Should Congress pass the "Save Our Social Security Now Act"?
The results from our recent poll are fascinating, but they’re only available to National Committee members! Join the National Committee today and we’ll immediately give you the results of this important poll.
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Sign This
Help us pass legislation to nullify President Trump’s Payroll Tax Cut Executive Order! |
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Join Now
Your support sustains our campaigns in Washington to protect and strengthen Social Security and Medicare. |
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Scorecard
Find out how your members of Congress voted on key Social Security and Medicare issues. |
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| How Much Would Trump's Coronavirus Treatment Cost Most Americans? |
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President Trump spent three days in the hospital. He arrived and left by helicopter. And he received multiple coronavirus tests, oxygen, steroids and an experimental antibody treatment. For someone who isn’t president, that would cost more than $100,000 in the American health system. Patients could face significant surprise bills and medical debt even after health insurance paid its share. (Updated October 12, 2020, The New York Times, Sarah Kliff)
Read More →
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