Social Security should provide benefits to help senior citizens afford their expenses in retirement. Unfortunately, the benefits most seniors receive are nowhere near enough. It can be quite a surprise to many retirees that Social Security income is not near as much as they expected. While it’s clear that the average person cannot live on Social Security alone, surprisingly little is being done about this problem. To make matters worse, inflation continues to drive costs higher and higher. Clearly, something needs to change.
Why Social Security is Not Enough for Senior Citizens to Live on
Social Security benefits simply do not provide enough to cover expenses needed to live on without additional retirement savings. It’s really hard to comprehend a system where no matter how long a person has paid into the system and how many years they worked, they do not receive what they earned. It’s hard to understand this system because it doesn’t make any sense. It is far beyond time to address this issue.
How COLA Fails to Keep Up
The annual Cost of Living Adjustment (COLA) sounds like a perfect solution to low benefits competing against inflation. Increasing benefits based on rising costs makes sense. Unfortunately, the system doesn’t quite work that way. COLA adjustments are based on estimated inflation rates that do not capture true costs for seniors. The factors to determine the adjustment do not take into account high costs for older Americans like Medicare premium hikes.
The Greatest Generation Benefits Act Can Help
While the COLA system is failing, there is still hope for many American senior citizens. While benefits are too low right now, there could be a change soon. A bill we call The Greatest Generation Benefits Act is determined to bring meaningful change to those age 82 and over. This legislation will give these seniors an additional $85 per month plus an extra 4 percent every year after. This is the change many older Americans need. Learn more here, and get the latest updates by following us on Facebook and Twitter.