Social Security Benefits are intended to help older Americans in retirement. Unfortunately, these benefits are not enough. It comes as an unpleasant surprise to many that Social Security income doesn’t go near as far as they expected. While it is clear that the average person cannot live on Social Security alone, little is being done about this problem. To make matters worse, we’re facing skyrocketing inflation. The system needs to change.
Why Social Security is Not Enough to Live on
Social Security benefits do not cover enough expenses to live on without additional retirement savings. The problem is that regardless of how long a person paid into the system and how many years they worked, they do not receive what they earned. Benefits have been extremely low for years, but they suffer even more when annual increases fail to keep up with inflation.
Why Can’t COLA Keep Up?
The annual Cost of Living Adjustment (COLA) is designed to bring benefits up every year to meet current prices. The adjustment is based on estimated inflation rates, however, this estimate does not capture true costs for seniors. The factors used to determine the adjustment do not take into account high costs for older Americans like Medicare premium hikes.
How Legislation Can Help
While the COLA system is failing, there is still hope. Of course, benefits are too low right now. But a bill we call The Greatest Generation Benefits Act is focused on changing things for those 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.