Understanding Social Security COLA and What it Means for Retirement

Social Security COLA and retirement
Via Pixabay

What is COLA?

The Social Security COLA (Cost-of-Living Adjustment) is an important component of Social Security Benefits. Social Security is designed to provide for those who have spent years working toward their retirement. Americans who have paid in for decades deserve to finally relax and live comfortably. Unfortunately, inflation prevents recipients from having sufficient income in retirement.

This is the basis of what COLA is and why it exists. The Social Security Administration announces the annual adjustment to offset inflation. But this adjustment doesn’t go far enough. Even with the highest COLA in decades, the 2022 adjustment fails to keep up with historic inflation rates. This simply cannot work for older Americans.

How Low COLAs Impact Seniors

A cost-of-living increase, of course, should provide sufficient income to live on. However, the typical adjustment does not. A significant number of seniors struggle to pay their bills each month. This is not how it should be for people who already did their part. These people have earned more than they are receiving in retirement.

Essential needs like food and heat get more expensive every year. The price of internet and phone services we all rely on to stay connected continues to climb. Furthermore, healthcare costs are an ongoing challenge for many older Americans. Social Security benefits fail to keep up with these increases. Something needs to change!

Seniors Need This One Important Change

Clearly, the system isn’t working. We support legislation we call The Greatest Generation Benefits Act. While so many Americans are struggling, this congressional bill offers a solution. Under this act, those 82 and over would receive an additional $85 per month and 4 percent every year. This would change everything. The bill, however, needs your help. Please sign our petition to tell Congress it’s time to pass this important legislation.