The COLA for 2021 was announced in October, and unfortunately, it is not enough. The Cost of Living Adjustment is intended to keep Social Security benefits up to date with inflation. However, the amount seniors receive is too low to keep up with rising costs. The COLA for 2021 is only 1.3 percent. This small increase does not amount to much in the real world.
Why is COLA so Low in 2021?
The cost of living increase is based on inflation. However, there is a certain amount of guesswork involved. The amount of increase is based on predictions for the coming year as well as data from the current year. Of course, 2020 has been a very different time for us all. With the economic hit the country took with Covid-19, inflation has been slow. Due to the slower rate of inflation over this year, the annual benefits increase has been set low. The problem is that this does not take into account the economic challenges seniors are facing right now.
Low COLA is not a New Problem
The low increase in COLA for 2021 is troubling, however, it isn’t something new. The COLA increase in 2019 was only 2.8 percent, and it was the highest increase in seven years. Seniors have consistently received benefits that fall short. Social Security is designed to provide for those who already paid their share and spent most of their lives working. Instead, we have a system where hard-working Americans are not getting what they earned.
How the Social Security Benefits Act Affects COLA
We urge Congress to pass legislation we call The Social Security Benefits Act because it will change the lives of many older Americans. This change would give seniors over the age of 82 an extra $85 a month plus an additional 4 percent increase every year after – guaranteed. This would make a huge difference in the lives of many Americans. We believe strongly in giving more to the generation that gave the most. You can help by signing our petition and sharing with your friends and family on Facebook and Twitter. Also, be sure to follow The Greatest Generation for the latest updates.