The Senior Citizens League (TSCL), one of the nation’s biggest nonpartisan senior citizens advocacy organizations, has amassed over a million signatures on a petition seeking support and attention from the Social Security sector for an emergency $1,400 stimulus check to combat extraordinary inflation.
With the 5 percent inflation spike seen over the previous 13 months, the petition claims that the COLA increases are insufficient for seniors living on a fixed income.
Benefits for Social Security beneficiaries increased by 1.3 percent in 2020. Now, the CPI for 2021, which will take effect on January 1, 2022, may be above 6%. For the typical Social Security beneficiary, this represents a roughly $100 rise.
According to the Senior Citizen League, the rise will amount to more than $90 each month. That would increase the total monthly Social Security income to $1,652. During the month of October, the final decision on a COLA rise for seniors receiving Social Security payments will be made. It is determined by a variety of variables, the most important of which being inflation.
The inflation rate has been carefully monitored in recent months, as the recovery from the coronavirus epidemic and stimulus checks given in 2020 and early-2021 encouraged increased spending despite the economy’s general underperformance. In the past, factors such as low fuel costs have slowed COLA hikes.
Seniors Claim About Social Security COLA Increase
Many retirees are taking things one day at a time. On an already limited fixed income, a $1,400 cheque might assist elderly people buy food. According to AS (via Yahoo! Finance), about 25 percent of seniors reported going without meals to stretch their monthly salary.
The meat business is one of the industries that has seen the most price increases. Although average inflation is about 5 percent, chicken prices are up 7.2 percent, hog prices are up 9 percent, and ground beef prices are almost 13 percent more than last year.
Most expenses from rising inflation and healthcare expenses could eat it away. A fourth stimulus check may aid struggling seniors in recovering from a year of rising costs and supply chain disruptions that have hampered the recovery of essential food goods.
Issues With Big COLA Increase
Seniors will get more money in Social Security payments each month, but expenses will rise as well. Fingerlakes said inflation and increasing costs in the present economy are to blame for the significant COLA rise.
Another major problem is that Social Security income has lost 30% of its buying value since 2000. While a $100 rise is substantial, it will only add around $70 to the economy’s purchasing power.
Over the next decade, Social Security will face an existential dilemma. According to the fund’s board of trustees’ most recent projections, it would run out of reserves in 2033 or 2034.