Every year it seems I write about the Social Security Cost of Living Adjustment, and how it doesn't make up for increases in costs.
This year, it's worse than ever.
Even though we have a "high" COLA of 5.9% (the highest in 40 years!) that doesn't come close to matching inflation.
Last year fuel prices rose 59.1%. Protein sources (meat, fish, eggs) rose 11.9%. Inflation, over all, has increased more than 6.2% over last year as of October, with higher prices on the way.
The average Social Security recipient ($1500/ month) will receive $89 more in their check (I, personally, will receive less than that) before Medicare deductions, which are also increasing... by 14.5%
"The further we go, the behinder we get"
In 2019, I was on track to be totally debt free in 2022. One pandemic, two moves, and the death of my daughter later, I'm so deep in debt I don't see an end for another 5-7 years. The temporary increase in food stamps has not kept pace with the rising cost of food. I recently photographed some items in my local grocery store, including bacon, which has more than tripled in price since before the pandemic.
Gas prices here in CA are about $5./gallon locally. That means it costs me about $100 to fill up the tank. I don't drive much. I can't afford to. Not spending much gas money also means I have to plan to include transportation cost when I shop. Is it worth it to spend $1 less per pound on chicken if I have to spend $5 on gas to get to that store?
I won't lie. The $69 I get in my check every month would be a big help, but it would be bigger if it didn't mean my rent would go up by $23/month.
There are also individuals who will lose other benefits that will result in less income and higher expenses in 2022, because other social service agencies (Medicaid, SNAP, etc.) did not raise their eligibility limits accordingly, which may result in people who previously had their Medicare premiums paid by SLMB suddenly being faced with the $170.10 monthly bill, plus increases in their medication costs. I dodged that bullet this year by a mere $33/ month.
Things are getting worse and worse for seniors and the disabled. By 2034 (and now some estimates are moving it up to 2033), if there are no changes in what Americans are paying into Social Security and Medicare, it's estimated that the government will only be able to pay about 78% of the current benefit amounts. To put it in perspective, when I'm 74, my total monthly income will be reduced to $965/month. My disabled sons, who will be living on $841/month after this years COLA, will be living on $656.
Gas prices here in CA are about $5./gallon locally. That means it costs me about $100 to fill up the tank. I don't drive much. I can't afford to. Not spending much gas money also means I have to plan to include transportation cost when I shop. Is it worth it to spend $1 less per pound on chicken if I have to spend $5 on gas to get to that store?
I won't lie. The $69 I get in my check every month would be a big help, but it would be bigger if it didn't mean my rent would go up by $23/month.
There are also individuals who will lose other benefits that will result in less income and higher expenses in 2022, because other social service agencies (Medicaid, SNAP, etc.) did not raise their eligibility limits accordingly, which may result in people who previously had their Medicare premiums paid by SLMB suddenly being faced with the $170.10 monthly bill, plus increases in their medication costs. I dodged that bullet this year by a mere $33/ month.
Things are getting worse and worse for seniors and the disabled. By 2034 (and now some estimates are moving it up to 2033), if there are no changes in what Americans are paying into Social Security and Medicare, it's estimated that the government will only be able to pay about 78% of the current benefit amounts. To put it in perspective, when I'm 74, my total monthly income will be reduced to $965/month. My disabled sons, who will be living on $841/month after this years COLA, will be living on $656.
It's no secret that a lot of wealthy Americans aren't paying income tax. It's also no secret that the income limit at which individuals need no longer pay into Social Security is far too low. The problem is that the wealthy are politically empowered enough to not have to pay into the social systems that are part of our social contract, even those they directly benefit from like infrastructure. They are much less likely to want to pay into those programs that they do not directly benefit from, regardless of public opinion on the necessity of those programs.
Being on the tail end of the Baby Boomer Generation, I have something in common with Gen-X and a great deal of sympathy for Gen-Z. We all came into adulthood in a job market that relied on temporary and contract workers who are denied sufficient (and sometimes any) retirement benefits. We leave college in debt, remain in poverty the rest of our lives, and retire reliant on the Social Security system we've paid into all of our lives, a system that leaves us without sufficient income to keep a roof over our heads and food in the cupboard.
This year's COLA is not sufficient, and it's only going to get worse. The American Dream promises that if you work hard, you will be able to afford certain things: that little house with the white picket fence, a station wagon to load your kids into, and that once a year vacation camping trip. Now adays most of us just dream of a tiny apartment, enough quarters to wash our clothes, healthy food, clean water, and shoes that fit. Many of us don't get that.
Being on the tail end of the Baby Boomer Generation, I have something in common with Gen-X and a great deal of sympathy for Gen-Z. We all came into adulthood in a job market that relied on temporary and contract workers who are denied sufficient (and sometimes any) retirement benefits. We leave college in debt, remain in poverty the rest of our lives, and retire reliant on the Social Security system we've paid into all of our lives, a system that leaves us without sufficient income to keep a roof over our heads and food in the cupboard.
This year's COLA is not sufficient, and it's only going to get worse. The American Dream promises that if you work hard, you will be able to afford certain things: that little house with the white picket fence, a station wagon to load your kids into, and that once a year vacation camping trip. Now adays most of us just dream of a tiny apartment, enough quarters to wash our clothes, healthy food, clean water, and shoes that fit. Many of us don't get that.
Comments
Post a Comment