In the United States, about one in ten seniors lives in poverty. Social Security, introduced in the 1940s, was created to help prevent older Americans from falling into financial hardship. At the time, more than half of seniors were living in poverty.
While Social Security has significantly reduced senior poverty, rising inflation in recent years has hit retirees hard. Around 40% of Social Security beneficiaries rely solely on these payments without other retirement income, such as pensions or 401(k) plans.
The Impact of The Decrease in Purchasing Power Among Retirees
For decades, Social Security’s Annual Cost-of-Living Adjustments (cola) have struggled to keep up with inflation, leaving retired people with reduced purchasing power. A study by The Senior Citizens League (SCL) Revealed that Social Security Benefits Have Lost 36% of Their Purchasing Power Since 2000.
One Reason for This Is How The Cola Is Calculated. The Social Security Administration (SSA) Uses the Consumer Price Index for Urban Wage Earners and Clerical Workers (cpi-W). However, This Formula Doesn’t Reflect the Spending Patterns of Seniors Who Tend to Spend More on Healthcare and Less on Housing.
To Address This, Lawmakers Like Senators Bernie Sanders and Ruben Gallego Have Proposed Switching to The Consumer Price Index for The Elderly (cpi-E). If used, the Cola for 2025 Could Increase by 3%. However, no changes have been finalized, leaving many retired people seeking additional financial support.
Online Tools for Extra Benefits
Seniors can explore additional financial programs using tools like the Benefits Check, which the National Council on Aging created. By Entering Their Zip Code and Income, Seniors Can Discover Benefits They May Qualify for In Their Area.
Food Assistance Through Snap
The Supplemental Nutrition Assistance Program (SNAP), Commonly Known as Food Stamps, Helps Eligible Households Reduce Grocery Bills. Despite Its Benefits, only 40% of Eligible Seniors Are Enrolled in The Program.
To Qualify, Most Households Must Have an Income Between 100% and 130% of The Federal Poverty Line. Seniors Interested in Applying Can Find State-Specific Information and Support on The USDA’s Website.
Lower Prescription Costs with Extra Help
The Extra Help program Is Designed to Help Medicare Beneficiaries Reduce Prescription Drug Expenses. Seniors Who Qualify for Medicaid or Supplemental Security Income Are Automatically Eligible. To Learn More, Seniors Can Contact Their State Medical Assistance Office.
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Archer Bannister is a journalist with 4 years of experience covering hard-hitting stories. Currently working with Mikeandjonpodcast, Archer specializes in delivering timely and in-depth updates on a variety of topics, including crime news, politics, and national issues affecting the USA. His expertise and dedication to delivering accurate, impactful news make him a trusted voice for audiences seeking to stay informed on critical topics.
