Social Security’s Cost-of-Living Adjustment Isn’t Keeping up with Prices Retirees Pay

Apr 27, 2021

This year’s Social Security cost-of-living adjustment was 1.3%, yet many of the costs seniors face are rising much more quickly.

In 2021, the estimated average monthly benefit increased by $20 per month. Many expenses have dramatically risen in the past year, according to a new analysis of Consumer Price Index data from the Bureau of Labor Statistics done by The Senior Citizens League, a nonpartisan senior group.

A recent poll conducted by the league found that 62% of retirees support a guaranteed minimum for annual Social Security benefit increases. The survey was conducted in January through April and included 1,125 participants.

The league is lobbying Congress for a guaranteed minimum annual increase, as well as a shift to use the Consumer Price Index for the Elderly, or CPI-E. Some advocates believe that index is a better measure of costs seniors face versus the CPI-W.

You can find the full article at cnbc.com.

 

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