I just heard that next year Social Security recipients would not see a cost-of-living adjustment (COLA) to their payments. That is a troubling thought for the 41 million seniors whose financial security depends on the program. Some depend on their COLA payments to pay on their mortgage or equity line of credit to keep their homes while paying for other essential necessities.
While overall inflation might not be rising in the United States, the daily costs for seniors are growing fast - especially on the things that seniors need most, such as health care and prescription drugs. The average senior spends $4,400 out of pocket every year on health care alone.
Further, a depressed housing market, investment losses, and low returns on CD's and money market accounts make it even harder for seniors to recover from the recession or, in terms of real estate, to sell their home & move into a smaller home, either as a new purchase or as rental. Now is the worst time for a lack of a COLA for Social Security.
Not only would this relief help seniors afford health care, prescription drugs, food and other necessities, but it will also inject money directly into the economy, because seniors are more likely to spend the money than any other age group.
If Congress can come up with trillions of dollars for banks, Wall Street & find money to pay themselves a 5% raise then they can surely find the money to pay for a COLA for Social Security recipients.
Please contact your congressional delegates on this important issue.