by Maurie Backman
...In 2020, (click here) for example, beneficiaries received just a 1.6% COLA. That raise, in turn, would've added about $24 a month to the average senior's paycheck if it weren't for the fact that Medicare premiums rose simultaneously, thereby knocking out more than one-third of that increase.
But that's not the only reason why seniors are unhappy with not just this year's COLA, but COLAs in general. On a whole, they do a poor job of serving their intended purpose: keeping up with inflation. The Senior Citizens League estimates that Social Security benefits have lost 33% of their buying power since 2000. And that's why the majority of seniors feel the way COLAs are determined needs to change -- immediately.
A new way to calculate COLAs
In a recent survey by the Senior Citizens League, 85% of retirees said Congress needs to make changes to deliver higher COLAs to seniors. This especially holds true in light of the fact that COLAs have been extremely low for more than a decade, averaging just 1.4% annually. By comparison, COLAs averaged 3% annually between 1999 and 2009.
Not only have COLAs dipped in recent years, but Medicare Part B premiums -- which eat into Social Security increases -- have grown nearly three times as fast. As such, seniors on both Social Security and Medicare have seen a measly income boost over the past 10 years.
What's the solution?
Many seniors insist that COLAs need to be calculated differently. Right now, the CPI-W is an imperfect tool for determining COLAs, because its data reflects expenses that aren't senior-specific. Seniors, for example, are likely to struggle with rising healthcare costs, and care less about fluctuating fuel prices, since they don't commute daily to work. That's just one example, but it explains why 38% of the seniors surveyed by the Senior Citizens League think there should be a distinct CPI for older Americans -- the CPI-E, or Consumer Price Index for the Elderly, whose data would then dictate what COLAs amount to.
Meanwhile, 47% of seniors feel there should be a minimum 3% COLA guarantee each year -- a raise that's more in line with the general rate of inflation.
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January 24, 2020
By Niv Elis
A spat (click here) between former Vice President Joe Biden and Sen. Bernie Sanders (I-Vt.) over social security has brought an issue long considered a sacred cow for Democrats to the forefront of the 2020 race....
...The back-and-forth comes as both candidates have staked out somewhat different positions on social security.
Sanders has consistently called for expanding the entitlement programs such as social security as well as benefits, promising to raise money by increasing taxes on the wealthy and on corporations.
Meanwhile, Biden has also argued for an expansion of social security, though he has also frequently called for “grand bargains” that would sacrifice Republican sacred cows by raising taxes and also Democratic ones by addressing, in some form, the unsustainable elements of Social Security.
That willingness to compromise and work with Republicans is often touted as an attractive asset by some of Biden supporters, but it has been less well received by progressives who support Sanders.
