Great risks await retirees who believe that their Social Security benefits will entirely fund a comfortable and possibly decades-long retirement.
It’s important to keep in mind that the recent 6% Cost of Living Adjustment (COLA) will only bring monthly Social Security payments to about $1,657 for individuals and about $2,754 for families. couples.
It’s hard to live in any developed country, and even more so in the United States.
Rising medical costs
Unfortunately, that’s not even all, as there are other rapidly rising expenses that are poised to take a big chunk out of government benefits. As personal finance expert Christy Bieber pointed out to The Motley Fool“a disturbing new report shows that it’s possible that almost a third of your entire benefit check will be taken up by a key expense you face as a senior, if you receive close to the average benefit social security.”
“Considering that the average Social Security benefit in 2022 is just $1,657 per month – or $19,884 per year – a retiree with a typical benefit and average medical costs could end up spending just over 31% from their entire Social Security check to pay for out-of-pocket expenses associated with their medical needs,” she adds.
Unsurprisingly, this massive percentage can come as a huge shock to many retirees, especially if they’re facing financial issues.
“Over the past twenty-one years, COLAs have increased Social Security benefits by 55%, but housing costs have increased by nearly 118% and health care costs have increased by 145% over the past twenty-one years. the same period,” said Mary Johnson, Social Security and Medicare policy analyst for The Senior. Citizens’ League, claimed in a declaration.
More money for seniors
In light of this unsavory situation and the searing inflation seen across the country, the Senior League says enough is enough.
For months, the group has been campaigning via a hugely popular petition urge Congress to quickly approve a fourth round of stimulus checks this would send $1,400 in direct payments to recipients of the Social Security program.
“Social Security benefits are one of the few types of inflation-adjusted retirement income. But soaring inflation has strained the household finances of retired and disabled Social Security recipients,” the petition reads.
It ends by saying, “I urge you now is the time to support a $1,400.00 emergency stimulus check to Social Security recipients.”
Ethen Kim Lieser is a Washington State-based science and technology editor who has held positions at Google, The Korea Herald, Lincoln Journal Star, AsianWeek, and Arirang TV. Follow him or contact him on LinkedIn.