Sinenkiy | iStock | Getty Images
The Social Security cost-of-living adjustment for 2022 may very well be the best it has been in a long time.
The newest estimates from The Senior Citizens League, a nonpartisan senior group, level to a possible 6.2% increase for subsequent yr primarily based on the most recent Consumer Price Index knowledge. In comparability, this yr’s bump to advantages was simply 1.3%.
Yet subsequent yr’s potential improve comes as seniors are already dealing with rising prices. Moreover, larger Medicare Part B premiums and taxes on advantages may additionally eat away at that adjustment.
Now, The Senior Citizens League is hoping to do one thing about it.
Last week, the group despatched an e mail to supporters informing them of its plans to petition members of Congress for new $1,400 stimulus checks simply for seniors.
“We have actually hit a nerve with that first e mail,” mentioned Mary Johnson, Social Security and Medicare coverage analyst at The Senior Citizens League. “It was a right away response of assist for the concept.”
The group acquired greater than 100 replies from seniors who shared their tales.
More than 50 of these messages talked about having to chop all the way down to one meal a day or bother affording groceries, Johnson mentioned. Many of the seniors who responded additionally mentioned they have been reducing again on pharmaceuticals.
While subsequent yr’s COLA may very well be the best it has been in years, for many seniors that is trigger for concern, Johnson mentioned.
An enormous COLA makes low-income seniors nervous that they’re going to be dealing with changes to their Medicare prices, to meals advantages, rental subsidies and that kind of factor, Johnson mentioned.
New stimulus checks may very well be a approach to get additional non-taxable earnings to them, Johnson mentioned. The hope is that these funds may assist defray the upper prices some would face if subsequent yr’s COLA bumps them into a better tax bracket, prompting larger levies on their earnings and surcharges to their Medicare Part B premiums.
The Senior Citizens League plans to contact Congress with its marketing campaign quickly, Johnson mentioned. The group plans to advocate for funds significantly for low- to middle-income retirees, although it is versatile on the phrases of how the cash can be distributed.
To make sure, polls present extra stimulus checks are broadly in style with Americans. However, there was no indication that Congress plans to incorporate fourth funds in its busy fall legislative agenda.
A Data for Progress poll launched in January discovered 65% of Americans are in favor of month-to-month $2,000 stimulus checks.
Moreover, a March Bankrate survey discovered that 61% of Americans mentioned the final $1,400 stimulus checks, deployed earlier this yr, would not final for greater than three months.
The Senior Citizens League mentioned many seniors have needed to make monetary changes since March 2020 in response to the Covid-19 pandemic.
A latest survey discovered they have been almost certainly to spend emergency financial savings, change their investments or withdraw extra financial savings than traditional. Moreover, some turned to meals pantries or so-called SNAP (meals subsidy) advantages, sought assist with heating and cooling payments, Medicare or pharmacy help packages or rental help to get by.