No Cost of Living Increase for Social Security Benefits
This year, Social Security celebrated its 80th year. But in 80 years, how far has it really come. Local recipients are wondering how they’ll continue to make ends meet after getting the news there will be no cost of living increase next year.
Elaine Rose is a retired nurse, lives on a fixed income and is already struggling to pay the bills. A blow to her social security income is the last thing she needs, especially when she’s out of a job due to medical reasons. “It’s not easy whenever you have been independent and you know that you’re on your own and a lot of the families cannot contribute.”
Many in her shoes are frustrated after learning there will be no cost of living increase for social security next year. While food, housing, medical care, and other living expenses go up, the monthly benefits seniors rely on will continue to lag behind. This move affects 65 million Americans, marking the third time in the program’s history that there will be no increase. By law, social security benefits can only go up if gas prices are up as well.
For some of these retirees, the monthly social security check is all they have to get by and these cuts next year will affect them greatly. President of Trustmark Bank Eric Brown said, “What they spend is different than what a wage earner, what you and I, spend. For instance, one of our big expenses may be gasoline, so those costs went down for us and that offsets increasing prices for a lot of other things, food or whatever.”
While many seniors who have retired are now finding themselves back in the workforce, others, like Alma Kitchen, say planning ahead has put her in a better position. “My father taught me that to prepare for old age and he said ‘if you save nothing but one penny. That’s alright.’”
Financial experts say preparing for the future can help during working years but it won’t fix the problem many are facing today.
Elaine Rose is a retired nurse, lives on a fixed income and is already struggling to pay the bills. A blow to her social security income is the last thing she needs, especially when she’s out of a job due to medical reasons. “It’s not easy whenever you have been independent and you know that you’re on your own and a lot of the families cannot contribute.”
Many in her shoes are frustrated after learning there will be no cost of living increase for social security next year. While food, housing, medical care, and other living expenses go up, the monthly benefits seniors rely on will continue to lag behind. This move affects 65 million Americans, marking the third time in the program’s history that there will be no increase. By law, social security benefits can only go up if gas prices are up as well.
For some of these retirees, the monthly social security check is all they have to get by and these cuts next year will affect them greatly. President of Trustmark Bank Eric Brown said, “What they spend is different than what a wage earner, what you and I, spend. For instance, one of our big expenses may be gasoline, so those costs went down for us and that offsets increasing prices for a lot of other things, food or whatever.”
While many seniors who have retired are now finding themselves back in the workforce, others, like Alma Kitchen, say planning ahead has put her in a better position. “My father taught me that to prepare for old age and he said ‘if you save nothing but one penny. That’s alright.’”
Financial experts say preparing for the future can help during working years but it won’t fix the problem many are facing today.
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