Spotlighting the Inadequacy of Social Security’s COLA
Against a statistical backdrop that shows the gulf between the growth rate of Social Security’s cost-of-living adjustments (COLA) and the growth rate for Medicare premiums (hint: the latter paces the former by about 3 to 1), The Senior Citizens League (TSCL) calls for a modest boost in Social Security benefits and a strengthening of Social Security financing. TSCL’s Mary Johnson notes that “Older Americans feel the COLA does not adequately protect their Social Security benefits from rising costs …”, and reports that an improved calculation basis needs to be considered–one that is weighted more heavily toward spending factors more realistic for seniors.
TSCL remarks are based on a recent survey 2019 Senior Survey which, among other conclusions, indicated that nearly half of respondents were in favor of “… a minimum COLA guarantee — of no less than 3 percent.” For more on the remarks from TSCL, check out their post on Cision PRWeb.
And while we’re on the subject, many are aware that the Association of Mature American Citizens (AMAC) has been actively engaged in the battle to craft legislation for a long-term solution to Social Security’s solvency issue. Most recently, AMAC has put forth an updated version of this framework, “The Social Security Guarantee Act,” a plan that combines the Association’s original platform with selected assumptions taken from legislation introduced by former Rep. Sam Johnson (R) of Texas and Rep. John Larson (D-CT) to achieve what is believed to be the best path to long-term Trust Fund solvency without raising taxes.
A key component of AMAC’s proposal is the implementation of a tiered and guaranteed annual COLA, with the underlying objective of ensuring that seniors can be confident of a COLA every year. Under this plan, lower income households would see a COLA of 3% to 4% each year. Learn more about the “The Social Security Guarantee Act” by visiting AMAC’s website.