Some seniors will continue to struggle even with a raise
Maurie Backman of The Motley Fool notes that many seniors still struggle to make ends meet on Social Security. Over-reliance on benefits is the main reason, as benefits only replace about 40% of pre-retirement income. Cost of living adjustments have been so low in the past two decades that many have fallen further behind. The official federal poverty level for a single adult is $12,060 per year. Average Social Security benefits are a mere $5,000 above that threshold at about $17,000 per year. Add in that many economists believe today’s poverty thresholds are so low that they ought to be doubled and the full extent of the poverty problem can be seen. Backman addresses steps that seniors can take before and during retirement to avoid poverty. Read the full piece here.