![]() ![]() To match the buying power that Social Security’s monthly benefits provided for beneficiaries in 2000, retirees would now need an extra $516.70 per month ($6,200 in 2023), the group found. Since 2000, The Senior Citizens League has created its own Social Security buying power index that tracks the price of 38 goods and services typically used by retirees over the same period. "Our Senior Survey found that two-thirds of survey participants spend up to 29% of their incomes on health care costs." "For example the CPI-W, which is used to calculate the COLA, assumes that consumers spend only 7% of their incomes on healthcare costs," Johnson said. Part of the problem is the index used to calculate COLA doesn’t necessarily reflect the typical spending that retirees do. Average benefits in 2023 so far have only recouped about $179.40 of that total since the start of the year. Other research in April by The Senior Citizens League also found that average benefits fell short of inflation by about $1,054 from January 2021 to December of 2022. ![]() The group’s survey of 1,815 seniors was conducted between January 2023 and May 5, 2023. ![]() More than half (53%) of seniors say they’re worried the COLA for next year will fall short of inflation because their monthly household budgets have already increased by $185, or more than the extra $140 per month this year's 8.7% COLA bump provided, Johnson said. ![]()
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